OPIS by IHS Markit Launches Daily Pricing Service for Voluntary Carbon Credit Markets
Oil Price Information Service (OPIS) by IHS Markit announced the launch of the OPIS Global Carbon Offsets Report, the world’s first comprehensive daily pricing suite for global voluntary carbon offset credits. According to the company, the new information service aims to bring greater transparency to the voluntary REDD+ credits and CORSIA-eligible offsets markets, providing pricing solutions to stakeholders engaged in net-zero and emissions reduction strategies.
Fred Rozell, President, OPIS by IHS Markit, said:
“The increasing number of net-zero commitments by countries and corporations underpins the demand for transparent benchmark pricing for voluntary carbon credits. To achieve emissions-reduction goals set forth in the Paris Agreement, the market is primed to grow exponentially by 2030. The OPIS Global Carbon Offsets Report will send a reliable price signal to the industry, enabling developers of nature-based projects to secure financing, which is paramount for the markets to scale. As we embark on 2021 and look forward to the COP26, OPIS is excited to lead the way in helping to unlock the potential of the carbon offsets markets.”
REDD+, Reducing Emissions from Deforestation and Forest Degradation, is a UN Framework Convention on Climate Change-backed initiative to slow, halt and reverse forest cover and carbon related to deforestation and forest degradation. CORSIA, the Carbon Offsetting and Reduction Scheme for International Aviation, is a global market-based measurement scheme developed by the International Civil Aviation Organization (ICAO) to offset CO2 emissions from aviation that cannot be eliminated or reduced through technological or operational improvements, using emissions units from the carbon market.
OPIS Global Carbon Offsets Report will provide the first daily price assessments for these initiatives’ carbon offset credits, and will also include daily assessments for California Carbon Offsets (CCO) and CCO with a Direct Environmental Benefit in the State. The Report includes 27 voluntary carbon offset credits physical assessments as well as 10 compliance offsets physical assessments. The service’s voluntary and compliance carbon markets assessments reflect confirmed bids, offers and trades reported by approved traders, brokers and electronic platforms.
OPIS stated that the new Report is the only carbon price suite that enables global voluntary carbon project developers, traders, marketers and investors to accurately identify a fair value for their assets.
Linda Herbert, vice president, OPIS by IHS Markit, said:
“Our team of dedicated carbon market experts committed 2019 and 2020 to extensive consultation with dozens of voluntary carbon industry stakeholders. This critical engagement resulted in the design of a robust methodology that accurately reflects fair-market value for forestry credits and CORSIA-eligible offsets. OPIS is confident that its full suite of voluntary carbon indices addresses the challenges that stakeholders currently experience from a lack of transparent pricing. With this launch, OPIS solidifies its commitment to addressing the pricing needs of rapidly developing global carbon markets.”