Comprehensive Carbon Credit Pricing Updates

At AlliedOffsets we are really proud of our leading and accurate carbon pricing data based on real broker data, advanced algorithms and our pricing calculator. 

So, to start the year off strong, we’re excited to announce several new pricing features and updates that are live now or coming soon to our dashboard. These updates are designed to provide deeper insights into carbon credit pricing. Let’s explore the updates. 

Bid/Ask Spread 

We’re adding an estimated bid price alongside our current estimated offer price per credit. This update provides users with a bid/ask price range to better understand price movements in the voluntary carbon market. 

Here’s what you need to know:

• Real Bid/Ask Data: Where available, the bid price will reflect real bid/ask spreads market data. When our team built this feature, we focused on weeks where both bid and ask prices were available, and calculated the percentage spread to provide deeper insights into market liquidity and pricing trends. 
• Smart Estimation: In cases without direct data, we’ve implemented calculations based on bid/ask trends within specific project types. This new feature will give you a clearer picture of pricing dynamics and differences. 

This analysis aims to offer a clearer understanding of price dynamics and trading opportunities in the VCM. The new feature offers 2 types of specific insights: 

• Project: Indicating that the 'Spread %' is obtained for the exact uid by the same broker. 
• Sector: Indicating that the 'Spread%' is populated for the uid with 'Spread%' information obtained at a sector level by the same broker. 

This data can be used to conduct detailed price analysis and allow businesses to pinpoint opportunities where bid prices align with their purchasing strategies or where ask prices indicate potential selling opportunities.

Free Carbon Credit Price Checker

We’ve launched a free service to make it easier for users to validate their prices and price benchmarks. 

How does it work? It’s very simple! Enter prices you’ve paid or offered, and compare them against our estimated prices per credit. 

Price estimations: Our estimates are derived from intermediary ask prices.

Try the tool for free here: Carbon Credit Price Checker

Users can use this tool as a first step to ensure their credit prices align with market norms before diving deeper into granular analysis with the Pricing Calculator or the Prices and Market Explorer.

Prices and Market Explorer

Our Prices and Market Explorer dashboard has been updated to provide users with further unique insights into carbon credit pricing trends. Users can identify and filter for the specific market segment in which they are interested, then understand what project characteristics or integrity metrics impact price movements. 

With this tool, users can quickly and effectively get access to: 

• Market Overview: A high-level snapshot of issuances, retirements, CDR offtakes, top buyers, and price trends over time. Here, users can include filters such as project type, geography, and integrity metrics to tailor the results to their interests.  
• Granular Price Movements: Analyze week-on-week averages of project prices by vintage, with the same filtering capabilities as the market overview page. 
• Detailed Pricing Analysis: Explore pricing for specific market segments based on characteristics such as compliance eligibility, co-benefits, and CCP approval. 
• Custom Indices: Create retirement-weighted index prices for a basket of credits. Analyze trends across time frames for filtered project categories. 
• Technical Removals, or CDR: Compare developer-reported price projections through 2030 using actual known prices. Exclude or include specific developers for more targeted insights.

With this tool users can also stay up to date with any changes to the data, by subscribing to email alerts based on their specific set criteria. Users can also combine these insights with our bid/ask data to identify liquidity levels and potential trading strategies within particular market segments.

Pricing Calculator: A Customizable Pricing Tool 

The Pricing Calculator is built off of the AlliedOffsets pricing model and offers a unique and bespoke way to estimate prices. 

Inputs: Enter a project’s unique characteristics, credit vintage, and credit volume of purchase to see an indicative ask price per credit.

• Future Planning: Evaluate upcoming projects and understand which attributes will have an impact on the price of a project’s credits. 
• Better Understanding: Prices reflect generalized intermediary offer prices for a well-rounded view of market dynamics.

This is particularly useful for project developers or investors assessing the financial viability of upcoming projects.

Why have we implemented these updates? How can they be used?

These new features and tools are designed to work cohesively, offering users deeper insights into pricing dynamics, helping us support our users to make informed decisions based on more accurate and reliable pricing data. 

Get in touch with our team to learn more about these new features and how they can support your business use cases.