News & Insights

Introducing The AlliedOffsets’ Compliance Credit Tags Dataset

Written by Fundi Maphanga | Jan 26, 2024 1:15:00 PM

The AlliedOffsets team is happy to announce our work in tagging VCM credits from projects eligible for over 12 distinct compliance carbon market schemes. Leveraging our comprehensive dataset of more than 29,000 projects, we have built the world’s largest hub for carbon credits which can be used in carbon pricing mechanisms around the world. Users can identify projects eligible for one or multiple schemes, and can filter by jurisdiction, project location, sector and registry to generate insights on the compliance-voluntary carbon market convergence. Clients with access to the AlliedOffsets Premium Dashboard will be able to view credit prices, as well as brokers where credits can be purchased.

This dataset was built by tagging credits we believe to be eligible for multiple types compliance schemes including cap-and-trade (eg. California - CARB; Washington - Cap-and-invest program), emissions trading schemes (eg. South Korea's ETS; China's CCER) as well as the carbon tax schemes (eg. Colombia; Singapore; South Africa). For a more detailed breakdown of which compliance schemes we cover, read our blog here.

We have identified credits based on publicly available qualitative requirements which governments have set on domestic and international offsets and credits approved for use under their regimes. Requirements around credit use for compliance include approved lists of domestic and international standards (GSR, Verra, CDM), credit vintages (eg. post-2021 credits), activities (sectors or methodologies) and project host country locations (e.g. Papua New Guinea). Having tracked policy updates and guidance on over 29 countries to develop our AO Policy Scores, we have been able to track the flow of these credits and their prices over time. Knowing the number of credits can help us draw insights into supply and demand dynamics, market price dynamics, sentiment analysis, forecasted issuances and more.

Our ‘Compliance Credit Tags’ dataset provides a granular view of carbon credits eligible for various compliance schemes, integrating vital project information such as project name, developer, registry, sector, methodology and buyer details. The inclusion of credit labels including CCP probability, CORSIA Eligibility, and Article 6 readiness adds an extra layer of strategic insight crucial for investment and offsetting decision-making. 

Leveraging our comprehensive pricing data,  the tool offers dynamic insights into price fluctuations to give clients a competitive edge in market analysis. Stakeholders can use the tool to identify trends and pricing patterns across compliance schemes, and engage in strategic purchasing based on credit eligibility and price history, portfolio diversification, risk assessments and market forecasts.

The ‘Compliance Credit Tags’ tool will provide filter options for a dataset of projects, giving users a detailed overview of relevant project information including project name, project developer, methodology and sector, location of the project, credit issuances, prices per credit as well as the broker or marketplace which sells the credits. 

Key features which this dataset provides will include:

  1. Credits eligible for single, or multiple schemes - including key project and credit information as well as other credit labels: Authorisation; CCP Probability, CORSIA Eligibility, Article 6 Alignment. 
  2. Project Prices- including how these prices have changed over time. 
  3. Brokers and Marketplaces - locating where credits can be purchased

 

The dataset will be able to help market participants answer pressing queries, such as:

  • Give me a list of credits issued between the years of 2018 and 2020, from projects located in Colombia, under the price of $5.
  • Give me a list of all eligible credits which can be cancelled against Singapore’s carbon tax, based in Papua New Guinea under the price of $6.
  • Give me a list of all the projects with credits eligible for California ARB Compliance Offset Program, their prices, as well as the brokerages I can purchase the credits from.
  • "How many compliance schemes are Rimba Raya credits eligible for?"

 

The growing intersection between the VCM and compliance schemes is set to have big implications, namely:

  • Increased demand for VCM credits - particularly for credits widely accepted among multiple compliance schemes
  • Influence on pricing dynamics - potentially higher prices per ton, and increased market participation
  • Kickstarting innovation and development - increased demand could incentivize innovation & development of new carbon reduction projects (e.g. Carbon Capture and Utilisation solutions)
  • More ambitious climate action - increased funding and attention towards "high-hanging fruit", climate mitigation projects which would count towards national climate contributions

 

As compliance schemes evolve and policy guidance shifts, we remain committed to regularly updating our dataset to offer the most accurate and up-to-date information available.

To schedule a demo, or to get more information on how we calculated eligible credits for each scheme, send us a message at hello@alliedoffsets.com.

Disclaimer: This dataset is intended for informational purposes only and should not be interpreted as financial advice. Users should consult with a qualified professional before making any investment decisions.