OPIS releases price index and brings transparency to the voluntary carbon market

Another important step to endorse the BOOM of the voluntary carbon market: OPIS uses its expertise in an index that presents daily prices of REDD+ projects.

For the past years, the increase of the voluntary carbon market was noteworthy. The change in the attitude of entrepreneurs, organizations, and individuals has increased the demand for solutions that offset CO2 emissions aiming at promoting the low carbon economy.

As a consequence, such a market is becoming more fluid in order to meet the quality and transparency requirements that the demand requires.

In the face of such a need, OPIS, the price reporting agency of IHS Markit, which is an organization worldwide known for its expertise and reliability in critical information, analysis, and solutions that boos economies and markets around the world, has developed a daily price index for the carbon offset credits market.

 

What is the OPIS?

Oil Price Information Service is a service that provides reliability for commodities transactions.

OPIS keeps track of real-time news, analyzes data, uses advanced software, offers educational events, and takes part in them, and, more importantly, it listens to the market and  its players so from there onwards it creates price reports that abide by international standards.

How OPIS will be used for carbon credits pricing?

The index shall work as a reference to assess how much is worth the carbon credit stemming from the Reducing Emissions from Deforestation and Forest Degradation (REDD+) based on indicators, such as: prices per offered (“offers”) and demanded (“bids”), credit volume range, vintages, methodologies, (Verified Methodology – VM), additional certifications (CCBS), and delivery period.

Click here and get more information regarding the index

 

Biofílica as one of the market’s reference

For us, it is of utmost importance that the volunteering market is even safer for the purchasers, and we are proud to contribute for this to be real.

For such a reason, in 2020, while the index was being developed, we had the honor of being consulted and invited to collaborate with the definitions, proving information and suggesting indicators based on our market knowledge and experience.

OPIS by IHS Markit engaged with dozens of voluntary carbon market stakeholders around the world to develop a daily pricing methodology for REDD+ credits that fairly and accurately represents the way the global market trades. Biofilica is a leading project developer in Brazil’s REDD+ credit voluntary market who engages with OPIS in both our methodology development and our daily price discovery. OPIS appreciates the ongoing engagement and trusted relationship with Biofilica together with all of our valued global voluntary carbon market stakeholders that help us bring daily price transparency to the voluntary REDD+ credit market through confirmed carbon credit trading activity.

 

 

Lisa Street
Director of Global Carbon Pricing
OPIS by IHS Markit

 

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What does the index mean for the purchasers and players of carbon credits?

The need for carbon credit price transparency is increasingly urgent. Having an internationally acknowledged organization and service with OPIS and IHS Markit reliability has a significant weight and represents a great improvement for this market to become even more robust.

For the carbon credit purchasers and players, such evolution means more security and guarantees in transactions for the neutralization of the volunteering market emissions.

Do you want to know more about this topic? Talk to our team of specialists

 

Offset your company’s emissions through the carbon credits generated by our Projects.

 

 

 

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