A new analysis from Calyx Global, a carbon credit rating agency, and ClearBlue Markets, a carbon market consultancy, reveals an improvement in carbon credit quality during 2024, which is influencing market prices.
These findings are based on pioneering quality and price indices, the first of their kind, created to monitor the voluntary carbon market (VCM).
These indices represent a significant advancement in market transparency, providing a standardized method for evaluating quality and fostering greater trust in a sector that has recently faced scrutiny.
The data underpinning these indices also forms the basis of a newly released report, “State of Quality and Price in the VCM.”
The Calyx Carbon Integrity Index™ and the Calyx-ClearBlue Carbon Price-Integrity Index™ offer valuable benchmarks for stakeholders seeking to understand the dynamics of carbon credit markets.
The lack of standardized quality and price assessment tools has been a challenge for investors, businesses, and policymakers navigating this complex landscape. These indices address this gap by providing both price and quality transparency.
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“The voluntary carbon market can be an impactful mechanism for achieving global climate goals, but its long-term success depends on trust and transparency,” stated Duncan van Bergen, Co-founder of Calyx Global.
“With the launch of these indices, we’re empowering companies and investors to gain a deeper understanding of the level of risk and real improvements in the market.”
“The voluntary carbon market is undergoing a clear shift, with buyers increasingly prioritizing integrity over volume. The stabilization of prices, particularly the premium for removal-based credits, suggests that quality is becoming the key driver of market dynamics,” said Jennifer McIsaac, Chief Market Intelligence Officer at ClearBlue Markets.
