What’s the going rate for different carbon projects in the VCM? The difficulty in confidently answering this question drove Abatable to release carbon market pricing data for free as part of our new intelligence platform. As Anton Jidkov explains, our pricing tools help users benchmark carbon market prices and are ultimately designed to offer more transparency to the market.
A market without clear information on the value of its products is, by its nature, opaque, with high transaction costs for market participants. Increasing transparency not only improves market efficiency but also decision-making, helping to protect investors and market actors and resulting in a freer market better equipped to fulfil its purpose.
For the voluntary carbon market (VCM) that purpose is helping solve perhaps the most important problem society has faced: climate change.
It is within this lens that Abatable made the decision to make an overview of its pricing information available for free, democratising access to crucial carbon market data and empowering organisations within the VCM to build a thriving future for climate, nature and people.
Our pricing data is available through our intelligence platform – a one-stop-hub designed to help users navigate all the complexities of the voluntary carbon market.
Cutting edge pricing tools
Within our intelligence platform, our suite of pricing tools allows users to easily get an in-depth understanding of current carbon credit price trends, with our pricing data being based on real primary transactions in the voluntary carbon market.
Users can access up-to-date pricing data sourced from a combination of proprietary price points, including real trades and quotes directly from carbon project developers made through Abatable’s unique carbon sourcing platform. These searchable price points are also enriched with additional carbon credit price information from multiple sources, creating a detailed and reliable overview of credit prices within the voluntary carbon market.
The tools are designed to aid investors in carbon markets place new projects and stock check existing investments, and to allow carbon project developers to assess expansion options. Corporate buyers can use them to get a useful sense check of the market.
Aiding navigation
The carbon market can be difficult to navigate, with credit price variation influenced by numerous factors including carbon project type, location and the registry the project is using.
Our pricing tools solve this problem by offering users a clear overview of spot and forward trade prices across a diverse range of project types and geographies. This feature allows users to track price trends for different carbon credit vintages and see how prices fluctuate for both spot and forward transactions.
By being able to filter and compare prices by various factors, users can gain a more detailed and granular understanding of market behaviour – empowering them to make more informed decisions.
Pro tools
While all our platform users benefit from our broad overview of current prices, our pro users can access deeper insights. These include:
- Historic and forward prices: Access to a detailed history of price trends, along with forward price projections, enabling better forecasting and market analysis.
- Vintage trends: Pro users can also explore vintage-specific pricing trends, adding another layer of depth to their market understanding.
- Access to underlying data: Full access to the data that underpins the charts allows granular analysis of the numbers, perfect for users who want to dig deeper into price fluctuations.
Filter with ease
Our pricing tools equip users with several powerful capabilities, including:
- Filtering: Users can filter prices by factors such as project type, geography, registry and vintage.
- Comparison: The module allows users to compare prices across multiple dimensions, making it easier to see trends or anomalies within pricing data.
- Spot and forward prices: Users can view both current (spot) prices and forward deals, helping to understand how prices are expected to move in the future.
- Data transparency: The charts provided are underpinned by transparent data, giving users access to all numbers behind the visuals – including information on the volume of the transaction and whether the credits are CCB-eligible.
This suite of functionalities offers a clear picture of market pricing, allowing both buyers and sellers to effectively strategise their next steps in the VCM.
What’s next?
We’re continuously seeking feedback to improve our intelligence platform, and we’re particularly interested in how our users engage with our pricing tools to help us evolve them to provide even greater value. One area we’re currently exploring is the ability to model price premiums – how they function today and how they might evolve in the future – giving our users the tools to predict where the market is headed.
Please do feel free to leave us any feedback using the chat function at the bottom right in our platform.
As the voluntary carbon market continues to develop, so too will our pricing tools to help users navigate this growing and dynamic market with confidence.
Ultimately, we hope this will enable high-quality projects in the VCM to be more easily discoverable, and for the true value of carbon credit projects to be fully reflected in their prices.
Find out more and sign up to our intelligence platform here.
Read more about what’s available in the platform here.