In this list
Energy Transition

What determines the price of a carbon credit?

Energy | Energy Transition

Platts Custom Analytics

Electric Power | Energy Transition | Carbon | Emissions | Hydrogen | Renewables | Energy

AI is changing the energy system, putting premium on flexibility

Chemicals | Energy Transition | Oil & Gas

Seoul Commodity Market Insights Forum

Energy Transition | Natural Gas | Upstream | LNG | Carbon | Emissions | Hydrogen

Tokyo Gas to start Japan's first pipeline hydrogen supply March 29

Energy Transition

Platts Hydrogen Assessments

Energy Transition | Carbon | Emissions | Hydrogen | Renewables

Thyssenkrupp Steel to connect to GET H2 German hydrogen pipeline in 2028

For full access to real-time updates, breaking news, analysis, pricing and data visualization subscribe today.

Subscribe Now

Watch: What determines the price of a carbon credit?

  • Featuring
  • Silvia Favasuli    Vandana Sebastian    Felix Fernandez    Dana Agrotti    Kanchan Yadav
  • Commodity
  • Energy Transition
  • Length
  • 1:28
  • Topic
  • COP27 Energy Transition Environment and Sustainability
What's the difference between credits from removal and avoidance projects, what's a carbon credit's "vintage", and what other factors impact market prices? S&P Global Commodity Insights explains.

Learn more about Platts carbon price assessments and indices, daily news and market commentary, from S&P Global Commodity Insights.

Watch more videos in this series:

What is the Voluntary Carbon Market?

What determines the price of a carbon credit?

View Full Transcript
The traded price of voluntary carbon credits depends on many factors.
Credits issued by projects that permanently remove carbon from the air are considered as having higher impact and usually trade at higher prices. Credits from projects that simply avoid the release of further emissions typically trade at lower prices.
Within these two main categories, we can also classify credits by the underlying technology, such as renewable energy, clean cookstoves or forestry credits. Prices for each type mostly depend on implementation costs and supply and demand fluctuations.
Prices also vary depending on the certifier of the carbon project, the vintage – that’s the year when the credit was issued – and the country those credits come from or the "host country".
Carbon projects often combine climate action with social action. The more UN sustainable development goals met by a project the higher the price of the credits issued.