The 2012 Voluntary Carbon Markets report is to have its North American launch in Washington D.C. this Thursday, June 14, and promises to provide valuable insight on issues such as the large quantity of credits sold to final buyers, leading third-party standards and the rise of wind and renewable energy projects.
This article originally appeared in the Voluntary Carbon newsletter. Click here to view the original.
12 June 2012 |
The market for voluntary carbon offsetting hit a three-year high in 2011, transacting more than $576 million of offsets, second only to 2008’s record $776 million, according to the 2012 State of the Voluntary Carbon Markets Report,
which was unveiled last week to a packed house at Carbon Expo in Cologne, Germany.
If you missed the event, you can download the report here - or better yet - join us for the North American launch, hosted by Baker & McKenzie at their Washington, DC offices on June 14. The event will include a panel presentation of findings from 4:30-6:00 PM, followed by a reception. To attend, RSVP by COB tomorrow, June 12 via email to email@example.com.
At the DC event, a panel of US-based carbon experts will join Ecosystem Marketplace to present the latest findings in this report series, including:
- In 2011, the value of the voluntary marketplace increased to $576 million as the average offset price increased slightly from $6/t in 2010 to $6.2/t. Actors in the voluntary carbon markets contracted 95 MtCO2 for immediate or future delivery. Of this total volume, suppliers reported that they or their buyers retired 13 MtCO2e.
- Credits from wind projects transacted the largest volume of credits among any project type (23.5 MtCO2e), followed by afforestation/reforestation (7.6 MtCO2e) and REDD (7.3 MtCO2e). As a category, renewable energy projects generated 35 MtCO2e or 45% of all volumes that were tied to a project type in 2011 – roughly the same space occupied by forest carbon credits in the year before.
- Unlike previous years where the high end of the price spectrum was dominated by low-volume transactions of boutique project types, this year some of the voluntary market’s most popular credit types also transacted credits at above average prices – most notably clean cookstoves ($13.2/tCO2e) and REDD ($12/tCO2e).
- Overall, we tracked 10 MtCO2e of offsets transacted for California pre-compliance purposes, at an average price of $8/tCO2e – for a total value of $85 million in 2011. Respondents attributed the largest volume of transacted credits to CAR early action ODS credits, followed by IFM.
- In 2011, the VCS, CAR, the Gold Standard and ACR were the front-runners for market share among independent third-party standards, together guiding the development of 75% of all transacted credits. Continuing a 5-year streak at the top of the chart, the Verified Carbon Standard saw 41 MtCO2e of credits transacted utilizing its standard.
- In 2011, suppliers reported selling 53% of credits to final buyers with the understanding that they or their buyers would retire the credits to offset emissions. All told, purely voluntary buyers’ transactions were worth $368 million – or 64% of overall market value.
- 92% of all credits were transacted by for-profit corporate buyers. The largest proportion of these buyers voluntarily purchased offsets to attain corporate GHG targets that were established for CSR or public relations and branding purposes.
- European buyers maintained their lead as the largest source of offset demand, transacting 33 MtCO2e worth $204 million – a little over 1/3 of overall OTC market value in 2011. In the context of both country-level and purely voluntary demand, the US came out on top – purchasing 19 MtCO2e for purely voluntary purposes, with 12.4 MtCO2e going directly to end users.
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