Argus launches prices for voluntary carbon markets

Global commodity price reporting agency Argus today launched prices for three key voluntary carbon markets (VCM) and five well-known projects, bringing transparency to trade in this emerging sector and supporting its development.

The fragmented nature of VCM means that liquidity is split across multiple types of project, and there is a lack of standardisation and fungibility. After extensive engagement with participants from across the VCM sector, including project developers, corporate buyers, brokers and traders, Argus has launched prices broken down by region and vintage for specific markets, covering:

  • REDD+ (reduced emissions from deforestation and forest degradation);
  • Renewable energy
  • Clean cookstoves
  • Project-specific – Envira (Brazil); Kariba (Zimbabwe), Katingan (Indonesia), Rimba Raya (Indonesia) and Southern Cardamom (Cambodia)

Argus has chosen to focus initial coverage on these specific types of credit because they account for the majority of traded volumes in the market today and provide market participants with the granularity needed to have confidence in a representative assessed price, avoiding the problems associated with covering too broad a range of uses or too many project types.

The VCM assessments are underpinned by Argus’ proven expertise and long experience in assessing illiquid markets by applying rigorous editorial standards to create reliable and trusted price assessments that represent true market value. The methodology is transparent and public.

Argus Media chairman and chief executive Adrian Binks said: “The voluntary carbon markets have the potential to play an important role closing the gap between what governments can deliver through mandated carbon markets and Paris Agreement climate ambitions. There is a real need for independent, precise and accurate prices. We have seen in other sectors that reliable benchmarks can really improve transparency and help markets evolve to allocate resources in the most efficient ways possible.”

The Integrity Council, an independent governance body for VCM, estimates that the sector could be worth $50bn by 2030.

About Argus Media

Argus is the leading independent provider of market intelligence to the global energy and commodity markets. We offer essential price assessments, news, analytics, consulting services, data science tools and industry conferences to illuminate complex and opaque commodity markets.

Headquartered in London with 1,300 staff, Argus is an independent media organisation with 29 offices in the world’s principal commodity trading hubs.

Companies, trading firms and governments in 160 countries around the world trust Argus data to make decisions, analyse situations, manage risk, facilitate trading and long-term planning. Argus prices are used as trusted benchmarks around the world for pricing transportation, commodities and energy.

Founded in 1970, Argus remains a privately held UK-registered company owned by employee shareholders, global growth equity firm General Atlantic and Hg, the specialist software and technology services investor.

Trademark notices

ARGUS, the ARGUS logo, ARGUS MEDIA, ARGUS DIRECT, ARGUS OPEN MARKETS, AOM, FMB, DEWITT, JIM JORDAN & ASSOCIATES, JJ&A, FUNDALYTICS, METAL-PAGES, METALPRICES.COM, INTEGER, Argus publication titles and Argus index names are trademarks of Argus Media Limited.