Carbon exchange CIX completes 250,000 tonne carbon credit auction
04/11/2022 06:14
SINGAPORE, Nov 4 (Reuters) - Global exchange Climate
Impact X (CIX) and carbon finance business Respira have
completed an auction to sell 250,000 tonnes of blue carbon
credits at $27.80 per tonne.
The credits are 2021 vintage, meaning they were issued last
year, and the price was $10 per tonne, or 40%, premium to spot
prices for other credits from that vintage, CIX said in a
statement on Friday. They were generated from Pakistan's Delta
Blue Carbon Project, the world's largest mangrove restoration
project.
"Despite a backdrop of high inflation and global macro
uncertainty weighing on the whole carbon market, this represents
a strong signal of support for premium credits of high
integrity," CIX said.
Blue carbon refers to carbon that is naturally stored by
marine and coastal ecosystems, while green carbon is contained
in vegetation and forest ecosystems.
The auction was awarded based on the lowest bid submitted
for the volumes that was above the reserve price. But 30% of the
bid volume was priced at $35 per tonne or more, said CIX, while
27% of the bids were above the auction reserve price of $27.50
per tonne, "signalling the premium at which some buyers were
willing to pay for high-quality and unique credit types."
Under increasing pressure to cut carbon emissions, firms
need carbon credits to offset emissions they are unable to
remove from their operations.
CIX, a global marketplace and exchange for carbon credits,
is jointly formed by Singapore's DBS Bank, Singapore Exchange
Group, Standard Chartered and Singapore state investor Temasek.
(Reporting by Emily Chow; Editing by Christian Schmollinger)
((emily.chow@thomsonreuters.com; Reuters Messaging:
emily.chow.thomsonreuters.com@reuters.net))