Experts predict a substantial increase in the price of carbon credits following the Integrity Council for the Voluntary Carbon Market's introduction of Core Carbon Principle (CCP) labels. Simon Jones, founder of Emral Carbon, forecasts that carbon credits could see price hikes of $10 or more.
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Similar to the premium pricing seen in cookstove projects under Article 6 of the Paris Agreement, CCP-labelled credits are expected to command a significant premium. This adjustment aims to prevent double counting in international transfers, enhancing transparency.
Market analysts are optimistic about the premium potential for CCP-labelled credits. Currently, voluntary REDD+ credits average $11.21 per metric tonne, while biochar credits have reached prices between $134 and $145.
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The Council has been reviewing over 100 methodologies from various registries to assign CCP labels. Their assessment is expected to conclude in the coming months, revealing which methodologies adhere to their rigorous standards.
Abatable highlighted the potential stratification of the voluntary carbon market through quality labels like CCP. Only a small fraction of current methodologies are likely to receive a CCP label, particularly those in waste management and industrial efficiency.
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Simon Jones emphasises the importance of due diligence in carbon projects, noting that CCP labels should not be seen as the sole indicator of project quality. Stakeholders are advised to remain vigilant and conduct thorough assessments to ensure the credibility of carbon credits.
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