This unprecedented event demonstrates a new method for scaling the voluntary carbon market.
A Singapore-based Global carbon credit exchange and marketplace, Climate Impact X (CIX), has announced that it has completed a pilot auction of a portfolio of high-quality carbon credits.
The auction successfully cleared 170,000 carbon credits from eight recognized NCS projects curated to form a diversified portfolio, at US$8 per ton. Each of the NCS projects, spanning reforestation and avoided deforestation initiatives (across Africa, Asia and Latin America) demonstrate the high-performance of carbon sequestration and high levels of verified co-benefits, such as supporting biodiversity, along with social and economic development in local communities.
This pilot auction is an opportunity for CIX to demonstrate a new method for scaling the voluntary carbon market. By curating supply into a portfolio, CIX simplifies the buying experience; by leveraging an auction, CIX offers an efficient and competitive price discovery mechanism that establishes a fair market price for both buyers and sellers.
The projects also help support a broad base of verified co-benefits and delivery against UN Sustainable Development Goals. The eight projects collectively support more than 55,000 jobs, improve education for more than 35,000 students, help fund 60 medical facilities and infrastructure projects; and initiate efforts to protect over 250 threatened wildlife species.
First of its kind
The portfolio auction is the said to be the first of its kind in the global voluntary carbon market. By delivering greater transparency, efficiency and risk mitigation for buyers, the pilot auction supports the scaling of the voluntary carbon market, as advocated by the Taskforce on Scaling Voluntary Carbon Markets.
CIX’s pilot auction attracted strong interest from many global companies, and the final group of buyers represent different industry segments and active market participants eager to grow the voluntary carbon market: Of the group of buyers, DBS Bank, Singapore Exchange, Standard Chartered and Temasek—all co-investors of CIX—purchased the carbon credits at auction clearing price instead of participating in the auction. The other buyers include: Berge Bulk, Boston Consulting Group, City Developments Limited, ENGIE, Gunung Capital, Marquis Energy Global, Mercuria Energy, SK Energy International, ST Telemedia Global Data Centres, STX Group, Trafigura, Vertree and Vitol.
Said Mikkel Larsen, Interim CEO, CIX: “We are grateful for the support we saw through this pilot auction. We saw conviction from buyers and sellers for high quality carbon credits and specifically the enthusiasm for natural climate solutions. Nature is too big to fail.”
CIX will leverage the expertise and experience from this pilot to launch regular auctions that will be held in early 2022.