Clear Rating Monthly Newsletter December 2024
Clear Rating’s ESCI: Empowering the Future of Carbon Markets
Clear Rating is thrilled to announce that the Engineered Solutions Carbon Index (ESCI) has officially launched as a pricing indicator on Bloomberg (ticker: CLRAESCI on SPOT <GO>).
This represents a significant step in creating transparency and confidence in the environmental assets and carbon markets. As an affiliate of Entoro, Clear Rating is dedicated to driving innovation and delivering actionable insights in financial valuation for the environmental finance and banking sector.
Engineered carbon solutions such as direct air capture (DAC) and carbon capture utilization and storage (CCUS) are at the forefront of innovative change within carbon market risk management. CLRAESCI lays accurate pricing data and market transparency to create a more credible carbon market for capital and fund raising, enabling stakeholders to make informed decisions.
Highlights of CLRAESCI:
- Reliable pricing data on engineered solutions (non-nature-based) transactions
- A robust foundation for informed investment decisions in carbon markets
- Improved market transparency
How ESCI Supports Companies and Investors
The transition to engineered solutions like carbon capture, DAC, and biochar is redefining the VCM landscape. ESCI offers critical support by:
- Standardizing Pricing: Aggregating data from diverse projects, ESCI delivers consistent and transparent credit pricing.
- Enhancing Market Confidence: Regular updates ensure stakeholders have access to the most reliable data.
- Driving Innovation: By establishing clear benchmarks, ESCI incentivizes advancements in carbon reduction technologies.
Learn More About ESCI and Market Insight:
Explore Clear Rating’s resource & ESCI
Understanding Engineered Solutions in the Carbon Market
The Role of Data in Carbon Markets
How ESCI Supports Investment in Carbon Markets
The Impact of ESCI on Carbon Credit Rating
Engineered Solutions and The Future of Carbon Credits
FAQs
How does the ESCI differ from other carbon credit indices?
Engineered solutions, such as CCUS and DAC, are generally more scalable and offer permanent carbon storage compared to nature-based options, which can be subject to reversals like deforestation or degradation.
What is the pricing basket of the ESCI?
The pricing basket of the ESCI is a collection of engineered solutions carbon credits, weighted by their market share, to create a standardized benchmark price and to help market participants understand the average market price.
How does the ESCI handle pricing variability for different technologies?
The ESCI accounts for pricing variability by incorporating a Price Variation (Price Δ) for each category of engineered solutions credits. The fluctuation varies according to technologies, project sizes, locations and other factors.
Partner with Clear Rating Today
Stay ahead in the carbon market with Clear Rating. Schedule a consultation or visit our website for access to live ESCI data and analytics.
Stay connected, stay informed.
Contact Us
James C. Row, CFA
Founder/CEO
Clear Rating, LLC
O: +1 713.823.2900
E: jrow@clearrating.com
