12:09 PM EDT, 03/11/2024 (MT Newswires) -- The price range of carbon credits purchased in the week straddling the end of February and the start of March contracted when compared with the previous week, analysis from ClearBlue Markets has shown.
In the week from Feb. 26 to March 3, prices of individual carbon credits across all projects ranged between $0.80 and $33 per unit, ClearBlue Markets' research showed, compared to a range of between $0.80 and $35 per unit registered in the previous week.
The research showed some changes when looking at different groupings of carbon credit projects.
The average price of carbon credits for projects that ClearBlue Markets classifies as Category 1 projects was $13.58 per unit, down 2.1% from a week earlier. These projects include all nature-based projects, individual REDD+, nature-avoidance and nature-based removals projects. A REDD+ project is one that seeks to reduce emissions from deforestation and forest degradation while also providing social benefits and biodiversity.
For projects classified by ClearBlue Markets as Category 2, the average price of carbon credits was $5.18 per unit, down 14.4% from a week earlier. These projects include household and renewable energy initiatives from least developed countries as well as projects from North American and European industrial emission destruction and renewable projects.
For Category 3 projects, which ClearBlue Markets defines as renewables, landfill and waste-related projects from developing countries, the average price of carbon credits was $1.76 per unit, up 1.4% from a week earlier.
Carbon credits -- units of measurement for projects that reduce or remove greenhouse gas emissions from the atmosphere -- are bought by companies, organizations and governments.
Prices of carbon credits vary based on the type of carbon offset project being implemented and the country or region where it is being undertaken. Additional market factors can also contribute to fluctuations in the price on a weekly basis.
ClearBlue Markets derives its data on carbon offsets from four carbon credit registries; American Carbon Registry, Climate Action Reserve, Gold Standard and Verra.
Source material provided by ClearBlue Markets (www.clearbluemarkets.com).