ClearBlue Markets has prepared a report that details the structure of Corresponding Adjusted Credits (CACs) and highlights the potential supply and demand outlook, including price forecast.
This report was covered by both Carbon Pulse and Quantum news.
This report was covered by both Carbon Pulse and Quantum news.
🔹 Corresponding Adjusted Credits (CACs) are carbon credits originating from VCM standards, Article 6.4, or national and subnational standards. Authorized by the host country with a corresponding adjustment (CA) to prevent double counting, these credits are eligible for use as Internationally Transferred Mitigation Outcomes (ITMOs) for Nationally Determined Contributions (NDCs), Emission Reduction Units (EEUs) under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) or for voluntary use by companies that prefer credits with additional assurance.
🔹 By examining the commitments and NDCs of both host and buying countries, alongside mechanisms such as Article 6 of the Paris Agreement and CORSIA, ClearBlue has outlined the projected volumes and influencing factors for CAC transactions. The diverse pricing mechanisms—from market-driven benchmarks to regulated fixed prices—underscore the complexity and variability of this emerging market.
🔹 As seen through the landmark approvals for Article 6.4 Standards on the the first day, COP29 will be a critical venue for negotiations on the future of Article 6. Key issues, including the role of authorizations and the management of international registries, will be central to discussions, with the global community closely monitoring for resolutions that could drive increased CAC transfers and strengthen international cooperation.
🔹 As the market continues to evolve with new bilateral agreements and refined NDC commitments, ClearBlue’s demand and supply projections will remain adaptable, providing our clients with an essential tool for navigating the complexities of the global carbon credit landscape.
👉 To access this report, or to receive ongoing, detailed market analysis on the issues moving the carbon markets, become a subscriber of Vantage, our carbon intelligence platform.