Global carbon credit exchange and marketplace Climate Impact X (CIX) Tuesday announces that it has completed a pilot auction of a portfolio of high-quality carbon credits2, said a press release.
The auction successfully cleared 170,000 carbon credits from eight recognised NCS projects curated to form a diversified portfolio, at USD 8.00 per tonne. 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 Singapore-based CIX to demonstrate a new method for scaling the voluntary carbon market3. 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; plus efforts to protect over 250 threatened species.
The portfolio auction is 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 (TSVCM).
“The Pilot Auction was great proof of the desire of both buyers and sellers to find each other through a trusted market mechanism. It was also robust demonstration that an auctioning platform works, and that high-quality carbon credits can command better value. We believe that this is an important step in the journey towards scaling the voluntary carbon market,” said Piyush Gupta, CEO of DBS Bank.
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 market4 : Of the group of buyers, DBS Bank, Singapore Exchange, Standard Chartered and Temasek, being co-investors of CIX, purchased the carbon credits at auction clearing price instead of participating in the auction4.
