Nasdaq Launches World’s First Carbon Removal Indexes03.25.2022
Nasdaq announced the launch of new commodity reference price indexes. The indexes are the first in the world to track the price of removing carbon dioxide from the atmosphere, and will follow the price of Carbon Removal Certificates (CORCs) issued by Puro.earth. By providing access to reference prices for carbon removal, Nasdaq aims to create the transparency needed to encourage investment and support project financing decisions.
“This new family of indexes creates a reference price for carbon removal and represents another step forward in Nasdaq´s journey to create a transparent and robust market for carbon removal together with Puro.earth,” said Fredrik Ekström, Head of European Fixed Income and ESG. “The indexes will create a price benchmark to help our clients better understand the true cost of neutralizing their emissions. They will also serve to stimulate the growth of the carbon removal ecosystems by supporting the business case for new carbon removal projects and help potential investors make better informed decisions.”
'@Nasdaq has launched three new commodity reference price indexes:
• CORC Carbon Removal Price Index (Nasdaq: CORCX)
• CORC Biochar Price Index (Nasdaq: CORCCHAR)
• CORC Bio-based Construction Materials Price Index (Nasdaq: CORCWOOD)
— Puro.earth (@PuroCO2Removal) March 24, 2022
Puro.earth is a leading marketplace for carbon removal in which Nasdaq acquired a majority stake in June 2021. The main index, CORC Carbon Removal Price Index (CORCX), reflects the cost of sequestering one ton of carbon dioxide based on CORC transactions from all engineered carbon removal methods supported by the Puro Standard. The CORC Biochar Price Index (CORCCHAR) and the CORC Bio-based Construction Materials Price Index (CORCWOOD) reflect the price of carbon removal in the form of biochar, and bio-based construction materials such as wooden building elements, respectively.
“This launch marks an exciting moment for the voluntary carbon market. The indexes will give visibility into the trends of carbon removal credit pricing to climate finance stakeholders and have the potential to pave the way for the commoditization of CORCs,” said Antti Vihavainen, CEO of Puro.earth. “Over time, as the voluntary market for carbon removal becomes more liquid, the reference price index family will serve as a platform to create innovative new financial products that support our journey towards a net zero economy.”
The dissemination of the new indexes will begin effective March 24, 2022.
The electronic broker collaborated with Sustain.Life for emissions data.
The venue promotes interoperability between crypto and carbon markets.
The meeting will discuss supply and demand for high quality carbon offsets, product standardization and data.
Overly stringent capital requirements would impair investment in the transformation to a green economy.
The exchange hopes to list carbon funds later this year.