Climate Impact X Auction for Blue Carbon Credits Oversubscribed With Global Demand
Singapore-based Climate Impact X (CIX), a global marketplace and exchange for quality environmental credits, and Respira International, an impact-driven carbon finance business, have completed a landmark auction for high-quality nature-based blue carbon credits.
The auction successfully sold 250,000 tonnes of vintage 2021 credits from the Delta Blue Carbon Project in Pakistan, the world’s largest mangrove restoration project, at USD $27.80 per tonne. This is $10.00 per tonne, or close to 40% premium to current spot prices for major REDD+ nature-based solutions of the same credit vintage.
To facilitate price transparency in carbon markets, CIX is publishing the auction demand curve which showcases the range of bid prices submitted. 30 per cent of the bid volume was priced at $35.00 per tonne or more, 27 per cent above the auction reserve price ($27.50 per tonne), signalling the premium at which some buyers were willing to pay for high-quality and unique credit types.
Drawing many buyers from around the world, concentrated in Asia, Europe and the United States, the success of the auction demonstrates strong international demand for quality carbon credits given rising corporate net-zero commitments and in the run-up to the 27th UN Climate Change Conference (COP 27).
Natural Carbon Sink
Despite a backdrop of high inflation and global macro uncertainty weighing on the whole carbon market, this represents a strong signal of support for premium credits of high integrity.
“CIX’s core priority is to build trust and transparency in the carbon markets to unlock liquidity, and one of the ways we seek to do this is through the discovery of clear demand and price signals,” said Mikkel Larsen, CEO of CIX.
“This auction offers reassurance to the market that demand for quality carbon credits remains robust. We are proud to work with partners like Respira to deliver landmark auctions, and together help to scale the next wave of impactful carbon sequestration solutions.”
Mangroves are some of the most effective natural carbon sinks on earth, with the ability to store up to five times more carbon than upland tropical forests.
The Delta Blue Carbon Project is protecting and restoring 350,000 hectares of tidal river channels and creeks, low-lying sandy islands, mangrove forests and inter-tidal areas along the southeast coast of Sindh in Pakistan.
Over its lifetime, the project is expected to sequester around 142 million tonnes of carbon dioxide. It will also drive broader biodiversity and socio-economic impacts, which includes benefiting more than 42,000 people in local communities.
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