Renewable energy offset prices sink further

The price of renewable energy carbon credits fell further on Tuesday, reflecting an ongoing 'flight to quality', according to market participants. Traders and brokers said activity levels remained muted due to the start of the holiday season in Europe and as corporate demand is low.

Quantum assessed the Corsia Eligible Offset (CEO) at $3.80/tCO2e, down $0.18 from the previous day, and at its lowest level since June 14. "I hope the market picks up. Wonder where are the last year's buyers," said one broker.

In the OTC markets, sources pointed to offers of $3.50 for vintage 2020 and 2021 Indian wind energy credits, which were said to be competitive. A Brazilian REDD+ project also offered (non CCB certified) vintage 2013-2025 credits for as low as $6.35, according to sources.

"Yes, it's been a bit of a rocky 6 months... but our view is it's still a highly compelling asset class," said Rich Gilmore from investment fund Carbon Growth Partners in a webinar organised by CBL Markets, pointing to the market's long-term growth prospects.