S&P Global Commodity Insights, a provider of energy and commodities information, announced that on Nov. 15 it will launch the industry’s first CO2 intensity estimates for diesel, gasoline, and jet fuel, together with daily carbon offset price premiums. The estimates will allow refiners, investors, shareholders, and purchasers to have a better understanding of the emissions attributes of these refined products.
The company’s Platts CO2 offset price premiums assessments will cover diesel, gas, and jet fuel in Northwest Europe, the U.S. Gulf Coast, and Singapore, and will be linked to existing price benchmarks in these markets.
Currently, the CO2 intensity price premium reflects the cost of offsetting the emissions using carbon removal credits. It is, however, expected to advance to become a differential to the basis price, based on the CO2 intensity attribute of the product.
“The carbon intensity of these regional gasoline, diesel, and jet fuel products are the next step in the evolution of carbon intensity assessments and provide an estimate of carbon emissions for the production of these key fuels,” said Deb Ryan, Head of Low Carbon Commodities at S&P Global Commodity Insights. “We believe publishing our assessments with the associated transparent methodology is key, and we will continue to evolve our methodology as technology improves.”
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The demand for transparency in carbon offsets is growing, and estimating the carbon intensity based on different products is becoming one of the ways to address that issue as different commodities have different emissions per unit.
Starting Nov. 15, S&P Global Commodity Insights will publish Platts monthly measures of gasoline, diesel, and jet fuel carbon intensity in kilograms of CO2 equivalent per produced volume of product. ( Gallons in the U.S., metric tons in Europe, and barrels in Asia.) The daily price premium assessments will be published as $/gal, $/mt, $/bbl for the US, Europe, and Asia respectively.
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