Augments Pre-existing Suite of European Low-carbon Metals and Raw Materials Assessments
NEW YORK, Jan. 8, 2024 /PRNewswire/ -- Platts, part of S&P Global Commodity Insights, the leading independent provider of information, analysis, data and benchmark prices for the commodities, energy and energy transition markets, has launched a new daily low-carbon primary aluminum price assessment for the US market, effective Jan. 2, 2024.
The new Platts US Low-Carbon Aluminum Premium (US-LCAP) will reflect any differential achieved for the spot trade of primary aluminum with total certified emissions of 4-metric-ton-equivalent (mte) or less of CO2 per metric ton of aluminum. The assessment covers direct and indirect emissions associated with aluminum smelting, typically considered by market participants as Scope 1 and 2 emissions.
Anna Crowley, global head of metals pricing, said: "We welcome this opportunity to respond to market requests for new price references in US aluminum and low-carbon metals, further expanding our benchmark offering to help market participants manage risks and opportunities associated with growing focus on carbon-reduction strategies across the global metals markets."
This launch follows consultation with the marketplace augments a pre-existing suite of Platts low-carbon aluminum and zero-carbon aluminum price assessments launched in March 2021 to complement the pre-existing Platts European price offerings for high-grade primary aluminum (P1020). Interest and trade in low-carbon primary aluminum and other metals has been on the rise, as both market participants and regulatory agencies sharpen their focus on decarbonization initiatives.
"The US low-carbon aluminum market has been maturing rapidly, but lacking standardization and transparency, according to feedback from market participants. Platts is eager to help bring both transparency and clarity to this market segment," said Christopher Davis, Americas regional pricing director for metals, S&P Global Commodity Insights.
Per the Platts low-carbon aluminum methodology, emissions must be certified by an internationally accepted, independent organization. Market participants are expected to supply proof of such certification upon request. Platts continues to invite feedback regarding certifiers currently working with aluminum producers and the industry, as well as feedback on guidelines for a transparent publication process.
Trade in aluminum products using offsets to reduce overall emissions profiles, such as credits sourced from voluntary carbon markets, are not considered for inclusion in this assessment.
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SOURCE S&P Global Commodity Insights