Sylvera and ICVCM report on carbon credit creation costs
Sylvera, in partnership with the Integrity Council for the Voluntary Carbon Market (ICVCM), released a report detailing the median levelised cost of creating a carbon credit, based on data from 53 projects. The report found significant cost divergence across project types, ranging from $6 for REDD+ credits to $185 for biochar credits. These costs are influenced by capital expenditure (CapEx) and operating expenditure (OpEx), with the cost of capital identified as a major source of uncertainty, particularly for nature-based solutions. For instance, a change in the cost of capital from 10% to 15% could increase ARR project costs by 36.84%. The study aims to enhance transparency for buyers, developers, and policymakers regarding genuine delivery costs and fair benefit-sharing.
Read the original at Sylvera →This summary was written by carbon.fyi from the reporting linked above. It is not a quotation; cite the original source.