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Overview

The pCER Index measures price signals for primary market Certified Emissions Reductions (CERs) under the United Nations Clean Development Mechanism (CDM). Relevant to both carbon market buyers and sellers, the index brings price transparency to the opaque primary CER market.

Detail

The pCER Index is constructed from a survey that asks participants what the appropriate price should be for carbon credits in the CDM project cycle according to a sequence of risks. These range from no risks to those of failure to achieve a) project validation, b) the foregoing plus credit registration, and c) the foregoing plus credit issuance.

IDEAcarbon's questionnaire serially asks what price market participants would pay at most (or be paid at least) for credits under the above scenarios. The pCER Index is derived from a survey of respondents including project developers, investment banks, utilities, industrials and multilateral institutions. Access to the pCER Index entitles subscribers to more than 18 months of data, predating and succeeding the economic crisis.

Use Cases

• Carbon Originator: The pCER Index elucidates pricing movements on a weekly basis, which helps originators understand others' disaggregation of pricing risks, make competitive bids, and reference past trends.
• Broker/structurer: The pCER Index informs the economics of structured transactions and an independent market-wide pricing sentiment.
• Strategist: The pCER Index is a market assessment of the rate-of-return on primary market origination. Useful in conjunction with sCER levels, the Index assists in closing decisions for primary market deals