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Visualizing Brazil’s VCU Market

By May 12, 2022 No Comments

Under the VCS Program, projects are issued unique carbon credits known as Verified Carbon Units or VCUs. Each VCU represents a reduction or removal of one tonne of carbon dioxide equivalent (CO2e) achieved by a project. Verra.org is the largest VCU registry, we have downloaded and analyzed their public registry following this tutorial.

In this piece we want to understand why some companies (orange nodes) have projects (green nodes) that are not attracting a beneficiary and thus are still active (bigger grey/black nodes). While other companies’ projects are selling VCU’s (small grey nodes).

What makes certain Brazilian projects stand out to potential beneficiaries?

Using the sophisticated IntuiNet software, we are able to visualize the active Verified Carbon Units (VCU’s). What is interesting here is that the market is dominated by VCU’s generated from Agriculture Forestry and Other Land Use (AFOLU) and renewable energy projects. It seems that the renewable energy projects have a higher ratio of active VCU’s to retired VCU’s bringing us to the conclusion that credits generated from AFOLU projects are more sought after.

Below are some standard charts that provide statistics on the study:

Deep diving into the software we can quickly notice which projects are operational by looking at the data that is linked to active (black/grey bubbles) and inactive projects (grey bubbles). Moreover, the quantity of VCUS issued is displayed beside the bubbles indicating the size of the carbon units.

General thoughts

Through Intuinet, we were able to easily visualize how the Brazilian carbon credit market currently looks like. With just a few clicks, we understood which companies are actively selling VCUs and how many of their projects are still “active” in this sense, which can be quite useful for companies looking to buy these credits.

Study conducted by

Margarida Amaral : https://www.linkedin.com/in/margarida-amaral/
Miguel Anliker : https://www.linkedin.com/in/miguelanliker/
Tom Constable-Maxwell : https://www.linkedin.com/in/tom-constable-maxwell-4034a4191/

Part of the Capstone project in collaboration between Arkanna and Esade

Softwares

www.intuinet.fr, Knowledge Graph for data and network exploration

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