We designed the Virtual CBAM Certificate (VCC®) to address market concerns surrounding the complexity of EU CBAM certificate procurement. The VCC® enables companies to fix EU CBAM costs today, providing greater certainty over cost exposure while retaining flexibility.
With the VCC® businesses can secure a fixed price of EU CBAM certificates ahead of time, reducing exposure to fluctuations in carbon prices linked to the EU ETS.
This approach helps companies hedge against carbon price increases tied to the EU ETS market.
The CBAM Certificate Index (CCI®) is Redshaw Advisors' proprietary index designed to track the prices of EU CBAM certificates over time.
Built to provide transparency and market insight, the CCI® reflects weekly and quarterly price averages for EU CBAM certificates, helping businesses understand compliance costs and market trends.
The CCI® calculates what the EU CBAM certificate price would be today, and historically, as if EU CBAM certificates had always been available.
This is done by averaging the closing prices of EU ETS allowances from the auction platform, following the procedures set out in Regulation (EU) No 1031/2010, for each calendar week or quarter.
The cost of EU CBAM certificates is directly linked to the cost of EU Allowances (EUAs), which represent the right to emit one tonne of carbon dioxide equivalent (CO₂e) under the EU Emissions Trading System (EU ETS).
However, auction prices represent just one point of price discovery. EUAs are actively traded on the secondary market between 7am and 5pm GMT on weekdays, meaning auction prices are heavily influenced by market activity.
As a result, the CCI™ considers not only auction closing prices, but also price movements and market drivers in the secondary market. This broader view helps assess where EUA prices, and by extension, EU CBAM Certificate prices, are likely to go.
With the VCC® you can:
