01 Dec 2022
by Paul MacGregor

How can carbon marketplace and auction technology bring transparency to an ESG offering? (Guest blog by NovaFori)

Author: Paul MacGregor, Head of Sales and Marketing, NovaFori.

Organisations of all shapes and sizes and in all sectors are facing big new pressures to decarbonise. Not only is it imperative as the UK and the world aims for net zero, but also for business success. Customers now expect businesses to have firm carbon reduction targets in place and clear strategies on how to get there. Investors too are now choosing to put their money into businesses who have strong environmental credentials, and regulation is making businesses disclose their credentials.

In our recent Tech Led Decarbonisation Showcase we heard lightning talks from six companies who have developed tech solutions and platforms to aid firms in their decarbonisation efforts, from establishing baselines to offsetting, to becoming more circular.

NovaFori were one of the companies at the showcase. They explored how carbon marketplace and auction technology implementation helped bring transparency to an ESG offering. Below they tell us more about themselves and the tech.

      1. Tell us about your product or service?

Climate Impact X (CIX) Project Marketplace and Auctions are transparent platforms for high quality, verifiable, nature based carbon credits.

  1. Where did the idea come from?

CIX was formed by a consortium of SGX (Singapore Exchange) Temasek, DBS Bank and Standard Chartered Bank, all based in Singapore. CIX approached NovaFori to build the marketplace and auction platform due to our experience in building commodity marketplaces and auction platforms, which in general have high product attributes and are rich in visual information.

  1. How does your product or service help decarbonisation?

The market for Carbon Credits has always been opaque and controversial. CIX wanted to build a platform that would bring transparency and independent verification to the Carbon Credits market.

  1. Who would get the most benefit from your product or service?

Corporates who, having reduced their Scope 1, 2 and 3 emissions, find themselves with residual carbon emissions they need to offset.

  1. Can you provide an example of how one of your customers is using your product or service?

We have delivered CIX Marketplace and Auction to integrate with Verra and Sylvera to provide independent veracity and ratings on the carbon credits offered. We also integrate via our settlement bank, DBS, directly with Verra, so that credits are immediately removed once purchased and retired across all platforms globally.

  1. Can you recommend any other tools, platforms or technologies that are helping you to decarbonise?

The auction functionality is unique in the world of nature based carbon credits, and is helping with price discovery of new projects that come on-stream. NovaFori ran the world’s first carbon credit auction to time with a speech delivered by the CIX CEO at COP26 in Glasgow.

  1. What advice would you give a company looking to decarbonise?

First and foremost corporates should look to directly reduce emissions, before they look to off-set.

  1. Please provide a link to more information and how to get in touch with you.

https://www.novafori.com/case-studies
e-mail: [email protected]


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Authors

Paul MacGregor

Paul MacGregor

Head of Sales and Marketing, NovaFori