Empati’s Post

According to the latest report from BloombergNEF, success of the global #carboncredit market hinges on whether confidence among corporate buyers can be restored. The analyst firm claims that the carbon credit market could be worth over $1.1tr annually by 2050 if corporates' confidence in purchasing credits can be restored in 2024 and beyond. Stringent standards, guidance and robust oversight is needed to shed the sectors “Wild West” reputation. LACONIC couldn’t agree more. The ability to harmonize, reference, and exchange carbon, via a robust immutable #datataxonomy, creates trust and ensures compliance. Our SADAR NCM global data management and interchange platform for the entire #carbonmarket does exactly that. Read more here: https://lnkd.in/gNx7EtmS #Naturalcapitalmonetization #SADAR #Climatechange #NetZero #ai #ml

"Sustainable data" - a greenwashing fallacy? This is a fascinating piece and a paradox which wider tech, and indeed any business which relies heavily on data will have to face up to: ◽ That the growth of data and associated centres are expanding far more quickly that traditional methods of preventative sustainable can keep pace with ◽ That as a result, data centres have become the world's second largest source of greenhouse gases  ◽ That there is no path to a sustainable future without collaborative agreement and action on the impact of gathering, sending and especially saving data https://lnkd.in/eM5_UuiX

Hello! Last week, the index showed minimal change, resulting from two significant but opposing corrections in key markets. After a period of bearish trends, we witnessed a welcome rebound in the EUA prices. Conversely, the Chinese carbon allowance market, which had been scaling new heights, underwent a correction. This seems primarily influenced by the market's reaction to the approaching compliance deadline, bringing a counterbalance to the EU's rise. Stay tuned for more updates! C2Zero SparkChange Monash Centre for Financial Studies Roger Cohen Jan Ahrens Nga Pham, CFA. Bei Cui, PhD Aditya Shankar #carbonpricing #carbonemissions

🧠 How will AI analysis on voluntary carbon price drivers affect your business? 🔍Insights Revealed🔍 Background: Viridios AI conducted a study on the voluntary carbon offset market in 2023, which revealed that the average price of voluntary offsets rose by 20% from the previous year. Key Takeaways: • Over the past 12 months REDD 2022 vintage high impact credits continue to trade at a 16% premium • Investors are placing a higher value on removal credits developed under the ARR methodology situated in Latin America and Asia 💡Crucial Implications💡 Impact: The new development impacts large corporations and the financial sector the most, as they are the biggest buyers and participants in the voluntary offset market. Strategize: Companies should consider investing in high value credits to meet their net-zero emissions targets, or even explore selling voluntary offsets to generate additional revenue. 🤔 Do you think this development will have the same implications for small and medium-sized businesses? 💬 #ESGupdates #artificialintelligence #carbonoffsets #carbonmarkets #Sustainabilitynews https://lnkd.in/gw8e6W5w

Carbon Markets 2.0: Envisioning the Future with Enhanced Liquidity and Smart Contract Adoption As the climate crisis sharpens, the evolution of carbon markets stands as a critical aspect of global climate strategy. Two paramount factors, enhanced liquidity and smart contract adoption, are poised to shape the future of carbon markets significantly. Efficient Price Discovery: Enhanced liquidity facilitates a more accurate and transparent price discovery mechanism. With smart contracts automating transactions, the price of carbon credits will mirror real-time market conditions, ensuring that prices accurately reflect the cost of emissions. Broadened Market Participation: The adoption of smart contracts could lower entry barriers, encouraging a diverse range of participants. More participants translate to enhanced liquidity, fostering a more dynamic and competitive market environment. Reduced Transaction Costs: Smart contracts automate the trading process, significantly reducing transaction costs. Lower costs could stimulate market activity, further enhancing liquidity. Robust Compliance and Verification: Integrating smart contracts with digital Measurement, Reporting, and Verification (dMRV) systems can automate compliance checks. This integration ensures that emissions reporting is accurate and verifiable, fostering trust among market participants. Recent initiatives, like the blockchain-based carbon trading platforms developed by IBM and Energy Blockchain Lab, and the successful piloting of dMRV systems, underline the growing momentum towards smart contract adoption and enhanced liquidity in carbon markets. Looking ahead, these advancements are not merely incremental; they signify a leap towards a new paradigm of carbon markets. A paradigm characterized by transparency, efficiency, and inclusivity, propelling carbon markets from being a niche segment to a mainstream, impactful mechanism for global climate action. The journey to Carbon Markets 2.0 beckons a collaborative approach, where technologists, policymakers, and market stakeholders come together to harness the full potential of enhanced liquidity and smart contract adoption. This collaborative ethos will be the crucible for innovation, enabling a carbon market that is not only robust but also instrumental in driving meaningful climate action. As we stand on the cusp of this new era, the fusion of enhanced liquidity with smart contract adoption doesn’t just redefine carbon markets; it propels them as powerful tools in the global effort to combat climate change. The future of carbon markets appears not just promising but pivotal, with the potential to catalyze a global shift towards a low-carbon, sustainable economy.

The realm of carbon trading is at an exhilarating juncture, as smart contracts and emerging clean technologies intertwine to unlock unprecedented potential. The synergy between these realms is not just transformative, but a linchpin for a robust carbon market ecosystem. Automated Carbon Credit Transactions: Smart contracts can automate the issuance, trading, and retirement of carbon credits based on real-time data from clean technology operations. This automation reduces transaction costs and accelerates the carbon trading process. Transparent Emissions Data: Emerging clean technologies equipped with sophisticated sensors can provide accurate, real-time emissions data. When integrated with smart contracts, this data can trigger automatic transactions, enhancing transparency and trust in the carbon market. Cross-Border Carbon Trading: Smart contracts can streamline cross-border carbon credit transactions, fostering a globally integrated carbon market. This is crucial as nations rally to achieve their climate goals under the Paris Agreement. Incentivizing Clean Tech Adoption: Transparent and efficient carbon markets, propelled by smart contracts, can incentivize the adoption of clean technologies by ensuring fair compensation for emissions reductions. Real-Time Monitoring and Compliance: The amalgam of smart contracts with clean tech enables real-time monitoring of emissions, ensuring compliance with regulatory frameworks and bolstering market integrity. Recent ventures, such as the blockchain-based carbon trading platform launched by IBM and Energy Blockchain Lab, underscore the growing recognition of smart contracts' potential in carbon markets. Moreover, the proliferation of cleantech startups focusing on carbon monitoring and reporting is a testament to the evolving narrative. The narrative of smart contracts and clean technologies is an emblem of innovation, showcasing the boundless possibilities when technology converges with climate action. As we stand at the cusp of a low-carbon economy, this synergy doesn’t just signify a leap in carbon trading mechanics, but a stride towards a sustainable and economically viable climate solution. The road ahead beckons a collaborative ethos among policymakers, technologists, and market stakeholders to harness this synergy fully. By fostering a conducive ecosystem for smart contracts and clean tech to thrive, we are not just reshaping carbon markets, but redefining the global response to climate change.

Entering 2024 prompts reflection on the enduring challenges of shaping a brighter future. For financial institutions, that play a significant role in shaping the future of the world, the awareness of imminent ESG challenges is indispensable. Time accelerates, and without decisive action, these challenges risk persisting for years, potentially reaching a point of irreversibility. At Lynxai, our commitment to crafting a better tomorrow fuels significant efforts in 2024 to enhance a product addressing a sustainability concern that has existed for years - global warming due to the emission of pollutant gases into the air. The Net-Zero Banking Alliance's dedication to achieving Net-Zero by 2050 and maintaining temperatures below 1.5ºC above pre-industrial levels resonates with Lynxai's mission. Our continually refined product empowers banks to monitor their path to Net-Zero, set diverse milestones, and simulate the impact of new investments on specific funds or entire portfolios. It stands as a comprehensive portfolio screening tool, safeguarding against the risk of failing to meet set milestones. In our relentless pursuit of excellence, we actively seek valuable feedback and aspire to develop our tool in collaboration with NZBA members. This collaboration ensures a customized solution, precisely tailored to address the unique challenges of each institution. Acknowledging the diverse factors that set each institution apart from its peers, we are committed to crafting a solution that precisely meets their distinct needs. If you are interested in knowing more, feel free to reach out!

Carbon Markets Part 4 Let’s wrap up our preliminary tour on carbon trading with three pieces of information that might gain relevance sometime in the near future: The annual US National Climate Assessment says the US experiences a climate disaster costing at least $1 billion every three weeks on average — totaling nearly $150 billion a year. Compared to the rest of the world, the US is faring slightly better in achieving its carbon-reduction goals — emphasis on slightly. US emissions were about 17% lower in 2021 than 2005, the report found, marking a roughly 1% reduction each year. But that needs to jump to an average of 6% annually by mid-century to hit national targets, the report says (via Daily Upside). The Tokyo Stock Exchange: Based on the knowledge and market operation experience gained from the “Technical Demonstration Project for Carbon Credit Market” commissioned by the Ministry of Economy, Trade and Industry (METI) in FY2022, Tokyo Stock Exchange, Inc. (TSE) officially has opened the carbon credit market and begun trading on October 11th, 2023 (via the Tokyo Exchange Group). Singapore Stock Exchange: Climate Impact X (CIX) will be a Singapore-based global carbon exchange and marketplace that aims to scale the voluntary carbon market. CIX will connect an ecosystem of partners, leveraging satellite monitoring, machine learning, and blockchain to enhance transparency, integrity and quality of carbon credits (via the Singapore Exchange).

Global #CarbonMarkets and carbon taxation schemes are rapidly growing and evolving. In the picture below one can see that #CarbonMarkets are rapidly expanding, now influencing one-third of the global population. These markets are: 📉 Incentivizing companies to #decarbonize 🚴♂️ Shifting consumer behavior 💵 Funding low-carbon technologies With 14 new markets in development and increasing decarbonization efforts, #CarbonMarkets are set to become a crucial #strategic component for every company in the next 2-3 decades.   👉 Market dynamics and regulatory frameworks vary across industries and regions. 🗺 In navigating the complexities of carbon schemes, CO2-intensive companies face a multifaceted challenge: they need to decarbonize their operations and supply chains while safeguarding profitability in a continuously evolving regulatory landscape. 💡 Read my latest article on how a 𝐩𝐫𝐞𝐬𝐜𝐫𝐢𝐩𝐭𝐢𝐯𝐞 𝐀𝐈-𝐛𝐚𝐬𝐞𝐝 #𝐂𝐚𝐫𝐛𝐨𝐧𝐂𝐨𝐩𝐢𝐥𝐨𝐭 would enable businesses to unlock synergies between #sustainability and #profitability to boost long-term value creation. 🔗𝐋𝐢𝐧𝐤: https://lnkd.in/ed8yp9Xb #CarbonCopilot #AI #ETS #CBAM #Sustainability #CarbonPilot #Manufacturing #Retail #LifeSciences #Energy #Utilities #EUGreenDeal

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