Fixing Climate Change with Capitalism

Introduction to Empati Carbon Alpha and Our Mission

In today's rapidly changing world, the concentration of CO2 in parts per million will determine the future of our planet. At Empati and through our subsidiary Carbon Alpha, we believe that capitalism can be harnessed to mitigate climate change. Our mission is to reconfigure price signals so that capital markets can fix climate change. To achieve this, we develop the technology, platforms, and standards to create and trade fungible carbon abatement on a new, legitimate carbon market.

The Problem with Current Carbon Markets

Climate change mitigation is often viewed as a cost rather than a profitable endeavour. Current carbon markets are inefficient and lack the necessary price signals to drive effective climate action. These markets primarily operate with non-fungible carbon units, which creates a fragmented and less impactful approach. To unlock the potential of carbon markets, we need a standardised, fungible carbon tonne.

Our Innovative Solution

At Carbon Alpha, we collaborate with global standard-setting organizations to develop standards and methodologies that transform carbon abatement into a fungible, flow-based, granular unit that remains consistent over time. We aim to create new carbon-based financial instruments that link carbon markets to other global markets. These instruments will reconfigure price signals, enabling capital markets to address climate change effectively.

The Empati Carbon Abatement Standard

Our approach is underpinned by the Empati Carbon Abatement Standard, a certification framework for quantifying the carbon abatement achieved through the displacement of electricity generation from fossil fuels. The standard emphasises key principles such as fungibility, impartiality, data-driven methodologies, probabilistic certainty, and traceability, ultimately delivered through a tokenised solution, the CO2a token (we will discuss the intricacies of this in a follow up article).

• Fungibility: Ensures that one unit of carbon abatement is equivalent to another, allowing for standardised trading.
• Impartiality: Empati does not sell or broker CO2a tokens, maintaining a neutral stance.
• Data-driven Approach: Utilises high-frequency sensing and historical data to calculate carbon abatement.
• Probabilistic Certainty: CO2a tokens are generated only when they satisfy the P90 requirement.
• Traceability: Every token can be traced back to its source through the CausalTrace platform

Technology and Platforms

Our technology and platforms are built on over 100 man-years of research in Autonomous Agents and Provenance Tracking, combined with 300 man-years of collective experience in financial markets. This extensive expertise drives the development of innovative financial products and the deployment of AI-powered autonomous agents. These agents assist traders, market makers, exchanges, and financial institutions in operating within the carbon market and extracting value from the signals it generates.

Impact of Carbon Alpha

The pricing signals exposed by our technology will enhance climate change mitigation efficiency by at least 400%, while also accelerating AI-induced productivity, thereby boosting GDP. This will facilitate the extensive deployment of carbon abatement solutions in the Global South and promote more rational transition strategies. Carbon Alpha is creating a price signalling environment to maximize profits through self-interest for countries, companies, equity, and debt investors, influencing the value of $3Q worth of securities, FX, equities, and bonds.

Conclusion

At Carbon Alpha, we are committed to fixing climate change with capitalism. By integrating the Empati Carbon Abatement Standard and leveraging advanced technology, we aim to create a scalable, efficient carbon market that incentivises climate change mitigation through profit-driven mechanisms. Join us on this journey to transform carbon markets and drive meaningful action against climate change.

Call to Action: Follow Empati to stay updated on our progress and learn how you can be part of this transformative journey. Let's harness the power of capitalism to combat climate change together.

Contact Information:

Stewart Dodd (Chief Executive Officer): sdodd@empati.ai

Mark Eastwood (Chief Commercial Officer): meastwood@empati.ai

Website: www.empati.ai