Buy to Retire – opens VCM Offsetting market
The much awaited ‘Buy to Retire’ feature on CTX was launched in May and it’s a ‘future proofing’ solution for buyers and sellers. Under the CTX model buyers can purchase from any of the multiple Credit Standards listed on CTX without the need for a Registry account, then CTX will do the retirement and issue certificates for free – included in your 2% buyers’ fee. Because the Credits are escrowed to remain listed on CTX, you know the price and delivery or offset is guaranteed, so reseller brokers, platforms or sustainability consultants can ‘back-to-back’ trades with certainty of margins.
Where certain sellers have been concerned over the ‘recycling of credits’ into Crypto, Tokenised or Hybrid credits or Futures – which CTX does none of – they can now elect to list them as buy to retire.
CTX hopes to have at least 12 Credit Standards listed from at least 9 Registries (by the end of 2023, but in reality, how many Registry accounts can buyers afford or justify? Assuming the Registry can pass or retain the ‘onboarding’ process of bigger trading houses or institutions. (N.B. retention might be more difficult for account holders in one whose new parent company recently filed accounts showing over $200 Million in losses for 2022).
For this sector to achieve the stated goals of $2 Billion per year next year, we need the technological infrastructure that GEM and CTX can already deliver, rather than newly created bank driven controls.
CTX celebrates 500th member, 15 years, & over current 230 listings.
It was a nice surprise to see a client setting up an account number 506 in mid-May, and even better to see the recent Tsunami of Listings – especially of Gold Standard and Verra VCS credits.
On CTX credits are sold and get retired constantly – so cracking 230 active listings was short lived 😊
May ’23 trades were across the entire range; evidenced by the last 3 trades in the index on midday on UK Bank Holiday Monday : 20,000 Credits @ $11.00 : 900 Credits @ $1.53 : 100 Credits @ $2.55
At CTX, we know that little fish are sweet, but big tuna feeds the town, and our global CTX village is getting fed daily. Buyers have a variety and prices to fit any budget. Sellers have confidence and service.
We aren’t perfect, of course, but in life and business we live by the following: “Unless you strive for perfection, you accept mediocrity.”
City & Financial Week 2023 – what did we learn?
When our CEO was invited to speak at the London City Week ESG and Climate Summit, it was the who’s who of financial and investment houses in the UK and USA attending. CTX took a stand and punched above its weight for three days, but wow – so much talk and so little action. Still pumping out the farce of ‘Net Zero 2050’ like anyone there making the ‘pledges’ will be alive (or working). Our CEO & Founder Wayne Sharpe called out a major sponsor on stage – who could offset their global (disclosed) carbon footprint via CTX for 0.0003% of $36 Billion revenue. We learned there is no path to Net Zero unless you start the journey with action – ZERO may be unachievable for most companies, but for corporations and nations it is not possible without new projects that need funding via offsets.
We also learned that the elusive search for ‘Perfect Data’ is just a convenience excuse for inaction. After several live demonstrations done to companies onsite, we believe many will start on a genuine path in coming months with CTX helping to deliver.
Media Shemeidia – dark sectors behind recent stories?
Anyone reading the exponentially vitriolic reports in The Guardian might think that the Voluntary Carbon Market is suddenly the new Covid. As the CEO of Verra VCS, the legendary David Antonioli, threw himself on his sword in the face of relentlessness, and in some cases blatantly false headlines and reporting, we wonder how much digging was done by those then propagating that at least exaggerated information.
It seems the relentless pursuit of ‘clicks’ is still gaining momentum, whereby quoting themselves they hope repetition makes it true = more clicks
Now while few leap to South Pole’s defense after a decade of milking projects for profit, despite their ‘profit mantra’, they’ve delivered more too projects than anyone in history. Of course, few of the ICROA founding ‘brokers/developers’ are or would be CTX members for good reason, and a decade of history – cannot be undone in a newsletter, but it’s rather sad to see the constant undermining of credibility of the VCM by organizations who have no credibility they did not pay for.
Certain media, particularly The Guardian, are also attacking Fossil Fuel companies such as Shell or Chevron that are at least doing something even if imperfectly, whilst totally ignoring those taking zero action (we are the last people on earth to normally defend them).
For example, we wonder why they are not targeting ExxonMobil (and others)? Especially when a simple google search delivers this “The Climate Action 100+ Net Zero Company Benchmark finds that ExxonMobil meets none of the Benchmark’s targets criteria – ExxonMobil does not have either an ambition to reach ‘net zero’ or net zero-aligned short, medium and long-term GHG reduction targets which cover its emissions”. The Guardian journalists don’t have Google? Or is there an agenda to undermine the credibility of the Voluntary Offset Market?
Since the TSVCM was formed by the IIF and a major UK bank , in our view it’s been intent on undermining the credibility of the existing VCM market whilst pretending to want to grow it. The original and supposedly independent research by McKinsey of the IIF failed to find any refence to Carbon Trade Exchange (CTX), so should we assume they also do not have Google? Is this a ‘TaskFarce?’
Do we really need a ‘New World Carbon Order’ that’s created by Banks?
GEM and CTX already tick all the boxes (see below).
Paris Article 6 – the future of Carbon Trading
The Paris Agreement with over 200 Nations signed to it, makes it clear that $ trillions of dollars must change hands via carbon markets to have any hope of staying under two degrees Global Warming. However, decentralized and via Registries run by the nations, not the UN or World Bank. The newly created Carbon Credits used by developed nations as offsets are ITMOs, and they must be originated in the same manner as Voluntary Credits are today. Produced by projects in Underdeveloped, Developing and Small Island Nations and then approved as ITMOs. The VCM markets must scale, but can it in the face of these self-serving headwinds via media?
Despite the issues in the media articles Verra VCS is not corrupt or full of broken projects or fake credits, and one flawed project does not destroy 15+ years of positive environmental impact – based on some journalist’s views (paid to write?). However, if you as a buyer or seller, do lose confidence in a Credit Standard or Registry, as a project you can always move your project to another Registry or Credit Standard. A large quantity of Voluntary credits under various Standards are already former CDM projects that have been converted. Asa buyer you can buy alternatives or do as CTX suggests and buy a portfolio.
Carbon offsetting is not only about mitigating GHG emissions. It goes beyond protecting the ecosystems, creating sustainable job opportunities, as well as improving the quality of life for communities, which is exactly why CTX has introduced all the new symbols to highlight individual project diversity not just prices.
And when the new National Registries appear this year and next, CTX will host ITMOs as well.
Don’t stop believing!
Proudly supporting gender equality and diversity at CTX
Earlier this month, central London played host to Women In Carbon, to celebrate and empower the amazing women working in the carbon industry. As a company with over 50% of its workforce consisting of women, Carbon Trade eXchange sponsored this fabulous event and our CTX ladies joined over 100 female industry participants and leaders to learn and network. It was an inspiring evening that fostered collaboration and created new meaningful connections. We are grateful to have had the opportunity to sponsor this event, and will active supporters in future.
Editors Note: Having been finalists in the recent UK FinTech Diversity Award in April this year, next up in June 2023 Carbon Trade eXchange (CTX) is also Finalists in 4 of the European Fintech Awards.
Investment Tech of the Year
Diversity & Inclusion Award
Rising Star (Jennifer Shung)
Innovator of the Year (Wayne Sharpe)
Wish us luck…
Projects of The Month
UNFCCC CDM (Transferable/CTX UN CERs)
Sapphire 49.5 MW Wind Farm Project – Pakistan (Asia) (3 SDG’s)
310,883 credits at $2.55 USD per unit
The project aims to achieve (GHG) emission reductions by utilizing wind resources for electricity generation through the construction of a wind farm with a total capacity of 52.8 MW. Prior to the start of implementation of the project activity, The WAPDA electricity grid was dominated by fossil fuels and there was no power generation unit at the site of the proposed project. The wind farm will contribute to solve Pakistan´s acute energy crisis by reducing the number of black-outs and brown-outs experienced by other grid users, which can help to improve the economic performance of other businesses connected to the grid. The project will offer job opportunities for local people during the construction phase and the operational period and thus achieve economic growth in the region.
This project is the first of its kind in Pakistan where foreign manufacturer wind turbines are used, pioneering the promotion of this technology to other wind power projects.
*N.B. Australian buyers must hold an AFSL to take delivery, but not cancellation.
India Organic waste management programme -VPA01 – India (Asia) (3 SDG’s)
20,000 at $9.45 USD per unit
The project contemplates the installation of biogas plants at household, community, and institutional level where firewood, fossil fuel and grid electricity were the energy source in Kerala, India. The waste management biogas plants will produce energy for thermal and electrical applications and will yield many other benefits.
The project reduces air and water pollution caused by the disposal of organic waste. The waste management by-products will be used as bio-fertilizer replacing the chemical fertilizers. The project will also abate carbon dioxide emissions through replacement of the use of fossil fuels and forest wood for cooking and/or electricity generation. The displacement of fossil fuels and forest-wood will directly lead to the reduction of soil erosion and maintenance of ground water. The project generates employment opportunities for the rural and semi urban population. There will also be an improvement on sanitation through better waste management. Families will save on fuel cost and will have more income to spend on other basic needs. Labour among women who walk long distances to collect firewood is also reduced. Farms also become self-sufficient in power and monetize their waste. This project incentivizes other producers to invest in a biogas plant for their operations and showcase a success effort to curb CH4 emissions leading the way for the Indian dairy and livestock sector to be environmentally sustainable.
Bucakkisla hpp Run-of-River hydro project – Turkey (Asia) (3 SDG’s)
62,551 credits at €1.50 euros per unit
The Plant will be built on the Göksu river producing electricity for the national grid hence reducing Turkey’s energy deficit. The project will demonstrate the viability of grid connected run-of-river projects to facilitate energy security, improve air quality, support and development of alternative sustainable energy and improvement of the local livelihoods.
The project replaces (CO2, CH4) emissions and other pollutants (SOX, NOX, particulate matters) occurring from extraction, processing, transportation and burning of fossil fuels for power generation connected to the national grid. Reduction of the consumption of these fuels, enhances the conservation of water, soil, plant, and animal ecosystems. Rural development is also enhanced in the areas around the project site by providing infrastructural investments to these remote villages. The project contributes to local employment during the construction and the operation phase of the small-scale hydro project and result in alleviation of poverty and unemployment. Construction materials for the project will also be preferentially sourced locally.
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CTX Members – if you have any questions, please email operations@ctxglobal.com
Thank you all for your contributions to help save the planet for our future generations.
