Green Finance Technology Powerhouse

The green markets are currently navigating through transformative times, with the ongoing implementation of Paris Agreement Article 6 highlighting significant challenges. The lack of digitalization and adherence to new standards in existing carbon registries has eroded trust at a time when new green markets are expanding rapidly. Additionally, the inherent issues of scalability and insufficient integration with financial markets are exacerbating the volatility of carbon prices, casting doubts on the future efficacy of the Voluntary Carbon Market (VCM).

In response to these obstacles, governments worldwide are recognizing the necessity for regulatory intervention to ensure the integrity and success of the VCM under the evolving conditions stipulated by Paris Article 6. There is a palpable shift towards establishing new financial instruments designed to meet stringent technical requirements, including thorough documentation and asset lifecycle management. This move, coupled with an increased demand for transparency in fund utilization, aims to restore faith in green initiatives and facilitate a smoother transition towards a regulated, transparent, and scalable green finance ecosystem.

Despite the challenges, the demand for carbon offset solutions is expected to grow rapidly!

The SFI System interlinks the carbon credit registry, financial contracts, and carbon exchange and settlement system in one comprehensive platform.

We digitize the entire value chain from Green project initiation and management to validation and verification, including smart meters and satellite pictures for MRV, issuance of appropriate financial instruments, trading, and life-cycling of financial instruments and carbon credits.

Our technology allows for massive automation, incl. algorithmic validations, leading to substantial cost benefits for the entire ecosystem. Digitization and automation simplify and accelerate coordination between the involved entities, lowering the risk of delays and cash flow issues for developers.

To best prevent greenwashing and achieve high-quality carbon credits, all relevant data need to be available to be reviewed and verified by buyers, governance bodies, NGOs, rating agencies, etc. Our technology captures and logs every step along the entire value chain in an immutable way, i.e. who has done what, why, and when. Therefore, it establishes a secure and immutable source of truth for carbon credits and prevents misconduct, additionality, and double-counting.

Besides preventing greenwashing, it’s also important to prevent financial fraud. Similar to the EU Green Bond Regulation the financial allocation of funds has to be made transparent and reported annually.