06.06.2022

Climate Impact X and Puro.earth Launch New Carbon Credit

06.06.2022
Shanny Basar
Climate Impact X and Puro.earth Launch New Carbon Credit
  • Strategic partnership to increase access to quality nature- and technology-based carbon removal credits, addressing growing demand in the voluntary carbon market
  • Deal marks the arrival of Puro.earth’s presence in Asia and highlights CIX’s expertise in providing nature-based solutions, while demonstrating the combined ability of the partners to drive market innovation and enable more portfolio diversity
  • Supports the development of dynamic carbon credit portfolios – as articulated by the Oxford Offsetting Principles – which progressively increase the volume of long-term carbon removal and storage to support reaching the global net zero emission balance earlier

Climate Impact X (CIX), a global marketplace and exchange for quality nature-based carbon credits, and Puro.earth, the world’s first marketplace, standard and registry for science-based carbon removal credits, are joining forces to spur innovation in the voluntary carbon market through a strategic partnership.

The collaboration enables a first of its kind blend of nature- and technology-based removal credits in a single solution, meeting demand for portfolios that map to The Oxford Principles for Net Zero Aligned Carbon Offsetting. The principles recommend a progressive increase in the volume of long-term carbon removal and storage in the blend of credits used by corporates to reach net zero.

Together, the partners will help to address growing imbalances in demand and supply in the voluntary carbon market[i], by making it easier for businesses and financial institutions globally to access new and emerging credit types which remove carbon from the atmosphere.

CIX, jointly established by DBS Bank, Singapore Exchange (SGX Group), Standard Chartered and Temasek, brings to the partnership trusted nature-based solutions that protect, restore and grow natural ecosystems such as forests, mangroves and coastal habitats.

“In a complex and fast evolving carbon market, businesses seek products that are designed to be net zero aligned and that can effectively address tomorrow’s demands. An appropriate mix of nature- and tech-based solutions helps to facilitate this. We need a blend of solutions to restore ecosystems as well as deliver broader socio-economic benefits for local communities,” said Mikkel Larsen, CEO of Climate Impact X. “Our partnership with Puro.earth helps to unlock new supply by sending a clear demand signal. It is a unique collaboration that will help drive the creation of a science-aligned solution that reduces frictions for businesses and institutions looking to incorporate a blend of curated credits in their carbon portfolios.”

In partnership with Nasdaq, Puro.earth offers technology-based carbon removal certificates verified by an independent third party. Puro.earth has pioneered the development of new carbon removal methodologies including biochar, carbonated building materials, and geologically stored carbon. Leveraging the new dynamic carbon credit portfolios will help more Asian companies on their pathways to carbon neutrality and net zero. Puro.earth’s presence in Asia will also make it easier for suppliers of carbon removal projects in the region to get credits issued under the Puro Standard, the first carbon removal standard for engineered carbon removal methods in the voluntary carbon market.

Antti Vihavainen, CEO of Puro.earth, said, “Permanent carbon removal projects are in their infancy and therefore supply is very constrained. At Puro.earth, we are looking to change this. A ready-made high-quality portfolio with an annually increasing share of permanent removal will prove companies progress on their carbon net zero pathway. Puro.earth is the multi-methodology standard that focuses on carbon removal with a long-term sequestration guarantee. We will continue to innovate and, together with leading scientists and organizations, to enable the best local ways to remove carbon in the APAC region.”

Professor Myles Allen of the University of Oxford, the Chairman of Puro.earth’s Advisory Board and co-author of the Oxford Principles, said, “Carbon removals with durable, meaning geological time-scale, storage will inevitably play a role in stabilising atmospheric concentrations of carbon dioxide, and potentially even reducing them after net zero is achieved. To support this transition, users of offsets must increase the portion of their offsets that come from carbon removals, rather than from emission reductions, ultimately reaching 100 per cent carbon removals with durable storage by mid-century to ensure compatibility with the goals of the Paris Agreement. Creating demand for carbon removal offsets today will send a signal to the market to increase supply of this scarce but vital resource.”

Source: Climate Impact X

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