The Commercial Facilities Carbon Fund (CF2) has introduced an unprecedented solution, harnessing proprietary digital infrastructure to acquire and monetize carbon credits from emissions reduction projects within commercial facilities. This groundbreaking approach, equipped with digital safeguards to minimize risk, enhance efficiency, and enable scalability, is set to reshape the carbon credit landscape.
As Asad Sultan, CEO of Verdana and EcoConsortium, explained, “Our digital platform and interconnected digital infrastructure allow us to mitigate risk in carbon credit advance purchase and sale, effectively capitalizing on the offset between buyers and sellers. This scalability makes CF2 a highly adaptable investment program.”
What sets CF2 apart is its utilization of the Verdana digitized platform. This platform, tailored to process, value, and manage carbon credits as an asset class, integrates real-time data and dynamic adjustments. As a result, CF2 emerges as a market maker, offering precise pricing for carbon credits in targeted markets.
CF2’s multifaceted strategy encompasses various components:
- Digitized Platform and Methodologies: CF2’s asset pool comprises commercial facilities, EVs, and renewables asset classes. The Verdana digital platform streamlines credit origination to sale, integrating with UNFCCC CDM methodologies to expedite certification through analytics and variance analysis, reducing certification timelines and costs.
- Accurate Pricing and Acquisition: Maintaining control over credit processing and costs, CF2 ensures precise pricing. The fund incorporates capital costs from funding partners to facilitate forward carbon credit purchases at prevailing market rates.
- Innovative Payment Structure: CF2 introduces a distinctive payment structure, offering project owners an initial payment of 10-20% based on estimated credit inventory. The remaining balance aligns with actual annual carbon credit delivery, ensuring accuracy through UNFCCC CDM compliant energy efficiency programs.
- Market Positioning and Risk Management: Through collateralized carbon credits (CCOs) upheld by digital integrity, CF2 mitigates market risk, reinforcing its market stance. A 20% performance carry on capital gains from the market risk portion incentivizes optimal performance.
- Forward Sales and Market Expansion: Aligning fund duration with purchase programs, CF2 enables forward sales to industries seeking credible offset credits. Initial market rollout encompasses Malaysia, Singapore, UAE, and KSA, with expansion contingent upon growth.
- Efficacy and Collaboration: CF2 demonstrates effectiveness within smaller markets, fortified by support from USAID, ADB, and development NGOs, bolstering credibility and expanding the market.
- Regulatory Structure and Technology Platform: Operated under a Singapore-based VCC regulated by MAS, CF2’s operations are fortified by Hatcher’s Venture-as-a-service platform.
Prakash Shukla, managing partner of Wayfare Ventures, lauds CF2’s innovative approach, stating, “What we find exciting about CF2 is the adoption of an important new segment — the commercial facilities asset class — into the carbon credit marketplace through innovative technology, aligning with our fund’s sustainability objectives.”
With its trailblazing methodology, CF2 is poised to redefine the trajectory of carbon credit acquisition, catalyzing sustainable growth within the commercial sector. For a comprehensive understanding, access the white paper on CF2 here: CF2 White Paper
For inquiries and further information, email contact@ecoconsortium.io.
