The partnership paves the way for a new sector in green finance
London, San Francisco, 01 October, 2024 – ZERO13, the COP28 award-winning international carbon exchange, registries and services orchestration ecosystem, and a subsidiary of GMEX Group (‘GMEX’), has announced a strategic partnership with Secured Carbon, an innovator in originating US clean energy tax credits, to explore the viability of issuing and selling clean energy tax credit futures contracts. The partnership will combine Secured Carbon’s tax credit platform with ZERO13’s expertise in the issuing, listing, sale and settlement of derivatives contracts. The initiative will support the U.S. government’s objectives under the Inflation Reduction Act (IRA) by providing increased availability of capital in the early stages of IRA eligible projects.
In creating clean energy tax credit futures, these firms will provide the benefits of digital derivatives contracts, including transparency, data dependability, and fast settlement.
Key Objectives of the Partnership:
- Clean Energy Tax Credit Futures: The alliance intends to introduce the first tokenized and listed IRA tax credit future providing a seamless platform for trading and settlement. This will simplify funding for sustainable project developers and maximise leverage of their tax credits.
- Integration with ZERO13’s Digital Ecosystem: By integrating Secured Carbon’s platform with ZERO13’s digital ecosystem, the partnership will create a reliable and accessible marketplace for tax credit futures. The collaboration will also focus on improving the measurement, reporting, and verification (dMRV) of tax credit futures to meet the highest compliance standards.
- Encouraging Industry Collaboration: The partnership aims to address the current fragmentation of the clean energy tax credit market by promoting greater cooperation within the industry, setting standards and increasing education. The group seeks to enhance awareness of and engagement with clean energy tax credits and futures.
Hirander Misra, CEO of GMEX Group and ZERO13, commented, “Across the industry, many organisations are working in isolation. This alliance intends to unite different market participants together to build a ‘network of networks’ that can foster collaboration, set standards, and create better practices for the carbon and tax credits markets. Our goal is to drive increased liquidity, trust and growth in these markets with technology as the key enabler.”
Tac Leung, CEO of Secured Carbon, added, “This alliance enables us to integrate our tax credit registration platform with ZERO13’s derivatives platform and ecosystem, creating a more scalable marketplace for clean energy tax credits by unlocking their pre-sale using standardized futures contracts. It simplifies the process for developers to offer or incorporate tax credits into their clean energy capital raising efforts, while ensuring they receive the best possible value. It’s the right next step for green finance.”
This announcement coincides with major climate-related events, such as last week’s New York Climate Week, where the partnership’s vision for a global carbon and clean energy tax credit ecosystem was further highlighted. As the world’s focus on sustainability intensifies, this collaboration aims to provide practical solutions to help businesses, governments, and investors achieve their environmental goals.
About ZERO13:
ZERO13 is a cutting-edge carbon market ecosystem powered by blockchain technology. It provides a carbon trading exchange, registry, participants and services orchestration hub, enabling businesses to trade and settle carbon credits efficiently while addressing the current inefficiencies and fragmentation in carbon markets. ZERO13 is designed to foster sustainable practices and help organisations meet their environmental goals through innovative technology solutions.
About Secured Carbon:
Secured Carbon is a streamlined risk management platform that unlocks clean energy tax credits to save the planet. The Secured Carbon software harnesses the power of the tax code to enable standardised and scaled investment in the clean energy transition.
About GMEX Group:
GMEX Group offers a range of multi-asset exchange trading, post-trade, and digital technology solutions, designed to support sustainable markets. Through its subsidiaries, including ZERO13, GMEX Group provides hybrid centralised and distributed ledger technology for trading and post-trade services.
For media inquiries, please contact:
Melanie Budden
melanie.budden@therealizationgroup.com
+44 (0)7974937970
Lauren Miller
lauren@securedcarbon.com
+1 (415) 340-4141
