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Simplifying the Search for Carbon Credit Supply: Unlocking Efficiency in Carbon Markets

September 26, 2024

The carbon market is emerging as one of the most scalable mechanisms for channeling finance toward impactful climate solutions. However, navigating this market, particularly when sourcing carbon credits—whether pre-issuance or from the spot market—can be complex and time-consuming. Issues such as a fragmented market and opaque carbon credit pricing structures make it difficult for buyers to advance their carbon offset strategies with confidence. 

Challenges in the Carbon Credit Market

Buyers are often required to navigate a maze of marketplaces, individual project developers, and various intermediaries, to find carbon credits that match their requirements. The investment journey typically begins with engaging dozens of potential suppliers and enduring prolonged Request for Proposal (RFP) processes before even identifying the desired credits. This fragmented approach not only consumes valuable time but also complicates the procurement process, making it challenging for buyers to find high-quality credits at competitive prices.

Introducing Sylvera’s Connect to Supply: A Streamlined Solution

To simplify this process, Sylvera is launching Connect to Supply, a powerful tool designed to help buyers find and procure carbon credits across various project stages, including pre-issuance. This product leverages a robust and growing network of over 200 suppliers and developers, ensuring buyers access the best available prices every time they transact. Connect to Supply facilitates introductions to potential intermediaries for seamless transactions. 

Governance by design and default 

Sylvera is committed to upholding our independence and integrity.  With Connect to Supply, we only facilitate introductions upon request to reduce procurement friction, and are not involved in the transaction process. Further, Sylvera is not paid for the service and will not prefer one project over another. By managing potential conflicts, Sylvera ensures it can provide buyers with the most accurate and impartial information to reduce friction at a key point in the carbon investment lifecycle.

Partnering with Xpansiv: delivering market access and seamless settlement 

With the introduction of Connect to Supply, we’re joining forces with Xpansiv, the leading market infrastructure provider for the global energy transition. Connect to Supply will leverage the infrastructure of Xpansiv’s CBL—the largest spot exchange for carbon and renewable energy credits to facilitate secure transaction settlement across 14 leading carbon and renewable energy registries, Now, buyers have access to high-quality carbon credits and the ability to procure under a single CBL agreement instead of managing multiple bilateral agreements.

Together, we’re providing a highly efficient process to source, purchase, and settle carbon credits for both buyers and developers.

"Partnering with Sylvera to integrate our expertise and infrastructure will streamline purchase,  settlement, and position management workflows, paving the way for a more transparent, efficient, and scalable carbon market, which is crucial to realize a timely, thorough, and equitable global energy transition,” said John Melby, CEO, Xpansiv.

Efficiency and Quality Assurance for Buyers

For buyers, Connect to Supply not only accelerates the investment process but also ensures that they connect with suppliers who meet their unique requirements. This reduces the risk of wasted time and resources on options that do not advance their net zero goals. The platform's centralized access to real-time carbon market information further enhances transparency, allowing buyers to make more informed decisions.

“Finding and investing in carbon credits is convoluted and time-consuming. Solutions like Connect to Supply go a long way in streamlining the process and ensuring we're investing in quality credits with real climate impact." - Nathan Dixon, VP Environmental Products Origination, SEFE 

Empowering Carbon Credit Suppliers and Developers

For suppliers and project developers, Connect to Supply serves as a tool for winning new business and establishing direct relationships with a growing network of corporate buyers. The platform also helps suppliers better manage their carbon credit inventory by reducing the risk of unsold credits and improving demand forecasting. To date, over 4M credits in buyer demand has been funneled through the tool.

“At Tullett Prebon, we are actively involved in growing the global carbon credit market and securing the best outcomes for our clients in both the compliance and voluntary markets. Connect to Supply has helped us engage with new customers seeking to procure carbon credits as well as service as a valuable indicator of market demand,” said Kevin McDermott, Managing Director at Tullett Prebon.

Facilitating Pre-Issuance Market Transactions

Beyond the spot market, Connect to Supply also facilitates connections between businesses and developers who are building projects ready for investment but have not yet issued credits. This feature is invaluable for project developers, as it helps secure capital earlier in the project lifecycle. For corporate buyers, it simplifies the process of securing carbon credit supply that aligns with their long-term climate goals.

“Sylvera demonstrates a deep understanding of the challenges and opportunities in the ever-evolving carbon markets. Their innovative solutions seamlessly bridge gaps and enable collaboration between project developers and financiers. We look forward to working with Sylvera in the years to come." - Patrick Michalowski, Vice President, Drumlin Capital. 

Driving Impactful Carbon Strategies with Sylvera

Achieving impactful carbon credit strategies requires access to the best data, tools, and expertise throughout the entire carbon journey—from developing a strategy to ongoing project monitoring. Sylvera provides an end-to-end data platform for carbon procurement and investment, enabling companies and investors to make measurable progress toward their climate goals while optimizing returns on investment. With enhanced tools like Connect to Supply, the carbon credit market can become more transparent, standardized, and efficient, fostering better collaboration between the supply and demand sides.

Interested in becoming a supplier? Please reach out to us here.
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