CTX March 2024 Newsletter | Issue #152

Global Carbon Registry? Launches + ITMO’s

The newly rebuilt Global Carbon Registry (GCR) has gone live. In an exciting innovation, GCR can now issue ITMOs in addition to Global Carbon Credits? (GCCs) for voluntary trading. Furthermore, as it could previously, it has the ability to support National Carbon Sub-Registries, which can utilise all of GCR's unique and innovative features. GCR will offer world-class registry technology, top-notch support, issuance fees as low as 10 cents per credit, and no transfer or retirement fees.

For Nations' Sub-Registries, GCR is now willing to offer a Pay-As-You-Go (PAYG) model, with issuance or activation fees deducted electronically from transaction proceeds on CTX (subject to trading agreements). In another groundbreaking and progressive decision, GCR will accept ITMO registrations with documents from ANY international credit standard, including Verra VCS, Gold Standard, CDM, or BioCarbon Standard. To find out more, visit Globalcarbon.co.

CTX ITMO Auction?prepping for May Launch

After experiencing many unavoidable delays, the CTX ITMO Auction, utilising GCR Registry technology for registration and GEM’s Auction technology, will be seeking ITMO Registrations from mid-April, with a target date reset to May for the Auction. Despite fabulous buyer demand, few projects to date were not quite ready or faced challenges with the Nation's Letter of Authorisation.

CTX and GEM believe that expanding projects to include documentation and/or approval from other Registries or Credit Standards opens up opportunities for many projects we previously could not access. With the CTX GCR Interface, ITMOs can be listed for sale globally 24/7/365, and now, the forward purchase Auction means GCR can successfully enable the registry 'Escrow' of Sold at Auction Credits, while the balance can be ready for SPOT sale once issued.

The GEM technology and contracts are ready to go. Qualified buyers (budget $5 million+) or sellers (with approvals) can email their interest to Auctions@ctxglobal.com.

Unique Registry Opportunity – International Carbon Registry Sale

For several years, Global Environmental Markets Pty Ltd Ltd (GEM) has been building and developing the world's leading National and International Carbon registry technology. Each of these registries is fully functional as a transactional (OTC) Registry and interfaced with Carbon Trade Exchange (CTX) for optional seamless electronic trading, 24/7/365 globally.

The GEM technology allows the owner/operators to control all the Registry Account holder fees and receive 100% of these Fees or to have them deducted electronically from the proceeds of the CTX Transaction. The Registries allow fully flexible fees for accounts, project registrations, credit issuance and activation, plus many additional labels such as SDGs and CORSIA, which can be easily applied with or without additional fees.

These Registries can issue multiple Credit types and Standards, including Domestic or International Voluntary Credits and ITMOs. They can easily initiate or accept transfers or conversions of other credits from any international registry. Additionally, they can be modified later to issue RECs and other environmental instruments. State-of-the-art technology, aligned with the re-developed Global Carbon Registry (GCR).

Unique Offer: despite approval from Government departments, Ministers, and Private Enterprises, some nations have been unable to pay the GEM fees for the purchase of the license for this unique technology. So, these are now for sale at a massively reduced price.

• Victoria Falls Carbon Registry
• Zimbabwe Carbon Credit Registry

Normally priced at US $350,000, these fully operational Registries can be rebranded for any Nation or Credit Standard within 30 days. Reduced by 40% for the month of April only to $210,000 with rebranding included (if required) or $175,000 for the current brands.

SHIP Carbon – USA Disclosures

Safe Harbour Pathway to a Sustainable Maritime Industry Harnessing the Poseidon Principles and Voluntary Carbon Markets: ?

The Poseidon Principles and Voluntary Carbon Markets have emerged as pivotal tools in addressing the environmental impact of the maritime industry. Launched in 2019, the Poseidon Principles signify a collective commitment among financial institutions to integrate climate considerations into ship financing decisions. By aligning investments with climate goals, these principles incentivise the adoption of greener technologies and practices within the shipping sector, fostering transparency and collaboration.

Simultaneously, Voluntary Carbon Markets offer a flexible mechanism for companies to offset their carbon emissions by investing in projects that reduce or remove greenhouse gases. Within the maritime sector, these markets incentivise emission reduction projects and support sustainable development initiatives globally. They promote accountability, transparency, and collaboration among stakeholders, facilitating the transition toward a more sustainable and resilient maritime sector.

As companies increasingly prioritise environmental responsibility, these initiatives provide essential frameworks for achieving carbon neutrality and advancing climate mitigation efforts. As the maritime industry continues to navigate the transition to a low-carbon future, the Poseidon Principles and voluntary carbon markets will play a crucial role in shaping a more sustainable and resilient maritime sector for generations to come.

Furthermore, the Safe Harbour for offsetting is via Carbon Trade eXchange (CTX) and its special Docking Port at www.ctxglobal.com/shipping, which further enhances the CTX potential via our Aviation Carbon Exchange? for Aviation and CORSIA requirements. The impacts for European and USA importers are evident, with the USA introducing new regulations on 'climate risk' disclosure, where carbon-neutral supply chains must prevail.

The US Securities and Exchange Commission (SEC) adopted new climate-related risk disclosure rules on March 6, 2024, two years after the SEC proposed new climate-related disclosure rules and three years after the SEC first formally sought public input on new rules. As with the proposed rules issued in 2022, the final rules draw heavily on concepts of the Greenhouse Gas Protocol with respect to quantitative disclosure of greenhouse gas (GHG) emissions and on the “four-pillar” narrative climate disclosure framework relating to governance, risk oversight, strategy, and goals and metrics that was developed by the Task Force on Climate-Related Financial Disclosures (TCFD). (The TCFD was formally disbanded as an independent disclosure framework in 2023 but incorporated into climate disclosure standards of the new International Sustainability Standards Board (ISSB).) Source: McDermot Will & Emrey Global Law.

Exchange Cleared OTC Trades

Eighteen months ago, CTX introduced a unique offer for sellers to attract buyers through CTX. Under this offer, if a CTX member introduces a buyer to conduct its over-the-counter (OTC) trade via our OTC Brokerage service, we will halve the fees for both parties, even if they are not CTX members. CTX will then handle all the OTC contracts and clear and settle the trade through the CTX Global infrastructure, supporting any of our multiple credit standards. The trade described below is one such example.

CTX Smashes Highest Sale Price Record

While numerous smaller trades with lower values are prevalent in the market, it was a delightful surprise when our previous record of $44.00 was smashed earlier this month at $51.90 per credit (Verra VCS Blue Carbon). CTX is on the verge of raising fees on micro trades of lower-value credits, which have dominated recent trading activities, despite the bullish number of transactions, particularly on UCR credits.

CTX Listings – New Record and Buyer Paradise!

Projects of?the Month

1.?BioCarbon Standard

Reforestation - 3 SDG’s

Colombia (Latin America) - USD $12.00

By progressive reafforesting, this unique climate change mitigation initiative reduces and removes greenhouse gas emissions (GHG) by implementing low – carbon production systems and Agroforestry (cacao, cashew and timber); with the objective of contributing to the conservation of biodiversity, carbon stored above and below ground, as well as clean water management in prioritised areas.?

The project supports the economic, social and environmental well-being of producer families by providing economic benefits from the sale of carbon certificates. The initiative began in 2017, projecting a total of 20,000 hectares of private lands by 2036 with an estimated 47,105 tCO2 of GHG reduction per year.

Buy Credits Now

2.? CDM UNFCCC

Hydro - 4 SDG’s

Asia (China) - USD $0.70

500,000 listed vintage 2016-2020

The Run of River project located on Western China replaces a substantial part of the electricity alternately generated by coal-fired, with clean renewable energy, which mitigates environmental pollution, as Run of River Hydro has the least environmental impact of any renewable energy.?The region of Ningxia where the project is developed had a population of over 7.2 million with almost 20% living in poverty.

The project helps alleviate this poverty by providing 2,800 jobs during the construction phase and 120 during its operation. Rural Ningxia was for long an officially designated poverty area, and remains on the lower rungs of the developmental ladder.?It is the province with the third smallest GDP (Tibet?being the last) in China, even though its neighbours, Inner Mongolia and Shaanxi, are among the strongest emerging provincial economies in the country.

Similar to other areas, Ningxia has seen a gradual decline of its peasant population due to rural–urban migration. Despite this, the great majority (62.8 percent) was still agricultural at the time of the survey, meaning that an uninterrupted Water supply with new clean energy helps maintain Rural lives and welfare, while increasing prosperity. The project implementation helps reduce 334,010 tCO2 per annum while contributing to the sustainable development goals.

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3.?Verra VCS

REDD+ - 4 SDG’s

Cambodia (Asia) - USD $3.25

The stunning project covers 166,983 ha of forest, part of the ancestral homeland of ethnic Bunong people, for whom the forest is the main source of subsistence. There are endemic animal species and biodiversity that is threatened and endangered from accelerating forest clearance for agriculture together with unsustainable resource extraction (hunting, logging, and fishing). The area also presents development of mines and agro-industrial plantations acting as potential deforestation drivers.?

The Forest Administration (FA), the Wildlife Conservation Society (WCS) and other local NGO partners work together to develop management systems for the forest to conserve and restore the biodiversity and to protect the livelihoods of local people.

Carbon revenue is essential to expand activities to match the level of threat; ensure long-term support by covering operating costs; and generate financial incentives for conservation at local and national level to enable conservation action to be expanded and sustained in the long-term. The estimated annual emissions reductions are 1,426,648? tCO2e.

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CTX Members – if you have any questions, please email operations@ctxglobal.com.?

Thank you all for your contributions to help save?the planet for our future generations.