Northern Trust has revealed a significant development that should enable digital voluntary carbon credits to be generated in near real time.
The Northern Trust Carbon Ecosystem™ focuses on climate solutions that streamline the generation of verified carbon credits, enabling increased automation in the Voluntary Carbon Market (VCM).
“Despite some automation and digitisation in the VCM over the last few years, the measurement, reporting and verification of carbon credits has been characterised by manual processes which are resource- and time-intensive,” said Justin Chapman, global head of digital assets and financial markets, at Northern Trust.
The system can receive data and record verified carbon credits in near real-time from participating providers, with the associated data attributes captured and stored on individual credits for accuracy and transparency.
The data attributes encompass measurements including carbon dioxide capture flow rates, power consumed to capture the carbon dioxide and parameters critical for robust verification and traceability such as when and where the carbon was captured.
“This additional capability of The Northern Trust Carbon Ecosystem further enhances our ability to support a fully digital lifecycle management solution for voluntary carbon credits. The recordation of verified carbon credits in near real-time on our platform supports project developers in expediting the commercialisation opportunity of their projects.”
For this project, Northern Trust has been collaborating with data collection providers and project developers, including InceptionX and Mangrove Systems.
“The Northern Trust Carbon Ecosystem provides us with a set of solutions that allows us to securely create carbon credits in near real-time on behalf of our project developer clients, enabling them to transact those credits in a shorter timeframe,” said Tom Dickie, CEO at InceptionX.
