The carbon credits transacted in the carbon markets are among the most complex financial instruments in the world. They are segmented based on various individual characteristics of the underlying carbon projects. This complexity means it is hard for market participants to appreciate the value of these assets.
Carbon markets are inherently opaque due to the over-the-counter (OTC) nature of transactions, which are based on bilateral agreements among market participants.
The contributions of a project to the United Nation’s (UN’s) Sustainable Development Goals (SDGs) implicitly boosts the intrinsic value of a project’s carbon credits. However, an explicit assessment of this premium is needed toward informing market transactions and deployment of capital into projects.
Artificial Intelligence (AI) is a highly effective technology for dealing with data in highly complex problems. Our AI models offer transparent valuation for the most comprehensive range of carbon credits, providing valuation for even the most opaque carbon credits from both small and large carbon projects.
Viridios AI models are trained on unique and comprehensive datasets of over-the-counter (OTC) market transactions against benchmarks such as energy markets, compliance carbon markets, systemic economic factors, etc. The models “learn” all inherent complexities and variations of carbon projects, including their respective contributions to SDGs.
VRE has proven indispensable for all participants in climate and sustainability markets:
Our AI-based Valuation and Risk Engine (VRE) provides simulated fair prices and risk management features for a wide range of voluntary markets offsets by:
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