 |
|
January has been a busy month for us at Neufin. We have a brand new website and brand identity that better represents what we are building. In this edition of the 1.5° Perspective, we present a special feature that will guide you through the exciting developments on our platform. But wait, there’s more! We also cover the latest updates from the world of climate finance. |
|
|
An all-new Neufin website |
 |
Our goal since we launched has been to build the enabling infrastructure that supports rapid deployment of capital into climate projects. We created products to help companies access capital for their projects and to help investors/buyers transact. As our work has gained momentum, we recognise the need to communicate with clarity our current identity and future direction. Positioned at the intersection of sustainability and finance, our refreshed look draws inspiration from both worlds. We have revamped our website to better personify who we are today, with trust and clarity as the core principles guiding our design philosophy. |
We have made it easier for investors, businesses and environmental commodity buyers to navigate our offerings. Neufin’s suite of product-based solutions empowers financial institutions, traders, corporations, and businesses to efficiently discover and execute deals for green project financing, carbon offsets, I-RECs and green PPAs. We cover several sectors including Solar, Waste to Energy, Carbon removal through NbS, Biochar & CCUS and Electric vehicles. |
|
We’re now tracking Puro Biochar credits |
Based on your feedback, our Carbon Price Tracker now supports prices for Puro Biochar credits (thank you for the comments!). Coming with scientific credibility around the removal potential of biochar, Puro issues Carbon Removal Credits (CORCs) that are today commanding a price premium in the Voluntary Carbon Market (VCM). Users can now track monthly updated price per credit for Puro.earth biochar CORCs under the carbon project section. |
 |
Carbon Price Tracker is now a Carbon Pricing Hub |
We’re transforming our carbon price tracker to a carbon pricing hub. Moving beyond featuring carbon prices, you can now view the latest news on carbon pricing. We will continue to build new and exciting features that make this the only page you need to bookmark for all your carbon pricing questions. |
|
|
Neufin’s carbon offsets spots/forwards portfolio |
We have made our carbon offset portfolio for spots/forwards easy to access. This dedicated portal will showcase the latest project inventory with prices updated regularly. Interested buyers can also explore the project details, media, and attributes through a detailed listing page. If you have a specific requirement for a project type/geography/volume or price, we can source them for you based on the requirements. Don’t forget to bookmark this page for future reference! Ready to test it out? |
|
|
|
What India needs to unlock climate finance |
More than 85% of India’s climate finance in 2020 came from domestic sources, with international private capital accounting for less than 7% of the total financial flows. Policymakers need to unlock the vast potential of private capital to join the fight against climate change more effectively. |
Enhancing the framework surrounding data, taxonomies, and disclosures is a key strategy to accelerate the flow of financing. India is ranked fourth among the top five nations providing fossil fuel subsidies, amounting to approximately $350 billion. There is an urgent necessity to phase out these subsidies and implement carbon pricing initiatives to generate revenue for sustainable public investment. Implementing measures to bolster macroeconomic and public investment management will aid in reducing risk premiums and funding costs, fostering economic expansion, and attracting private capital. |
Financial regulators and the Central Bank must intensify efforts to advocate for global standards that ensure transparent and consistent disclosures. Concurrently, there’s a necessity to enhance climate risk analyses and integrate climate-related financial risks into prudential frameworks to bolster financial stability. |
Clarity on tax exemptions is also vital to maintain the integrity of concessional finance mechanisms. While multilateral Development Finance Institutions (DFIs) benefit from tax exemptions, other providers like impact funds may not. Ensuring a consistent tax regime across all providers is essential to incentivise private sector involvement in climate financing and promote fairness. Establishing a regulatory framework for risk-sharing facilities can mitigate investment risks and significantly bolster climate-related investments. These facilities, which involve DFIs sharing a portion of losses with asset originators, are currently underutilised due to regulatory limitations. There is also a need to enhance understanding and raise awareness regarding climate-linked blended finance by conducting specialised workshops and sessions targeted at stakeholders from both the public and private spheres. |
|
|
Budget 2024: Focus on Green Economy |
To achieve net-zero carbon emissions, India will solarise rooftops of one crore households and provide viability gap funding for harnessing offshore wind energy potential with an initial capacity of one gigawatt, Finance Minister Nirmala Sitharaman said as she announced the interim budget for 2024-25. |
|
The emergence of Blue Economy 2.0 |
The interim budget announced on February 1, 2024, featured the launch of Blue Economy 2.0, aimed at promoting climate-resilient activities and sustainable development in coastal areas. The scheme will focus on restoration and adaptation measures, as well as the expansion of coastal aquaculture and mariculture, adopting an integrated and multi-sectoral approach. |
|
Rich countries miss key deadline for loss and damage fund launch |
Higher-income countries have missed a deadline to nominate their board members for the fledgling loss and damage fund, potentially creating delays in the fund’s bid to assist communities experiencing the adverse effects of climate change. |
Regional groups were asked to select their board representatives “as soon as possible” and the U.N.’s climate change arm, the United Nations Framework Convention on Climate Change, was to convene the first meeting of the fund’s board after all members had been appointed, “but no later than 31 January 2024.” |
|
|
|
Carbon credit price for the past month |
Price per credit: $3.31/tCO2e (-.30%MoM) |
Based on top 500 projects globally by volume of credits retired. |
The overall price per carbon credit has decreased by 0.30% over last month (when it stood at $3.32). Prices for Household devices credits continue to rise, witnessing a 15% increase compared to last month. Prices for nature-based solutions credits are down 5% from last month but continue to trend in the range of $3.2 and $3.8 per credit. Prices for standardised tokens have seen little to no change due to low trade volumes. Our newly added price indicator for Puro.earth biochar is up 7.43% this month to $148.18, representing continued demand for high-quality carbon removal credits. |
|
|
|
Conference on Net Zero Strategies and Green Power Procurement for Corporates, Mumbai |
|
We will be on the ground and would love to meet. Please email shrey@neufin.co to arrange a meeting. |
|
|
|
The Indian government has visibly upped its ante to meet national climate commitments, with a particular focus on Renewable Energy – all of which is well reflected in the interim budget. But RE alone cannot support the transition to net zero. The need to invite private capital into climate financing is now more pressing than ever before. What do we need to make that happen? For starters, we need a clear green taxonomy to define what is green and what isn’t, and mandatory disclosures that allow the central bank to hold financial institutions accountable for investing in a manner that is positive for the planet and accounts for the multitude of risks posed by climate change. |
We’ll be back with more interesting updates next month. Team Neufin |
