“The way that commodities trade now is probably not the way they’re going to trade in the future,” says Ben Stuart, Xpansiv chief commercial officer. “The attributes around their generation, and how they’re produced, are going to have a pricing impact.”
This includes the methane emissions associated with the production of natural gas. Xpansiv has a product that provides detailed environmental data about oil and gas production that allows more efficient producers to market their lower carbon footprint. “If they have less impact at the point of production, and therefore, having less impact on the environment, then that information needs to be priced into those commodities,” says Stuart.
As for the quality of carbon credits. Stuart emphasises that Xpansiv acts as the infrastructure provider, market platform and registry for parties trading these carbon credits. It leaves the crediting process to independent third parties such as American Carbon Registry and government agencies such as Australia’s Clean Energy Regulator.