Capital markets technology and exchange company Nasdaq announced a new strategic technology partnership with carbon exchange and marketplace Climate Impact X (CIX). Under the new partnership, aimed at unlocking price transparency and liquidity in the voluntary carbon markets, Nasdaq will provide its matching technology to power CIX’s upcoming spot exchange for carbon credits.
Singapore-based CIX was launched last year through a joint venture between DBS, Singapore Exchange (SGX), Standard Chartered and Temasek, aimed at offering distinct platforms and products that cater to the needs of different buyers and sellers, leveraging satellite monitoring, machine learning and blockchain technology to enhance the transparency, integrity and quality of carbon credits. The exchange offers access to nature-based solutions that protect, restore and grow natural ecosystems such as forests, mangroves and coastal habitats.
The spot exchange, expected to launch in early 2023, will be CIX’s third platform. The Nasdaq partnership aims to address one of the key challenges of the carbon exchanges of matching buyers and sellers with unique requirements for carbon credits, which may have a wide range of attributes, such as project type or location, that can influence value.
According to the partners, the technology will bring “exchange-grade trading functionalities” to the market, meeting the complex needs of buyers and sellers through transparent price signals and real-time market data.
Mikkel Larsen, Chief Executive Officer of CIX, said:
“One of CIX’s goals is to create strong pricing signals for the liquid market. Enabling a trade matching process that is as seamless as possible will help to simplify the buyer’s journey and improve price transparency in the voluntary carbon market. Nasdaq brings unparalleled expertise in matching technology. We are pleased to join forces on our journey to build a global carbon exchange that is underpinned by quality and transparency.”
The new partnership marks the continuation of a collaboration between the companies, following an agreement earlier this month between CIX and Nasdaq’s Puro.earth to provide a carbon credit portfolio blending nature- and technology-based removal credits.
Roland Chai, Executive Vice President and Head of Market Platforms, Nasdaq, said:
“As a technology partner to trusted market infrastructure operators and new markets around the world, Nasdaq is uniquely positioned to collaborate with a marketplace innovator like CIX to bring their bold climate vision to life through our SaaS technology platform. We look forward to partner with CIX to develop and evolve the global carbon industry.”