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Introducing CF2: Commercial Facilities Carbon Fund – Pioneering Carbon Credit Acquisition Fund for Sustainable Future

August 16, 2023

WASHINGTON DC, USA, August 14, 2023/EINPresswire.com/ — A first of its kind product, the Commercial Facilities Carbon Fund (CF2) uses proprietary digital infrastructure for the acquisition and monetization of carbon credits from emissions reduction projects in commercial facilities. This forward-looking framework to enable green financing with digital guardrails to mitigate risk, improve efficiencies, and allow scale, will help reshape the carbon credit market.

“By using our digital platform and the digital rails that we are interconnected with, we are able to de-risk the carbon credit advance purchase and sale so that we are effectively arbitraging the offset between the buyer and seller,” says Asad Sultan, Chief Executive Officer of Verdana and EcoConsortium. “This makes the CF2 investment program extremely scalable.”

The CF2 distinguishes itself by leveraging the Verdana digitized platform, which processes, values, and manages carbon credits for commercial facilities as an asset class. This platform incorporates real-time data and dynamic adjustments, making CF2 a market maker that establishes precise pricing for carbon credits in targeted markets.

The fund’s comprehensive approach encompasses multiple components:

• Digitized Platform and Methodologies:

CF2’s asset pool encompasses commercial facilities, EVs, and renewables asset classes. The Verdana digital platform facilitates end-to-end processing, ensuring transparency from credit origination to sale. This platform’s integration with UNFCCC CDM methodologies smoothens the carbon credit certification process by streamlining analytics, providing monthly variance analysis, and significantly reducing certification costs and timelines.

• Accurate Pricing and Acquisition:

With control over credit processing and costs, CF2 ensures accurate pricing. The fund factors in funding partners’ capital costs to enable forward purchase of carbon credits at prevailing market rates.

• Innovative Payment Structure:

CF2 introduces a unique payment structure, offering project owners an upfront payment of 10-20% based on estimated credit inventory. The remaining balance aligns with actual carbon credits delivered annually, ensuring accuracy through UNFCCC CDM compliant energy efficiency programs.

• Market Positioning and Risk Management:

Through collateralized carbon credits (CCOs) backed by digital integrity, CF2 mitigates market risk, bolstering its market position. A 20% performance carry on capital gains from market risk portion incentivizes performance.

• Forward Sales and Market Expansion

CF2 aligns fund duration with purchase programs, enabling forward sales to industries seeking credible offset credits. Initial market rollout includes Malaysia, Singapore, UAE, and KSA, with expansion contingent on growth.

• Efficacy and Collaboration:

CF2 demonstrates its efficacy in smaller markets, showcasing impact with support from USAID, ADB, and development NGOs. This strategy bolsters credibility and propels market expansion.

• Regulatory Structure and Technology Platform:

Operated under a Singapore-based VCC regulated by MAS, CF2’s operations are enhanced by Hatcher‘s Venture-as-a-service platform.

“What we find exciting about CF2 is the adoption of an important new segment —namely the commercial facilities asset class — into the carbon credit marketplace through the innovative use of technology, which is in line with our fund’s sustainability objectives”, said Prakash Shukla, Managing Partner of Wayfare Ventures.

With its pioneering approach, CF2 is poised to shape the future of carbon credit acquisition, catalyzing sustainable growth in the commercial sector.

For more details download the white paper on CF2 here: https://verdana.io/cf2-commercial-facilities-carbon-fund/

For inquiries and further information, please visit EcoConsortium or send us an email to contact@ecoconsortium.io

About Verdana:
Verdana is a blockchain-enabled platform that combines cutting-edge digital technologies to revolutionize emissions management across industries. From real-time dMRV reporting to asset management and carbon credit claims, Verdana empowers businesses to lead the charge towards a greener future.
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