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Xpansiv
Case study

Trading for a greener future with the Xpansiv commodities platform

Supporting the evolution of voluntary carbon markets to achieve net zero emissions

The Xpansiv global marketplace for ESG commodities is leading the way as commodity markets adapt to meet ambitious sustainability goals, providing a voluntary carbon trading platform for buyers and sellers.

$10b

registered assets

$20m

CEFC investment

~1,000

corporate users 

Our capital raise comes at a critical moment. Commodity markets must adapt to meet global ESG ambitions, beginning with net-zero commitments. Xpansiv is at the forefront of this wave and well funded to consolidate our position as the core infrastructure provider for ESG commodity markets.
Suzy Taherian
Xpansiv CFO

Our investment

The CEFC has invested $20 million into Xpansiv to strengthen the Australian ESG commodities market and accelerate the further development of investment opportunities supporting Australia’s net zero emissions transition. The CEFC commitment is part of a US$100 million capital raise.

The Xpansiv centralised platform allows buyers and sellers to trade ESG-inclusive commodities to help meet their carbon emissions targets. The platform provides more than 1,000 major Australian and global corporates with access to some $10 billion in registered assets, including carbon offsets, renewable energy certificates and differentiated fuels.

Xpansiv is an innovator in developing new products such as Digital Natural Gas, which tracks vital information like greenhouse-gas profiles at the point of production, as well as carbon benchmark products that include the Global Emissions Offset, and Nature-Based Global Emissions Offset, providing customers with standardised means to manage their global emissions risk.

our impact

With the marketplace for ESG products evolving at a rapid rate, this CEFC investment provides institutional investors and corporates with greater access to ESG products, unlocking new sustainability-focused investment opportunities to accelerate the transition to net zero emissions.

The additional capital will facilitate the expansion of the Xpansiv platform to develop, register, transact, and price ESG commodities through organic growth initiatives and strategic acquisitions.

In September 2021, Xpansiv reporting a major milestone, with 70 million tonnes of carbon traded on its platform in nine months, also setting a new monthly record with more than 15 million tonnes traded in August 2021, 812 per cent increase on the prior corresponding period.

According to the global Taskforce on Scaling Voluntary Carbon Markets voluntary carbon markets are set to play an increasingly significant role in ambitious carbon reduction strategies.  

The Taskforce has reported that robust and efficient voluntary carbon markets can enable the private sector to take ambitious steps toward compensating for their contribution to climate risk through the purchase and retirement of carbon credits as offsets. A carbon credit is a verifiable quantity of climate mitigation for which the buyer can claim an offset as a result of financing either:  

  • Reduction or avoidance of carbon emissions, by financing the implementation of technologies or practices to avoid potential future carbon emissions when they otherwise would not have taken place
  • Removal or sequestration (storage) of carbon dioxide from the atmosphere, by financing the implementation of negative emissions technologies

 

Last updated 24 September 2021. National, Climate Bonds, Renewable energy, Low emissions, Energy efficiency