Xpansiv Launches Xpansiv Connect™ And Opens Its Infrastructure To The Entire Industry

Xpansiv® Launches Xpansiv Connect™ And Opens Its Infrastructure To The Entire Industry - Carbon Herald
Source: xpansiv.com

The world’s largest energy transition and carbon market infrastructure provider has made a potentially game-changing step by unveiling Xpansiv Connect™. This new system will serve as an integration hub that provides access to the company’s full range of services – trading, automated settlement, meta-registry and portfolio management.

“We believe opening access to our proven, institutional-grade technology infrastructure will best support the ecosystem of interoperable technology and market solutions needed to achieve a timely and equitable global energy transition.” said John Melby, Chief Executive Officer. “We are excited by the significant uptake of Xpansiv Connect by market-leading firms and look forward to enabling all stakeholders in these critical markets.”

Xpansiv’s CBL spot market has a 90% share of spot exchange-traded carbon credits and 70% of offsets and North American renewable energy credits, making the company one of the structural players in the energy transition markets. Its level of collaboration with a broad spectrum of partners across the industry, has allowed the development of Xpansiv Connect™ which kicks off fully integrated with 13 renewable energy and carbon registries and five marketplaces.

Early uptake

Some of the companies that are already taking advantage of the hub’s capabilities shared their thoughts on its importance and the benefits it provides.

Hannah Hauman, Global Head of Carbon Trading, Trafigura said: “Trafigura welcomes the ongoing development of efficient market infrastructure and robust data platforms to scale the environmental commodities markets. Our collaboration with key enablers such as data providers and marketplaces is central to building transparency and liquidity and we look forward to working with Xpansiv to deliver these much-needed solutions to support these developing markets.”

Patch Co-founder & CEO Brennan Spellacy also focused on the system’s openness: “Accessibility is vital to scaling any market. As the first platform to integrate Xpansiv Connect for use in the voluntary carbon market, Patch is able to offer carbon credit buyers and sellers an even more efficient and transparent means to supporting climate solutions at gigatonne scale.”

Opening up to trading platforms and exchanges

While Xpansiv Connect™ is already available to partners from across all verticals – trading platforms, exchanges, banks, ratings companies and insurers – there is also an example of a project that will have the system embedded from its start.

Saudi Arabia’s Regional Voluntary Carbon Market Company (RVCMC) will be the first to be built on the Xpansiv Connect™ system and is set to launch in Q4 of 2024. The RVCMC will utilize the full suite of capabilities and bridge its independent exchange matching engine with services like post-trade settlement and portfolio management, without the need to build them on its own.

Source: Xpansiv Connect™ presentation

Riham ElGizy, CEO of RVCMC, said: “By leveraging Xpansiv Connect’s technical infrastructure, we aim to deliver essential elements of Saudi Arabia’s first carbon exchange and ensure that Riyadh continues to build its standing as a global financial center. RVCMC exchange aims to help to scale up global supply and demand, channeling much needed climate finance across the Global South in the future.”

The implementation with RVCMC could serve as a blueprint for working with other carbon market marketplaces at various stages of their development across the world. Japan launched its carbon market in late 2023, while Malaysia will be holding its first auction in July 2024.

Operating in what is a growing market – though not without its challenges – and powered by a $400 million investment from Blackstone, this appears to be another step in the development of Xpansiv as one of the key building blocks of the energy transition infrastructure.

Read more: Blackstone Commits $400 Million To Strategic Investment In Xpansiv

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