On March 30th, Shiftcarbon Inc. (SHFT:CSE) announced the beta launch of its widely anticipated carbon credit trading platform. In its beta state, the platform is available to all customers looking to list, buy, sell, or verify voluntary carbon offsets.
ShiftCarbon Inc. (formerly TraceSafe Inc.) is a British Virgin Islands-based 'Internet of Things' (IoT) and decarbonization solution provider. It hosts a platform for carbon accounting, managing offsets, and Measurement, Reporting, and Verification (MRV) automation. The company's primary product, Shiftcarbon Measure, allows executives to view a complete picture of their companies' carbon emissions without needing external consultants or manual calculations.
ShiftCarbon is a decarbonization solution provider that brings offsets from the world's largest vendors and marketplaces directly to businesses. The company enables carbon credit projects, buyers, and sellers to trade while maintaining transparency and trust with global verification bodies. The company uses its SaaS products for measuring carbon output to help customers understand their carbon emissions so that they can reduce their impact and purchase offsets for the remaining carbon.
The company also operates TraceSafe, an IoT cloud platform powering safer and smarter enterprise environments. It has an established presence in 40 countries across North America, Asia, and Europe in the fields of healthcare, hospitality, construction, education, and government.
"The voluntary carbon market is an essential component in the global effort to combat climate change and create a more sustainable future," explains Shiftcarbon CEO Wayne Lloyd.
Catalyst: A New Marketplace
"We are proud to be a part of this new market, building critical infrastructure that makes carbon offsetting more accessible and streamlined for all players. Backed by the U.S. and European governments, and leading organizations like the Bezos Earth Fund and The Rockefeller Foundation, the voluntary carbon market has the potential to deliver trillions of dollars of investment to support the transition to renewables and mitigate the worst impacts of climate change."
Why This Sector? Massive Growth Potential
The carbon offset market is expected to grow significantly in the coming years as more organizations and wealthy individuals seek to reduce their greenhouse gas emissions and contribute to climate-positive action. According to a report by MarketsandMarkets, the global carbon offset market is projected to grow from US$414 billion in 2023 to reach US$1.6 trillion by 2027.
According to a report on Stockwatch, "Shiftcarbon's solution to the challenges faced by the voluntary carbon market is a resilient and flexible infrastructure that allows offset creators, buyers, and sellers to seamlessly trade while maintaining transparency and trust with global verification bodies."
However, the carbon offset industry remains highly disorganized despite this massive growth potential. As a report from McKinsey points out, "Today's voluntary carbon market lacks the liquidity necessary for efficient trading, in part because carbon credits are highly heterogeneous."
"Each credit has attributes associated with the underlying project, such as the type of project or the region where it was carried out. These attributes affect the price of the credit because buyers value additional attributes differently."
The report concludes, "Overall, the inconsistency among credits means that matching an individual buyer with a corresponding supplier is a time-consuming, inefficient process transacted over the counter."
Why This Company? Making the Carbon Market Work
According to a report on Stockwatch, "Shiftcarbon's solution to the challenges faced by the voluntary carbon market is a resilient and flexible infrastructure that allows offset creators, buyers, and sellers to seamlessly trade while maintaining transparency and trust with global verification bodies."
The company spent its alpha phase fine-tuning its inventory management system. This system revolves around a "fractionalization engine that allows large wholesale carbon offsets to be broken down into smaller units while maintaining credit integrity." This allows customers to buy the right amount of carbon credits and invest in green projects that support their mission/operations e.g., a cruise ship customer can invest in ocean cleaning credits.
The upshot is that companies will save money developing their trading modalities, modalities that focus on customs credit portfolios reflecting unique values and goals.
In a February communique, before the new marketplace was announced, analyst Clive Maund opined that Shiftcarbon is "another 'politically correct' company whose stock is at rock bottom after a severe bear market from its early 2021 highs."
"To make it easier and more affordable for companies of all sizes to purchase carbon offsets," the report continues, "Shiftcarbon's carbon accounting platform provides an easy-to-use interface for measuring emissions, while the company's MRV automation platform aims to promote and make the creation of voluntary carbon credits more efficient by significantly reducing the cost and complexity of data collection for some of these projects."
These solutions are all accessible through the open Shiftcarbon API, an interface enabling customers to embed offsets directly into their business workflows.
"We are proud to partner with some of the biggest players in the sustainability market to power the listing, trading, and verification of voluntary carbon credits," says Qayyum Rajan, Shiftcarbon's head of carbon products. "By connecting our infrastructure with our partners, we are powering a truly global and open market for voluntary carbon offsets."
The company has an established customer base with national governments and enterprises like Royal Caribbean Cruises, Micron Technology (Fortune 500 semiconductor), Hockey Canada, TD Garden, TELUS and is planning to use this network to advance its carbon product offering to other large enterprises
Streetwise Ownership Overview*Why Now? New Product Launched Despite Deeply Discounted Stock
In a February communique, before the new marketplace was announced, analyst Clive Maund opined that Shiftcarbon is "another 'politically correct' company whose stock is at rock bottom after a severe bear market from its early 2021 highs."
"It has been under strong accumulation in recent weeks to the point that it looks like it will break higher into a new bull market soon."
Ownership and Share Structure
According to Reuters, 26.01% of the company is held by management and insiders. Chairman James Passin is the largest shareholder on record with 15.20% or 7.58 million shares. CEO Lloyd owns another 7.51% (4.24 million shares.)
The rest is in retail.
Shiftcarbon has a market cap of CA$3.38 million. The company has some 56.4 million shares outstanding with a free float of 42.4 million.
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Disclosures:
1) Owen Ferguson wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
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