Sensand launches platform to transform carbon credit market
Melbourne-based technology developer Sensand has unveiled a platform aimed at enhancing transparency in the carbon credit market, facilitating more reliable carbon offset transactions for Australian businesses.
Sensand's dual-platform technology seeks to provide carbon-conscious organisations with the means to purchase high-quality carbon credits while offering greater visibility and control to these buyers. The platform will also assist farmers and carbon project developers by managing and accurately quantifying the carbon sequestration of individual projects on their land.
The technology developed by Sensand stands to benefit Australian farmers and landowners significantly. It enables them to gather precise data from remote sensors and measurement tools, allowing for the comparison of specific carbon projects or the grouping of such projects with others to achieve economies of scale.
"We believe that our platform is the world's first end-to-end carbon management ecosystem that gives carbon credit buyers ultimate control and transparency over the carbon credits they buy, by giving them direct and ongoing access to underlying project data in real time," stated Sensand Founder and CEO, Peter Moulton. "This data can then be used to improve and show providence of each individual carbon credit, verifying their impact so they can be traded equitably and transparently on global markets."
Mr Moulton highlighted that Sensand's technology addresses longstanding credibility issues within carbon markets, allowing for meticulous monitoring and secure exchange of project-related data across multiple applications. Sharing data with various stakeholders is made possible, and real-time monitoring ensures that carbon credit buyers receive recent information, thereby avoiding reliance on outdated data.
He added, "There are a lot of moving parts and lots of people involved in the carbon credit value chain have struggled with the best way to deliver this information transparently and regularly. Not really knowing what you are buying or if the project is still on track years after it was first registered is a massive issue."
The introduction of Sensand's technology represents a significant progression towards rebuilding trust in global carbon markets, which have been critiqued for not effectively restoring forest cover or ensuring meaningful carbon savings. This development is timely, coinciding with the forthcoming 2024 United Nations Climate Change Conference in Azerbaijan, where efforts will focus on establishing a UN-endorsed market for trading carbon offsets among countries and corporations aiming to fulfil their climate objectives.
While carbon credit purchases in Australia are mostly voluntary, these transactions play a crucial role for many companies striving towards net-zero emissions, except for obligations under the Federal Government's Safeguard Mechanism.
The Safeguard Mechanism requires initially identified companies emitting over 100,000 tonnes of carbon dioxide annually to decrease their emissions by 34.3% by 2030, aligning with the government's goal to cut national emissions by 43% from 2005 levels by 2030, progressing towards net zero by 2050.
Despite farmers and landowners being expected to contribute significantly to reaching Australia's net-zero target, the process of identifying, verifying, and developing carbon credits has faced numerous challenges.
Mr Moulton commented, "A major stumbling block for farmers has been the ability to easily identify a potential carbon project, to get it registered and then marketed. Currently it can take years before a new carbon project is ready to sell its carbon credits to the market. Our platform will speed up the process by providing much-needed automation, better integration across multiple applications, and greater transparency and verification."
Sensand's platform aims to deliver efficient reporting and ensure data integrity throughout the carbon land management lifecycle by harnessing data from a variety of sources such as satellites, weather stations, drones, and in-ground sensors. This approach ensures accurate measurement, reporting, and verification of carbon abatement and confirms project outcomes in the field.
The platform will provide buyers with comprehensive records of their carbon credit purchases and retirements, enabling brokers, auditors, and service providers to conduct due diligence using advanced technology. This is expected to set a new standard for proving carbon credit provenance and underpinning net-zero claims, ultimately streamlining the creation, issuance, sale, and eventual retirement of individual credits.
Sensand has gained notable traction over the last year, securing nearly AUD $10 million in venture capital, including AUD $6 million from businessman Robert Costa. The company is also a tier one partner of the government-supported One Basin Cooperative Research Centre, which endeavours to enhance productivity, resilience, and sustainability in the Murray–Darling Basin.
