NyxCarbon Integrates with Climate Action Data Trust to Streamline Small Business Lending
NyxCarbon, a marketplace lending platform, has integrated with Climate Action Data Trust to check the status of carbon credits reported by potential borrowers.
July 25th 2024
NyxCarbon is hosting a node as part of the Climate Action Data Trust. The new implementation will enable companies to verify the status of carbon credits that are available for issuance. This information is used to inform credit risk assessments performed by the financial institutions and asset managers that use the platform. Climate Action Data Trust is a decentralized metadata platform that links, aggregates, and harmonizes all major carbon credit registry data to enhance transparent accounting in line with Article 6 of the Paris Agreement.
Companies that need to finance their growth can use NyxCarbon to connect with financial institutions and asset managers who offer small business loans. NyxCarbon is tailored to companies that supplement revenue generation by selling carbon credits. As part of an innovative mechanism designed to make credit risk assessments more accessible, companies with CAD Trust Warehouse project ID can automatically verify the retirement status, location, registry, and available units of carbon credits. In addition to creating a more holistic risk assessment for lenders, NyxCarbon allows borrowers to automatically use verified credits as a form of loan repayment when specific conditions are met. The integration with CAD Trust greatly increases the transparency of carbon market transactions by creating a publicly verifiable record of transactions that can be checked against multiple sources.
NyxCarbon is partnering with a select group of financial institutions and asset managers that want access to untapped lending opportunities while meeting sustainable finance commitments. Additionally, companies with projects listed on one of the four main CAD Trust registries can apply at nyxcarbon.net. Companies seeking loans will be matched with lenders according to specific criteria.
Companies that provide services like carbon removal do not have access to traditional business banking services. NyxCarbon removes barriers for financial institutions and asset managers that want to lend to companies in environmental markets. The integration with Climate Action Data Trust is one of many ways that NxyCarbon streamlines loan origination and diligence for companies that sell credits on the voluntary market.
“CAD Trust gives NyxCarbon the ability to improve the overall transparency of transactions in the carbon market while enabling the near real-time verification of claims on the platform.” Brittany Salas, Founder and CEO of NyxCarbon.
“Accessible and transparent information is crucial for mainstreaming investment into high-integrity environmental projects. CAD Trust is happy to help companies like NyxCarbon channel finance to climate solutions through trusted, aggregated, and harmonized data.” Yuvaraj Dinesh Babu Nithyanandam, Executive Director at CAD Trust
NyxCarbon is on a mission to unlock over a trillion dollars in sustainable finance commitments to help the world adapt to climate change. The platform streamlines lending to companies in environmental markets by using AI and digital contracts to create a more efficient risk assessment, simplify loan servicing, and increase access to sustainability linked lending opportunities. NyxCarbon is actively connecting businesses with some of the world’s largest financial institutions to finance the growth of carbon removal and ecosystem services.
About Climate Action Data Trust
Climate Action Data Trust (CAD Trust) is a decentralized metadata platform that links, aggregates and harmonizes carbon registry data to address data fragmentation in carbon markets and enhance transparent accounting in line with Article 6 of the Paris Agreement. The CAD Trust open-source metadata system uses blockchain technology to create a decentralized record of carbon market activity to maximize the transparency of carbon credits, minimize the risk of double counting, and enhance the overall integrity and confidence in carbon markets. The Singapore-based initiative was founded by the World Bank, The International Emissions Trading Association (IETA), and the Government of Singapore.
