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Paving the Way for a Trillion Dollar Market

IN THIS REPORT

Global Carbon Markets are Erupting: Watch This Stock

How does a fast-expanding market carve out its place for good?

Carbon is one of the hottest sectors right now and that’s not going to change.

Part of the reason is that climate change is becoming more and more visible and mainstream.

The world is warming, and the latest heatwave sweeping across India and Pakistan is seeing temperatures pushing over 120°F (48°C) in some regions.

They’re seeing the hottest average spring temperatures on record in over a century. And in a few of those areas, some the hottest Spring temperatures recorded in the world.

Experts believe these kinds of extreme changes in weather patterns could happen more and more.

And you don’t have to agree with climate change and the global response. But what’s happening regardless, is that the money is flowing in.

Many things will have to be done to address the climate issue, and carbon emissions area a big part of it.

  • For every tonne of CO2 emitted into the world, there is a cost – and it is rising FAST.

In January, Reuters declared the following:

“The value of traded global markets for carbon dioxide (CO2) permits grew by 164% to a record 760 billion euros ($851 billion) last year”.

And that means carbon prices have been on a tear since last year.

EUA Futures

Billions in capital have been flowing into the sector…

And even with all the hype, the outlook for growth remains very strong.

According to the Taskforce on Scaling Voluntary Carbon Markets (a private sector initiative started by the U.N.’s Special Envoy for Climate Action and Finance)…

  • The voluntary carbon markets will need to grow between 5x to 15x by 2030 in order to satisfy the growing demand for carbon credits.

Read that again. The size of the market could erupt up to 1500% higher.

With such tremendous growth, there are massive opportunities for investors.

But despite the flurry of activity in the sector, the carbon marketplace is still in its infancy.

This is good news for early investors as carbon credits are yet to become as mainstream of a commodity as, say, a gold bar or a barrel of oil.

And this leads to 2 massive Opportunities ahead of the larger carbon BULL MARKET.

Opportunity #1: Transparency

As things stand right now…

Carbon credits face a lack of accountability.

The main reason for this is that there’s no single, universal standard for carbon.

Instead of an official international standard all markets abide by…

Certification is left in the hands of a number of private third-party firms such as:

  • Verra,

  • Gold Standard, and the

  • American Carbon Registry.

And even among offsetting projects certified by these groups, many didn’t offset as much as they claimed to…

Didn’t last as long as they should have…

Had harmful side effects on local communities and environments…

Or some combination of all three.

When it comes to carbon offsets, poor recordkeeping and auditing processes greatly muddy the waters.

And then there’s what’s called “Double Counting” …

This is what happens when a carbon credit is claimed and retired twice.

The result is two tonnes of carbon emissions reductions claimed when only one tonne was actually offset, undermining the credibility of both the seller and the buyers.

This is the transparency part.

There’s another big opportunity for carbon credits: a lack of liquidity.

Opportunity #2: Liquidity

That same lack of a single unifying standard also makes it harder for people to purchase and trade carbon credits on the voluntary markets.

When you buy a gold coin or a bar from one of the multiple gold retailers around the world, you know what you’re getting.

Details such as:

  • Who minted the bullion,

  • How many ounces of gold it contains, and

  • The purity of the gold

…are often printed directly on the product itself, as well on the accompanying assay card.

Now…

When it comes to carbon credits, it’s a lot harder to get that same information.

Of course, this makes it harder for buyers to really figure the difference between different sources of carbon credits.

And while some commodity exchanges have been making headway into grouping similar carbon credits into tradeable categories…

It’s still very much a work in progress.

There’s a lot of work being done right now, as you read this, in order to hammer out the fine details of a global unifying standard.

One that would fit all requirements established in Article 6 of the Paris Agreement, which was finalized at the COP 26 climate conference in Glasgow last November.

What if I told you that there’s now a way for carbon credit projects to address both opportunities – transparency and liquidity – in one shot?

Because…

Carbon Blockchains are the Master Key

When talking about blockchain… we’re talking about a global tech market worth over $5 billion.

Being closely connected to crypto and NFTs, it’s all too easy to get caught up in their hype…

All the while forgetting it’s the blockchain technology that makes it all possible in the first place.

Here’s the thing.

It’s important to remember that blockchain technology is a serious, disruptive force for change that’s slowly and quietly changing how things are done in many different industries.

Industries ranging from automotive to telecommunications, including banking and even governments.

We’re more interested in one specific aspect today, though.

Because the benefits blockchain technology brings to the table are perfect for tackling the obstacles in the carbon markets.

Nothing is more transparent than a blockchain network.

On a blockchain network, everybody can see the full details for every node on the chain – starting from when it was first created and through all of its following transactions.

  • Double counting, for instance, would be a non-issue for carbon credits minted to a blockchain network.

Only one instance of any given carbon credit could exist on the network, and the retirement of credits would be irrevocable and impossible to falsify.

Integration with a blockchain network would also greatly benefit liquidity.

The ease of carrying out transactions on a blockchain network would make it much easier for carbon credits to change hands.

And not only would carbon buyers be able to easily confirm the details of the carbon credits they’re buying directly from the network itself…

They would also be able to conduct this transaction on any of the dozens of different decentralized exchanges that already trade other cryptocurrencies and tokens.

The combination of blockchain technology with the carbon sector makes a lot of sense.

That’s why a number of companies are starting to move into this niche.

A Brand-New Carbon Blockchain Platform is Here

But one company is already pre-positioned to capitalize on this opportunity.

Their platform for adding carbon credits to a blockchain is good to go.

And it’s set to work with any kind of carbon credit, whether new or pre-existing.

On top of this, they already have customers locked in, thanks to a strategic investment from a major international holding company.

That’s both carbon project clients for their services, as well as buyers for the carbon credits they’ll be onboarding to their blockchain.

But wait, there’s more! 

They’ll be able to earn money on both ends of those transactions.

And the best part is that this company has yet to be discovered by the incoming flood of capital to the sector.

DeepMarkit Corp.

(TSXV: MKT) (OTC: MKTDF) (FRA: DEP)

 

deepmarkit mobile

DeepMarkit Corp.

(TSXV: MKT) (OTC: MKTDF) (FRA: DEP)

 

(P) – People

A management team makes or breaks any project, so let’s start there.

DeepMarkit’s team is headed by CEO Ranjeet Sundher, who has spent nearly three decades in the capital markets.

Through his numerous leadership positions – CEO, President, Founder, Director, Ranjeet has been involved in raising over $100 million in the natural resources sector and battery technology.

He has been successful in all of these.

Ranjeet’s extensive experience with takeovers and M&A has allowed DeepMarkit (MKT.V and MKTDF:OTC)  to smoothly integrate their recent First Carbon acquisition into their business strategy.

And speaking of the First Carbon subsidiary, their team has been brought entirely into the fold alongside their MintCarbon.io platform. So, all of their expertise is still in place.

From CEO Mo Yang’s long career in building and growing tech companies involved in cryptocurrencies with a deep experience in blockchain and tech implementation…

To Derek McKenzie, a creative and forward thinker who founded Charlotte Street Associates a few years ago, working directly with institutional investors on a wide range of investment products…

To their blockchain tech and development team.

The crew that built MintCarbon.io from the ground up is all still there, ready to keep building on their technology.

Put all these elements together, and you have a team that’s ready to deliver results.

What about their assets…?

(R) – Resources

For a company like DeepMarkit (MKT.V and MKTDF:OTC), the most important resource needed to keep their operations running is cash.

The team at DeepMarkit are aware of this. It’s why they raised money during the First Carbon acquisition just a few months ago.

Right after, a strategic investment from Radiance Assets Berhad, a Southeast Asian investment holding firm with approximately a billion dollars under management.

This adds another $2.1 million to their working capital, and also brings their stake in DeepMarkit to ~10%.

With ~$2 million in the bank, low monthly burn rates as a tech company, and no outstanding debt…

DeepMarkit will have no trouble carrying out their business strategy for the time to come.

So now, let’s get to the meat of it.

(O) – Operations

A number of carbon tech companies have sprung up in the past few years.

DeepMarkit (MKT.V and MKTDF:OTC) distinguishes itself from its competitors by focusing primarily on the tech side of things with its proprietary MintCarbon.io platform.

Many of the other companies in the space so far have favored an approach that includes buying carbon credits or carbon credit streaming agreements…

And then registering the credits they obtain to a blockchain network or similar platform.

DeepMarkit does things differently.

The idea of registering new carbon credits to a blockchain is a solid one, and very much in growing demand as witnessed by a recent US$70 million financing for Flowcarbon, to develop a crypto-carbon ecosystem.

… Yet DeepMarkit is deep into its development phase, has completed a successful test of its platform with three verified projects, and is nearing commercial launch.

But there’s already millions upon millions of tons of carbon credits and countless projects in the system.

All of these would all benefit greatly from being registered to a blockchain network.

  • It’s these projects that DeepMarkit is choosing to focus on.

MintCarbon.io is a turnkey platform that allows for any carbon credit producer to tokenize their carbon credits via a smart contract… essentially turning their carbon credits into NFTs.

Now…

There are plenty of memes and misunderstandings about NFTs these days, no doubt.

Especially so when it comes to art and video games.

This is not the same thing.

These carbon credit NFTs are backed by an actual unique asset – 1 verified ton of carbon offsets.

All the benefits of the blockchain would be present:

  • Where the credit originated from,
  • The history of its transactions, and
  • The prevention of double counting through reliable tracking.

On top of that, these smart contracts would also be easily tradable on secondary markets like one of the many decentralized cryptocurrency exchanges such as OpenSea and Rarible. This would provide better liquidity options than what’s currently available in the carbon marketplace.

If it seems like a no-brainer… it just might be.

Now, if you’re wondering how DeepMarkit gets to benefit from this, it’s simple:

Not only does DeepMarkit get to collect up to a 10% minting fee the first time a carbon credit is onboarded to their MintCarbon.io platform…

Every single time that credit is traded, and changes hands, DeepMarkit can collect another royalty.

DeepMarkit will be able to build a revenue stream from carbon credit projects and companies looking to enjoy all the benefits of being on the blockchain.

This provides environmentally friendly projects an opportunity to monetize their assets for further development, through a shared royalty model

With their flexible MintCarbon.io platform, they’ll be a top choice for any company looking to do so.

What sets DeepMarkit apart from others in the crypto-carbon space is that the MintCarbon platform allows the project owner to showcase their assets to the world utilizing graphics, artwork, video and descriptions of the project.

Along with the customization, it also allows project investors can also easily interact with the project owners through the platform. 

And each carbon credit NFT can be embedded with unique characteristics and tracking details.

As an added bonus, MintCarbon.io is also run on the low emission Polygon network, meaning it’s more eco-friendly than many competitors.

On top of that…

DeepMarkit’s strategic partnership with international holding company Radiance Assets Berhad also gives them a leg up on their competition.

As part of their agreement, Radiance will be referring carbon projects under its umbrella to DeepMarkit for onboarding to the MintCarbon.io platform.

In exchange, companies in the Radiance portfolio with net zero targets will purchase the carbon credits needed to do so from DeepMarkit.

Radiance will be providing them both with clients for their MintCarbon.io carbon tokenization service…

As well as buyers for said tokens. And DeepMarkit will be collecting fees along every step of the way.

That means DeepMarkit benefits on both ends.

There’s more…

Radiance just recently committed to a two-year, $20 million dollar purchase agreement for carbon tokens minted on DeepMarkit’s MintCarbon.io platform. This is a big deal for DeepMarkit.

It guarantees them an initial revenue stream as well as demand for their tokens.

It also highlights just how much value DeepMarkit’s strategic partnership with Radiance brings to the table.

And if that sounds like too good of a deal for DeepMarkit…

Radiance currently owns 18% of DeepMarkit on a fully diluted basis, so any win for DeepMarkit is still a win for Radiance.

That’s what having skin in the game does.

(F) – Future

The Carbon sector and blockchain technology have been aligning rapidly in the last few years.

While the benefits of the blockchain are applicable to many sectors…

The carbon industry is essentially still being built from the ground up at this very moment.

Integrating with the most modern and up-to-date technology just makes sense.

The carbon sector will be around

for decades to come.

The fight against climate change will be an ongoing effort extending past even the end of the 21st century.

The more future-proof carbon credits standards become now… the better they’ll hold up in the decades to come.

The advantages provided by registering carbon credits to a blockchain are clear to both carbon credits producers as well as consumers.

When combined with the explosive growth potential of the carbon sector itself…

It creates ideal conditions for DeepMarkit to capitalize on with their MintCarbon.io platform.

And thanks to their partnership with Radiance Assets Berhad, DeepMarkit will have plenty of customers locked in to start growing their business with…

Maybe even a potential buyer down the road, if things go well enough.

That’s why we think they’re by far the best option around.

(I) – Investors

DeepMarkit’s recent acquisition of 100% of First Carbon was done by issuing shares rather than paying cash.

That means the money raised from DeepMarkit’s recent financing, as well as strategic investment from Radiance Assets Berhad, can be fully dedicated towards the company’s business operations.

Radiance owns 9.42% of the company’s shares. On a fully diluted basis, that number shoots up to 18%.

On top of this strategic investment, management and insiders own a further 25% of the shares outstanding, including the team brought over from First Carbon.

That’s the kind of commitment you want to see from a company’s management team.

After all, nothing aligns management with the interests of shareholders more than when they’re also shareholders themselves.

(T) – Triggers

When it comes to the voluntary carbon markets, every analyst can agree on one thing, no matter if they think it’s by a factor of 5, 15… or more.

  • The VCM will need to grow several times over by 2030 in order to keep up with accelerating demand.

Thing is…

This large influx of new carbon credits will only exacerbate the issues already faced by carbon offsets today.

The lack of transparency and liquidity stemming from multiple competing standards…

Poor record keeping…

And the absence of a global marketplace.

This is something regulators are hoping to correct with the Paris Agreement’s Article 6 provisions.

It will take time to hash out an exact set of criteria that everyone can agree on, however.

And there’s still a significant amount of work that needs to be done before Article 6 can be fully implemented on a global scale.

In the meantime…

DeepMarkit’s MintCarbon.io platform solves all of these issues, AND MORE, thanks to the secure nature of smart contracts on a blockchain.

Using DeepMarkit’s technology addresses the transparency and liquidity issues faced by carbon credits today…

And should be a no-brainer for any carbon offsetting project looking to jump on the opportunity the carbon markets offer.

That’s why Radiance Assets Berhad has already locked in DeepMarkit for its own portfolio of companies – guaranteeing DeepMarkit a steady stream of both customers for its services as well as buyers for the carbon credits it’s tokenizing for the next two years.

And Radiance owns a significant chunk of the company themselves. They’re committed to making the partnership work.

For all these reasons, DeepMarkit is poised to benefit from the oncoming storm in the voluntary carbon markets.

Capital is flooding into the carbon sector. This undiscovered gem could become a major player in the carbon economy going forward.

Regards,

The Carbon Publisher

Disclosure

CarbonCredits.com publishes introductory corporate profiles based on its assessment of the interest that its readers will have in them. CarbonCredits.com is paid a fee by each corporation profiled. CarbonCredits.com principals may hold directly or indirectly stock in the company’s mentioned, and from time to time buy and sell securities in the profiled corporations but not during any marketing or promotional periods. Opinions expressed in this profile as they relate to the outlook for metals, potential for projects, expectations about possible future corporate spin-offs, and potential for share appreciation are the personal opinions of the principals of CarbonCredits.com.

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