Neutral Secures $3.2M to Build Market Infrastructure for Environmental Assets - Neutral
Summary
The company is using the initial funding to launch a regulated exchange in Europe, with plans to expand into other jurisdictions in North America and Asia. "Environmental asset markets price and provide funding mechanisms for sustainable activities, such as carbon sequestration or renewable energy production, said Farouq Ghandour, Neutral CEO. Environmental assets are unique in that they are meant to represent similar outcomes, such as a ton of carbon captured or a megawatt-hour of renewable energy produced, but have characteristics that differentiate them. These differentiating factors make it difficult to design effective liquidity instruments, resulting in reduced trade efficiency and growth. These assets will need a new sort of venue, to enable liquidity and price discovery, so they can eventually make their way to end-buyers determined to use markets to reduce the impact of climate change.