Econetix - verifying, managing, and scaling climate action with technology, transparency, and trust
Econetix helps organizations verify, manage, and scale climate action with technology, transparency, and trust, delivering measurable progress toward global sustainability and a truly net-zero future.
Transcript
Paul Nimmerfall:Thank you so much. I think it has been a phenomenal event so far. I'm Paul. I'm one of the founders of Econetix. We're a global carbon asset management company. If you haven't realized, we have a stand right outside close to the coffee machine, so please do drop by. And in order for you to recognize me, I have put on a super, super ugly t-shirt, so you can't really miss me. When I listened this morning to what Richard has said, he mentioned that net zero will certainly heavily affect the industry. But nevertheless, in the discussions we had so far yesterday and over the day, I realized that it's not a big topic. Topic so far, so people don't really speak about it. And I wondered why. And in the end, I think that if we are brutally honest, industries, and especially the aviation industry, is just simply not climate-friendly. That's just a reality we have to acknowledge, and there are only so many things you can actually do. So What can you do? You can, you could invent more efficient airplanes that do not emit CO2 anymore. And I think you all realize like that's not a really good option. You could use SAF. We also learned from Rich this morning that global supply is roughly around 1% and super pricey. And in the end, you could also, like that's the third option, rely on carbon markets. And that, that's our niche. And the carbon market for the aviation industry, Corsia, you all know it. It's, it's a single market. It's relatively stable. It's global. So it reaches out to all airlines on the planet and it's relatively cheap. And I always remember there is, there's one old Joe Biden quote because I realized that Most of you seem to not like Corsia, and I kind of understand it because it's an— what you consider it's an unnecessary cost. And the George Joe Biden quote is, don't compare me or Corsia to the Almighty, but compare it to the alternative. So the alternative to Corsia is a fragmented market. Different carbon market for each region. And in the EU, it would be the EU ETS, which is roughly 3 or 4 times the price of Corsia. So what we as Econetix do is actually pretty simple. So we are one of the leading Corsia suppliers. We are an official partner of IATA. We develop projects that tick all the regulatory boxes. We develop projects that do not pose a reputational risk for you. And in the end, we develop projects that are cheap because we believe that CO2 is a commodity product, and commodity products in the end need to be as cheap as possible. So where do we stand right now? So right now Airlines, so most of you guys, need to buy 180 million credits until end of next year. And at this moment, global supply is roughly 30 million, and a big chunk of that comes from our company. So you don't need to be like a math genius or have a PhD in economics to understand if demand is very high and supply is very low, prices will go up. And what we have seen actually, like the, the big trading houses, they have realized that and they heavily go into the market right now. There is enormous interest. And like the commodity traders, like they, they are the greedy people that care about money. And I kind of liked it to a certain extent because it's, it's straightforward. And when these big commodity traders go in the market, it tells me the market is ready and it's time to act now. So I will shut up now, but I would be extremely interested to having a discussion with you about your view on Corsia, whether that's something that is relevant at the moment. I believe very much so. Thank you for your attention, and I'm happy to speak to you later. Thank you so much. Thank you.
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