disintermediation of the carbon value chain

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Carbon Credits – A Unique Store of Value from Green Energy Production

Over the past 5 years Carbon credits have achieved a Sharpe Ratio of 3.35, during the same time Bitcoin had a Sharpe Ratio of 1.66 while the S&P 500 had a ratio of 0.99 and gold a ratio of 1.02. This clearly demonstrates the opportunity this new asset class represents in providing a risk reward ratio that far exceeds other major investments and is uncorrelated to other asset classes.

Tokenization of real assets enabled by blockchain technology is transforming the existing financial infrastructure and challenging modern portfolio theory. Sinan Energy’s Tokenized Carbon Credits are one of the most exciting investment opportunities at present representing a brand-new asset class with characteristics that can enhance strategic asset allocation and help investors build portfolios with high risk-adjusted returns.

Carbon Credits have experienced tremendous returns driven by the The Global Drive to Net-Zero in which corporations and governments are under intense pressure to reduce carbon emissions. A key milestone is the Net-Zero targets set for 2030 by a significant number of the top 5000 global companies and almost all industrialized governments together representing more than 90% of global economic activity.

With the current trajectory of economic activity it is impossible for these companies (and governments) to undertake the operational changes necessary to eliminate greenhouse gas emissions to meet the 2030 Net-Zero targets and therefore it is not just likely but inevitable that they would need to purchase carbon credits. This would make quality carbon credits one of the most sought-after assets. Currently demand for carbon credits already far exceeds supply creating one of the most liquid asset classes.

The creation of this new asset class generates a rare and powerful diversification benefit because it generates a unique return stream which has a profound impact on the ‘return-to-risk’ profile of a portfolio and consequently is more likely to lead to sustainable wealth creation.

– Globally, commercial and industrial sector energy users account for more than 60% of all power produced making this one of the largest global markets in any industry running into trillions of dollars

– Decentralized Independent Power Utilities like Sinan Energy now compete favorably against fossil fired, centralized state owned utilities and provide clean energy at lower tariffs to commercial and industrial sector clients

– The move from centralized fossil fired power to renewable energy plants  allows a blockchain enabled decentralized utility like Sinan to control the carbon credit value chain from renewable energy source to market for all carbon credits that it generates

– Sinan utilizes tokenization and DeFi capability to enable individual, institutions and corporates anywhere in the world to trade, invest or offset carbon credits  derived from the operation of Sinan’s own utility-scale renewable energy plants

– Sinan further enables other renewable generators to seamlessly integrate into its platform thereby increasing the volume of carbon credits available for investment or offsetting

Sinan Energy Token

Renewable energy is one of the fastest growing markets with an unprecedented level of investment and global adoption by energy users, especially commercial and industrial sector businesses. Last year over $286 billion dollars was invested in renewable energy, more than six times higher than a decade ago.

Similarly, carbon credits markets have boomed in recent years, driven by the need to reduce harmful atmospheric emissions to prevent accelerating climate change. Most of the top 5000 corporations, who combined make up over 80% of the world’s GDP, have adopted net-zero targets for 2030. This has led to a boom in carbon credit demand with prices increasing over 700% in the last four years alone. According to a report by Deloitte, carbon credits are expected to increase fifteen-fold in value over the next decade as the global drive to Net Zero carbon emissions gathers momentum.

Sinan accelerates the commercial deployment of new renewable energy technologies by integrating these technologies into a blockchain enabled tokenization platform to build innovative plants that generate twin revenue streams, one stream from the sale of energy and an additional revenue stream from tokenized carbon credits. 

Having two revenue streams means Sinan can deploy new renewable energy technologies sooner than others and accelerate their commercialization and mass deployment.

Sinan’s blockchain platform enables it to tokenize, record and verify carbon credits that are generated from its own plants. This allows it to achieve international certification and hence trade carbon credits on global carbon markets.

This integrated carbon credit value chain from source to market provides a strong revenue stream which combined with the sale of energy underpins the intrinsic value of the SET token..

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