From Numbers to Knowledge Exploring VAI Analytics

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From Numbers to Knowledge Exploring VAI Analytics

In an innovative leap forward for carbon markets, Viridios AI has introduced its Analytics Module, a cutting-edge platform designed to bring unparalleled transparency and insight into the complexities of carbon trading. 

 

The recent webinar offered a comprehensive overview of this transformative tool, promising to reshape how market intelligence is gathered and utilized.

 

Good reading!

Context and Background

The DIKW Pyramid, from the English Data-Information-Knowledge-Wisdom, also known as the Knowledge Pyramid, represents an informational hierarchy primarily used in the fields of Information Science and Knowledge Management. In this hierarchy, each layer adds specific attributes to the one preceding it.

 

When applying the DIKW Pyramid to gain a better understanding of the carbon market, we can structure it as follows:

DIKW Pyramid

Data

The foundational level consists of raw data. For example, the specific project VCS12345-v2020 has a price of $4.80, an ‘AA’ rating, and contributes to SDGs 1, 2, 4, 13, and 14.

Information

This layer interprets the data to give it meaning. The project is characterized as liquid due to its activity in the market, it has been rated by rating agencies, and it delivers co-benefits, which are enhancements or additional benefits related to the Sustainable Development Goals (SDGs) it supports.

Knowledge

Adding context to the information, we understand that the project’s price is lower than the average for similar projects. Only 5% of projects in the same market segment achieve a similar or higher rating. The project has also seen significant retirement by the corporation ABC, indicating a strong market interest or preference for this project.

Wisdom

At the apex of the pyramid, wisdom is applied knowledge. The analysis suggests that one should consider buying carbon credits from this project and potentially explore an offtake agreement with the project developer, indicating strategic action based on the understanding of the market’s data, information, and knowledge layers.

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VAI Analytics Module

Now, diving deeper into the VAI Analytics Module will be easier.

VCM / Overview

VCM / Overview

In the ‘Overview’ dashboard, you will have access to various pieces of information about the Voluntary Carbon Market (VCM).

 

By default, the platform will show you data from the previous 24 months, including the number of projects in scope across different registries.

 

You will also be able to see the lowest and highest prices for all the vintages available on the platform, time series separated by vintage, and maps displaying project counts and prices by country, in addition to:

 

  • Average price by Segment and Standard
  • Time series by Region and Standard
  • Projects by Standard and Segment

VCM / Carbon Credits

VCM / Carbon Credits

Highlighting the issuance and retirement dynamics of carbon credits, the Carbon Credits dashboard shed light on the supply-demand intricacies within the VCM. 

 

By providing an in-depth analysis of these trends, the Analytics Module empowers users to comprehensively understand the market’s liquidity and activity.

 

In this dashboard you can access and compare data in the following charts:

 

  • Top 5 Projects – Issuances
  • Top 5 Projects – Retirements
  • Issuances by Standard, Vintage and Segment
  • Retirements by Standard, Vintage and Segment
  • Evolution of Issuances and Retirements by Segments and Standards
  • Issuances and Retirements by Year

VCM / Market Value

VCM / Market Value

Understanding the market’s size and its value is crucial for stakeholders. 

 

The ‘Market Value’ can help you calculate the outstanding market value and surplus, translating the complex flow of carbon credits into tangible dollar amounts, thus offering clarity on the financial landscape of the VCM.

 

In this dashboard you can access data in the following charts:

 

  • Top 3 by Outstanding Market Value
  • Outstanding Value by Segment
  • Outstanding Credits by Segment/Vintage
  • Top Segment by Vintage
  • Credits by Segment

VCM / Eligibilities

Eligibility criteria for carbon credits vary across different compliance regimes and voluntary programs. 

 

The ‘Eligibilities’ dashboard simplifies this complexity, enabling users to filter and find credits that meet specific eligibility criteria, such as those applicable for NDCs under the Paris Agreement or CORSIA for international aviation.

VCM / Rating

VCM / Rating

Project ratings play a pivotal role in assessing the risk and quality of carbon credits. 

 

The ‘Rating’ tab integrates ratings from leading agencies (BeZero and Sylvera), offering a detailed view of the rated projects within the VCM. This feature aids investors in making informed decisions by evaluating the credibility and environmental impact of various projects.

 

In this tab you can access data in the following charts:

 

  • Project Count by Segment
  • Projects with Ratings
  • Average by BeZero Rating
  • Average Price by Sylvera Tier

VCM / Rating

Australia / Overview

With unique segments and methodologies, this tab offers an in-depth overview of the projects, issuance data, and market trends specific to Australia, catering to users interested in this burgeoning market.

 

In this tab you can access data in the following charts:

 

  • ACCUs by Vintage
  • ACCUs by State – Top 3
  • Projects by Segment and State

Webinar Recording

The recording of the ‘From Numbers to Knowledge Exploring VAI Analytics’ webinar is available here:

If you are interested in learning more about the VCM and the Australian market, book a free demo with our specialists! 

Book a Demo

Speak with one of our carbon specialists to learn more about the voluntary carbon market and the VAI platform.

About the author:

Mariana Marins is Content Marketing Manager at Viridios AI. Mariana has 9 years of experience in marketing across different markets and companies, both in the non-profit and private sectors. Her background includes marketing and GTM strategies, CX, inbound marketing, SEO, and content production.She holds a Bachelor’s degree in Communications/Marketing, a MBA in Business Management and Design Thinking, and an Innovation Leadership Program Certificate from The Hebrew University of Jerusalem.

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