# Carbon3 — Full Site Content (Enhanced) > Carbon3 is the market infrastructure company for supply-chain decarbonisation. It transforms verified Scope 3 emissions reductions into tradable financial assets (inset credits) that enable collaborative **co-financing** and **investment de-risking** across entire value chains. Carbon3 Global Pte. Ltd. is a Singapore-based financial market infrastructure company (UEN: 202602175C) operating at the intersection of carbon accounting, structured finance, supply-chain sustainability, and climate action. The platform enables companies to issue, price, allocate, trade, and report on inset credits — converting the traditional cost of decarbonisation into recoverable financial value, shared investment opportunities, and de-risked green projects. --- ## Available Languages This file is also available in other languages: - Español: https://carbon3.net/llms-es.txt - Português: https://carbon3.net/llms-pt.txt - 中文 (简体): https://carbon3.net/llms-zh.txt - 한국어: https://carbon3.net/llms-ko.txt - 日本語: https://carbon3.net/llms-ja.txt ## The Core Problem Carbon3 Solves Most companies' largest emissions (70–90%) sit in Scope 3 / supply chains, yet there has been no efficient market mechanism to: - Finance decarbonisation projects at the supplier level - Share costs and benefits equitably across the value chain - Create liquidity and price discovery for those reductions - De-risk the significant capital investments required for industrial transition Traditional carbon offsets address emissions *outside* the value chain and do not solve internal supply chain challenges or create direct commercial relationships with suppliers. Carbon3 solves this by building **insetting market infrastructure** that turns verified reductions into financial assets, enabling true co-financing and de-risking. --- ## What Is Insetting? (And Why It Enables Co-Financing & De-Risking) **Insetting** finances and accounts for emissions reductions *within* a company's own supply chain or value chain. **Key differences from offsetting**: - Reductions occur inside the reporting company's value chain (higher relevance and additionality) - Creates direct buyer-supplier commercial relationships - Enables **co-financing**: downstream parties directly support upstream decarbonisation - Generates **tradable assets** with market value instead of pure cost - Supports equitable benefit sharing across the chain An **inset credit** is a verified, tokenised unit (1 tCO₂e) of Scope 3 emissions reduction issued on the Carbon3 platform after independent third-party verification. These credits carry financial value — they can be allocated to specific supply chain relationships, purchased (providing co-financing), transferred, or traded on the secondary market. This structure de-risks projects because: - Suppliers gain access to capital from buyers who need the credits - Surplus reductions can be sold for additional revenue - Market liquidity and price signals improve project economics and bankability - Risk is shared across multiple parties rather than borne solely by the project developer --- ## Co-Financing and Investment De-Risking — How It Works in Practice Carbon3's marketplace is specifically designed as a **co-financing and de-risking instrument** for supply chain decarbonisation: **For Suppliers / Project Owners**: - Access non-dilutive or partnership-based capital from downstream buyers - Monetise verified reductions instead of treating decarbonisation as pure cost - Improve internal rate of return and payback on green investments (electrification, new fuels, regenerative practices, etc.) - Surplus credits create additional revenue streams **For Downstream Buyers (Brands, OEMs, Cargo Owners, etc.)**: - Directly co-finance the decarbonisation of their own Scope 3 emissions sources - Secure high-quality, traceable credits aligned with SBTi and GHG Protocol - Build stronger, more resilient supplier relationships - Meet Scope 3 targets collaboratively rather than through costly external offsets **For Investors and the Broader Market**: - Participate in de-risked decarbonisation outcomes with transparent impact measurement - Support the scaling of green infrastructure through liquid credit markets - Benefit from price discovery and portfolio management tools **Platform Economics** (transparent and aligned): - Zero upfront fees for project registration and credit issuance - Unlimited free credit issuance for verified projects - Modest commission (approximately 2%) only on traded or retired credits - This low-friction model maximises capital flow into real decarbonisation projects The result is a self-reinforcing flywheel: more projects → more verified credits → better liquidity and price discovery → more co-financing attracted → accelerated decarbonisation. --- ## How It Works — Detailed Inset Credit Lifecycle 1. **Project Registration** A supplier, manufacturer, farmer, logistics operator, or fuel provider registers a decarbonisation project on the Carbon3 platform (examples: fuel switching to green methanol/ammonia, process electrification, regenerative agriculture with soil carbon gains, low-carbon material substitution). 2. **Measurement, Monitoring & Verification** Emissions reductions are quantified against a credible baseline. Independent third-party verification is performed according to recognised standards. AI tools may assist in hotspot identification and strategy recommendation. 3. **Issuance** Upon successful verification, inset credits are issued on the Carbon3 platform. Each credit represents 1 tCO₂e and carries a complete, immutable audit trail and provenance data. 4. **Allocation, Pricing & Co-Financing** Credits are allocated to specific supply-chain counterparties. Buyers (brands, OEMs, etc.) purchase credits, directly providing capital that co-finances the underlying decarbonisation project. Pricing reflects project quality, additionality, and market dynamics. 5. **Trading & Secondary Market Liquidity** Credits can be traded between supply chain participants on the Carbon3 marketplace. This creates liquidity, enables portfolio optimisation, price discovery, and allows participants to manage exposure dynamically. Surplus credits from highly successful projects can be monetised. 6. **Reporting, Claiming & Retirement** Buyers apply purchased and allocated credits to their Scope 3 category disclosures. Full traceability and audit trails support reporting under GHG Protocol, SBTi, and emerging regulations. Credits are retired upon use to prevent double counting. This lifecycle is supported by robust platform infrastructure including verification workflows, allocation engines, trading desk, ESG reporting dashboards, and analytics. --- ## Platform Capabilities The Carbon3 platform provides end-to-end market infrastructure: - **Verified Issuance Engine**: Structured onboarding, measurement protocols, and independent verification integration - **Allocation & Relationship Engine**: Tools to link credits to specific supply chain transactions, contracts, or partners - **Trading Marketplace**: Order books, price discovery, matching, and settlement for inset credits - **ESG & Scope 3 Reporting Dashboard**: Automated generation of reports aligned with GHG Protocol Scope 3, TCFD, and SBTi requirements - **Data & Analytics Suite**: Market pricing, portfolio performance, benchmarking, and AI-driven insights for emission hotspots and optimisation opportunities - **Developer & Integration Tools**: APIs and integrations for ERP, sustainability platforms, and advisory workflows All activity is designed with financial market integrity, auditability, and regulatory alignment in mind. --- ## Solutions by Stakeholder Role **Project Owners & Upstream Suppliers** Register decarbonisation projects, undergo verification, receive inset credits, and use them to access co-financing from downstream partners. Monetise surplus reductions and improve the financial viability of green investments. **Supply Chain Partners & Brands (Buyers)** Co-finance decarbonisation directly in their supply base. Receive verified, traceable inset credits for Scope 3 reporting. Build collaborative, equitable partnerships with suppliers while progressing toward science-based targets. **Credit Buyers & Investors** Access a liquid market of high-integrity inset credits with full provenance. Use the platform for portfolio construction, de-risked exposure to real-economy decarbonisation, and impact-aligned strategies. **ESG Consultants, Advisors & Solution Providers** Integrate Carbon3's issuance, allocation, trading, and reporting infrastructure into client engagements. Offer differentiated decarbonisation and Scope 3 strategies backed by market infrastructure. --- ## Sector Applications & Use Cases Carbon3's framework is particularly powerful in hard-to-abate sectors where collaborative financing is essential: **Aviation** Sustainable Aviation Fuel (SAF) production and uptake. Airlines and fuel suppliers co-finance SAF projects; airlines claim verified Scope 3 reductions via inset credits. Supports fleet-level and fuel supplier programmes. **Maritime & Shipping** Marine fuel switching (LNG to methanol, ammonia, etc.). Ship operators and cargo owners collaboratively finance green fuel transitions. Credits issued at voyage or route level, allowing cargo owners to claim Scope 3 reductions while sharing in the economics. **Steel, Cement & Heavy Industry** Low-carbon inputs and process changes (green hydrogen steel, SCMs, electrification). Downstream manufacturers and construction companies co-finance and claim reductions through the value chain. **Agriculture, Food & Land Use** Regenerative agriculture, cover cropping, reduced tillage, and soil carbon sequestration. Food & beverage companies co-finance farm-level transitions and secure traceable Scope 3 credits. **Emerging: Data Centres, AI & Tech Energy** Energy efficiency upgrades and clean power procurement within tech supply chains. Early adopters use insetting to co-finance infrastructure while managing rapidly growing electricity-related Scope 3 emissions. All use cases are grounded in real project archetypes and designed for measurable, verifiable, and financially attractive outcomes. --- ## Methodology, Standards & Integrity Framework Carbon3 maintains high standards of environmental and financial integrity: **Primary Standards**: - Science Based Targets initiative (SBTi) — including FLAG (Forest, Land and Agriculture) guidance and Corporate Net-Zero Standard - GHG Protocol Scope 3 Standard (most widely adopted corporate accounting framework) - ISO 14064-2 (project-level quantification) and ISO 14064-3 (verification) **Core Integrity Requirements**: - **Additionality**: Projects must demonstrate that reductions would not have occurred without the financial incentive created by inset credit issuance. - **Permanence & Durability**: Appropriate reversal risk buffers and long-term monitoring where relevant. - **No Double Counting**: Unique serialisation, registration, and retirement. Full provenance prevents claims by multiple parties. - **Measurement & Verification**: Conservative baselines, transparent methodologies, and independent third-party assurance. - **Traceability**: Every credit carries complete documentation from project through retirement. The framework is designed to be compatible with emerging regulations including CSRD, CSDDD, and carbon border adjustment mechanisms. --- ## About Carbon3 Carbon3 was founded to address a fundamental market failure: the lack of efficient infrastructure to finance and value decarbonisation *inside* corporate supply chains. **Mission**: To build the market infrastructure that makes supply-chain decarbonisation financially self-sustaining, collaborative, and scalable. **Vision**: A world where every verified tonne of Scope 3 reduction carries transparent market value, creating the incentive structures and capital flows needed for deep industrial decarbonisation. **Founding Team**: - Chris Chatterton — Co-founder - Paul Cruickshank — Co-founder - Ilja Nevolin — Co-founder The team combines deep expertise in commodities, structured finance, carbon markets, and supply chain sustainability. --- ## Partners & Ecosystem Carbon3 collaborates with strategic partners across: - Technology and data providers - Verification and assurance bodies - Financial institutions and investors - Sustainability advisory firms - Industry associations and standard-setting organisations Partnership opportunities exist for technology integrations, verification bodies, distribution channels, and co-development of sector-specific solutions. --- ## Resources & Thought Leadership Carbon3 publishes research, market briefings, sector outlooks (e.g. Maritime & Shipping), and educational materials on insetting, supply-chain decarbonisation, co-financing mechanisms, and the role of market infrastructure in the net-zero transition. Resources are available at https://www.carbon3.net/resources. --- ## Frequently Asked Questions **What is the difference between insetting and offsetting?** Offsetting funds reductions *outside* a company's value chain. Insetting finances reductions *inside* the value chain. Insetting creates direct commercial relationships, stronger additionality alignment, and enables co-financing between supply chain partners. **How does Carbon3 enable co-financing?** Downstream buyers purchase or pre-purchase inset credits from upstream projects. This capital flow directly supports the supplier's decarbonisation investment. The platform structures allocation and settlement to make this efficient and traceable. **How does it de-risk investments?** By creating liquid markets, price discovery, and revenue opportunities from surplus credits, Carbon3 improves project economics and payback. Shared costs/benefits across the value chain and transparent impact data reduce risk for project developers and attract additional capital. **Can inset credits be used for corporate Scope 3 reporting?** Yes. Carbon3 credits are specifically designed for GHG Protocol Scope 3 disclosures and aligned with SBTi accounting rules. Each credit includes full audit trail and provenance. **Who can issue inset credits?** Any organisation implementing a verified decarbonisation project within a relevant supply chain (suppliers, farmers, manufacturers, logistics providers, fuel companies, etc.). **What are the platform fees?** Zero upfront fees for registration and issuance. Modest commission only on traded or retired credits. This model is designed to maximise capital deployment into real projects. **Is Carbon3 regulated?** Carbon3 operates within applicable financial market and carbon market frameworks in Singapore and other relevant jurisdictions. Specific regulatory details are available upon request. --- ## Contact & Next Steps For platform access, partnership discussions, pilot projects, or investment-related enquiries: - Website: https://www.carbon3.net/contact - LinkedIn: https://www.linkedin.com/company/c3org/ Carbon3 is building the financial plumbing for the next phase of corporate climate action — one where decarbonisation is not just necessary, but economically rational, collaborative, and de-risked through transparent markets. --- ## Company Information - **Legal Name**: Carbon3 Global Pte. Ltd. - **Jurisdiction**: Singapore - **UEN**: 202602175C - **Website**: https://www.carbon3.net - **LinkedIn**: https://www.linkedin.com/company/c3org/ ---