Vancouver-based ShiftCarbon Inc. (SHIFF) is offering tools for companies to measure their climate impact and then connect to a global carbon credit platform to facilitate purchases of greenhouse gas offsets.
Led by CEO Wayne Lloyd, ShiftCarbon's platform connects to many major carbon markets around the world so users can trade carbon credits on global exchanges, he told SustainableBiz.
“The business is about connecting companies and our customers to the actual credits and getting transparency around those credits,” Lloyd said.
Purchasing carbon credits requires buying them through multiple venues to create a portfolio, he said, which creates complexity. ShiftCarbon works to “harmonize all that into one tool.”
ShiftCarbon is not stopping at carbon credits. A letter of intent published in late August to acquire a private U.K.-based company named Zero Carbon Technologies indicates its interest in battery recycling as well.
Lloyd said he was motivated to offer ShiftCarbon’s service as he saw most people in the market were building carbon credit companies in the vein of e-commerce services “where you pick and click your credit you want.”
Customer feedback indicated people sought a more holistic solution and have the entire market open to them.
The company was formerly called TraceSafe Inc. with a focus on Internet of Things, but renamed itself ShiftCarbon in December 2022 and made a pivot to sustainable solutions.
ShiftCarbon is a B2B service that works in consultation with a company, and then its technology serves as the delivery mechanism for carbon credits. It has connections and registry accounts with all the major carbon credit markets, so it can function as essentially a clearing house, Lloyd explained.
Its first offering is a carbon calculator called Focused Footprint, which Lloyd said helps businesses understand their climate impact. It includes industry-specific tools for each vertical.
Its first efforts were in the marine sector, specifically shipping and cruise ships. It then expanded into agriculture and manufacturing.
“We can find you a project or a series of projects that meets either a fundamental goal you have as a company, or which projects you’d like to support, or as a price point per tonne of carbon that you want to hit, or a combination of both,” Lloyd said.
The carbon offsets range from reforestation projects to supporting carbon removal technologies and buying “blue carbon credits.”
ShiftCarbon's measurement tools are sold to companies, and a fee is charged for each carbon credit sold.
Verifying its credits
A critical challenge of carbon credits is solidifying trust in their use. Reports have criticized the industry for poor verification standards or being ineffective.
Lloyd said ShiftCarbon performs intensive research on the quality of the credits before they are added to its platform. ShiftCarbon qualified with carbon credit verification organizations Verra and Gold Standard.
ShiftCarbon also supports some non-registered carbon offset projects.
“We still support non-registry items as long as we think they are pushing the industry into a better area and innovating on things that are going to make a big impact.”
Where ShiftCarbon stands now
Lloyd said ShiftCarbon will achieve revenues approaching $5 million in 2023, noting his company has grown fast off a small base.
The CEO did not disclose the names of companies it serves, but said large financial institutions and energy companies with a global reach are engaging with its platform.
Patch, the San Francisco-based company behind a market platform for carbon removal projects, partnered with ShiftCarbon earlier this year to bring ShiftCarbon's carbon credits onto the Patch marketplace.
ShiftCarbon is also looking to raise funds. Lloyd expects to raise "under $10 million" in its next phase.
Proposed acquisition of Zero Carbon Technologies
In a significant turn from its conventional business, ShiftCarbon expressed interest in acquiring Zero Carbon Technologies, a British battery recycling company.
The proposed acquisition, which Lloyd stressed is not finalized, is part of a corporate reorganization to help ShiftCarbon become a private, non-listed company.
If the acquisition is finalized, ShiftCarbon will be spun-off as an independent entity residing in its fully-owned subsidiary Wishland Properties Ltd. with no change to its mission. The public company's name would be changed to Zero Carbon, which would continue development on battery technology.
Lloyd said the proliferation of electric vehicles caught the attention of ShiftCarbon, which raised the problem of the environmental toll of extracting the resources to manufacture the batteries.
Efforts to reduce the environmental impact of batteries is a “big net-positive,” he said.