Xeptagon to empower climate action with the implementation of an Emission Trading System

• Published 8:00 AM EDT, Fri Apr 25, 2025

Sri Lanka Carbon Registry

As climate action increasingly dominates global initiatives, mechanisms such as Emissions Trading Systems (ETS) are proving to be vital in enabling nations and organizations to meet their emissions reduction objectives efficiently and most importantly transparently. At Xeptagon, we are pleased to announce the launch of our ETS capabilities, which are designed to be robust, secure, and seamlessly integrated with our comprehensive suite of carbon market solutions.

Emissions Trading Systems (ETS) present a powerful opportunity for companies and governments to embark on a journey toward a sustainable future. By placing a price on carbon, ETS transforms emissions into valuable, tradable assets, inspiring businesses to reduce their carbon footprint and lead the way in the fight against climate change. Integrating with an ETS allows entities to generate a new source of revenue by trading surplus of emission allowance and investing when price of carbon credit is lower to sell them later for a higher price, hence inventing a new instrument for financial gain. Been involved in an ETS also allows entities to be ahead of the curve with tightening regulatory policies around climate action. Above all been part of a transparent ETS, allows entities to appeal for substantiality and climate conscious investors, and customers.

Backed by a generation of preceding products and projects such as developing the UNDP's, Zimbabwe's, and Namibia's national carbon registry - Xeptagon is now excited to offer its ETS capabilities to clients enabling carbon market compliance.

What is an ETS and why it matters to your company or nation?

An Emission Trading System is a cap-and-trade system, in which a regulatory body sets a maximum limit to the total Green House Gas emission (GHG) you can emit. The cap may be set in specification with the industry your company operates in. Participants receive allowance for carbon emissions, by free allocation or auctioning, which can then be traded in a regulated marketplace.

In the instance you emit less than the cap, you can sell to make a profit or bank your allowance for a pre-defined period as set by the regulatory body, depending on factors such as future market outlook and price of carbon credits at present. You can similarly purchase allowance if you are emitting more than the cap.

For prospective clients, having an ETS would allow for economic prosperity with the financial incentives associated with an ETS and the opportunity to seamlessly integrate their sustainability goals, into a transparent and regulated system.

Why choose Xeptagon's ETS?

We at Xeptagon have developed the ETS infrastructure to tailor for the growing needs of both governments and enterprises, with focus on security and transparency which are critical for an ETS.

  • Proven Track Record

    Having successfully integrated Hedera guardian framework for the Measurement, Reporting, and Verification (MRV) data collected and linked to tokenized assets managed in the UNDP's National Carbon Registry, has demonstrated Xeptagon's capabilities to deliver for global frameworks. Xeptagon also has experience developing carbon marketplaces for ventures in South Korea and Hongkong.

  • Compatibility and functions

    Xeptagon designed ETS systems accommodate spot trading, over the counter (OTC) trading for low liquidity assets, and auction trading which allows to host real-time online sales of emissions. Xeptagon's trading platform also allows for limit, market, stop-limit, stop-market orders to be placed to accommodate a seamless emission trading experience. In addition to this our ETS system supports both primary and secondary markets.

  • Secured and Transparent

    Xeptagon incorporates blockchain technology to prevent the single biggest concern with ETS, which is double counting. When you are a stakeholder of a Xeptagon developed ETS, you can be certain of the integrity of each transaction.

  • Existing product suite for easy integration

    Xeptagon offers a carbon registry platform and an MRV system for easy integration of an ETS. Xeptagon can also offer customizable and scalable systems to tailor for the client's needs.

Whether you are a government agency or a private sector player preparing for carbon pricing mandates, Xeptagon's ETS solution provides the speed, security, and framework you need. By choosing Xeptagon, you are not just selecting a software solution; you are gaining a trusted partner in your climate journey.

Contact our climate tech team at info@xeptagon.com to schedule a demo.