Technology

Eddie Listorti, Founding Partner and CEO of Viridios Capital, Describes How AI Can Contribute to a Net-Zero Economy

Artificial intelligence (AI) can help in the battle against carbon emissions. The technology is rapidly improving, and current predictions indicate that AI could reduce emissions by five to ten percent by 2030 and add trillions in corporate sustainability value.

The carbon credit market is helping to reduce the emission of greenhouse gases. However, the voluntary carbon offset market has not been well-regulated and can be confusing. AI can help buyers understand the true values of the credits they purchase and therefore ensure that their money is going toward meaningful impact in climate change efforts and sustainable development goals.

Viridios Capital is a fintech developer, adviser and asset manager in the carbon markets and has recently announced its collaboration with S&P Global Platts to create innovative AI generated carbon indices. Here, Viridios Capital chief executive officer and co-founder Eddie Listorti describes how AI can contribute to a net-zero economy.

How AI Can Help

AI is capable of learning from experience. The massive amount of data that AI can collect and review allows the tools to identify trends that humans cannot. The technology can then make suggestions based on the patterns that it recognizes in its data set.

There are several ways AI might help in data analysis for carbon emissions, which we’ll explore below.

Monitoring Total Company Emissions

AI can monitor emissions from all areas of corporate activities, throughout the entire supply chain, and through to the consumer use of products. Satellites can also provide information for AI to analyze and incorporate into its understanding of the data.

AI tools can compile the data and estimate the places where information might be missing. AI can then provide estimates of emissions and indicate its degree of certainty in those estimates.

Predicting Future Emissions

AI can predict a company’s future level of emissions based on demand for their services, their current limitation efforts, and any new methods that the company is looking to incorporate. The data can allow the corporation to make informed decisions about their targets and how to reach them.

Increasing Productivity and Reducing Emissions

AI can analyze a company’s practices to identify areas in which transportation and production efforts need improvement. The increased efficiency will reduce emissions.

AI Can Help Companies to Select Carbon Offset Programs

Non-profit groups analyze carbon offset programs and will certify the ones that meet their standards. Currently, this is the way that companies can select the places to purchase offsets. There is no fixed price for reducing one ton of carbon, though, so it can be challenging to determine which program will yield the best results based on the investment.

AI can help by compiling data to value offsets for each program and compare it to each carbon setoff’s cost. Programs that offer carbon setoffs might be entirely diverse in their actual objectives. It can be challenging to ascertain the real impact of those programs.

AI data collection and analysis can more accurately compare two programs and inform the credit purchaser of the best option. This is the area that Viridios capital has offered a solution to.

Machine learning is in its early stages, but it is already proving useful in many industries. The complexities of climate science will likely benefit from AI as long as industries embrace the technology.

AI will likely have a role to play in reducing greenhouse emissions and the fight for climate change. As businesses work to reduce their carbon footprints, the analysis offered by AI can guide their decision-making.

About Eddie Listorti

Eddie Listorti is the Founding Partner and CEO of Viridios Capital in Sydney, Australia. Prior to his engagement in these venues, he was a Senior Executive at Australia and Zealand Banking Corporation (ANZ), a member of the Executive Committee of Dresdner Kleinwort (investment banking division of Allianz group), and Head of FX Trading Asia at Bankers Trust. In addition, Eddie Listorti has held numerous board positions in industry bodies, joint venture partnerships, and most recently, the Children’s Tumour Foundation of Australia.

Mr. Listorti got his Bachelor’s Degree in Economics from Newcastle University and has completed several courses in financial modeling and sustainable finance at the Cambridge Institute for Sustainability Leadership. His wide range of expertise includes FX trading, fixed income, commodities, carbon trading, and investment banking, to name a few.