All this new data requires new technologies and faster delivery mechanisms to ensure the market can adequately respond. Desktop and application programming interface (API) delivery of core energy data enables traders to not only see the value of transition commodities, but to trade them with the best information in real time.
APIs allow data to be accessed, integrated and queried in the way that best suits the user to power digital transformation – and unlock new value. They are one of a number of delivery channels employed by Platts, which also offers its pricing data, news, and analytics via the Platts Dimensions Pro desktop platform and mobile application.
In combination with such data delivery systems, technologies like artificial intelligence (AI) and blockchain can help improve processes and speed of trading in commodity and energy markets. They also enable companies to model the complex global integrated energy system and navigate the flood of data generated by increased monitoring of commodity and energy supply chains.
The same technologies have great potential to support trading of assets critical to the energy transition, increase transparency and facilitate emissions reductions in supply chains through more efficient use of resources.
For example, in the maritime sector, numerous digital initiatives are emerging to track fuels and traffic and monitor GHG emissions, while blockchain can also ensure traceability in the supply chain for key energy transition raw materials such as battery metals.
AI is also being leveraged in the voluntary carbon market, bringing much-needed transparency. In partnership with Viridios, Platts launched six AI-driven Carbon Credit 'CARBEX' Indices as well as their respective monthly averages. Viridios' AI software is trained using Platts commodity data, in addition to Viridios' own extensive database of carbon credit transaction data. The software generates values for a range of carbon credits, based on historic relationships between a broad data set of carbon credit transactions and related commodity prices.
These market developments signal that we are at a new juncture in the energy transition. Fossil fuels continue to be a mainstay of many economies, while renewable energy sources are growing at a rapid pace and "non-physical" commodities like carbon credits and other environmental attributes are creating fresh opportunities and challenges.
From enabling trade of environmental attributes, to analyzing and relating multiple factors that impact value, technology will play an ever-greater role in valuing the commodities and energy products that will drive decarbonization.
Without high-quality, timely data that is easily accessible and analyzable, technology will be insufficient, and this will remain a core concern of the energy sector for years to come. In the short and long term, energy transition will be fueled by information.
