AeonLoop
Environmental finance architecture

Capital markets access for natural capital.

AeonLoop advises governments and large institutions on the instruments, programs, and market infrastructure through which environmental assets reach institutional capital.

The distinction

Structuring is what makes a market.

Describing a financial product as green tells an investor what it funds. It does not, on its own, create a market in the environmental benefit itself. Carbon credits, mitigation outcomes, and measured natural capital carry real value, but that value only becomes investable once it is wrapped in a structure an institution can price, custody, hold, and transfer under rules it already applies.

Orderly capital market formation for environmental assets requires something different: a novel assembly of non-novel parts, where the assembly is built around the specific requirements that make an asset liquid, tradable, and a durable store of value. That work is what turns an environmental product into an environmental asset, and it is what AeonLoop does.

InputEnvironmental products
  • Measured outcomes
  • Credits and units
  • Project data
AssemblyExisting legal and financial parts
  • Legal title
  • Custody and settlement
  • Sovereign authorization
  • Risk allocation
  • Measurement and reporting
OutputAn environmental asset
  • Liquid
  • Tradable
  • A store of value
Insights

Published thinking

Figure 2. The conditions are rules we write. The voluntary carbon credit, in graphite form, becomes the investable Article 6 unit, in diamond form, under two conditions applied together: sovereign authority as heat, which creates three of the four bonds, and investable form as pressure, which creates the fourth.
Latest insight 03

Exploiting polymorphism in carbon to manufacture its investability

Graphite and diamond are one element arranged differently. Carbon credits are polymorphic too, and the rules that set their form can make them investable.

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AeonLoop publishes its structural arguments in public rather than holding them as proprietary method. Current work includes No New Parts, a series on how environmental assets can be packaged in terms the capital markets already understand, and a working paper setting out the legal and financial architecture behind it.

A glossary of the terms and acronyms used across this work is also published here.

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