A collaboration between AirCarbon Pte Ltd and the Sustainable Energy Association of Singapore (SEAS) has led to the unveiling of AirCarbon Exchange. The latter is the first securitized carbon emissions market place targeting stakeholders in the airline sector. Apart from working with SEAS, AirCarbon had the backing of Enterprise Singapore.
Through the exchange, transporters in the airline sector, together with corporate buyers can now buy carbon dioxide (CO2) offsets. The latter will be in ready supply and at their disposal. During the launch, the first carbon offset credits were minted during the Asia Clean Energy Summit 2019. Among the attendees was Koh Poh Koon Senior Minister of State at the Ministry of Trade and Industry.
To launch the tokens, AirCarbon Pte Ltd had to seek the approval of the International Civil Aviation Organization (ICAO). Besides that, AirCarbon had to hold discussions with various stakeholders before launching the exchange.
“At AirCarbon, we are after making AirCarbon token the simplest and most streamlined trading asset available for trading EEUs globally. Through our efforts, our exchange will be the first globally accepted blockchain-enabled carbon trading hub accounting for more than US$100 billion worth of carbon trades.” Edwin Khew AirCarbon’s chair and co-founder. Mr. Khew is also the chair of SEAS, the firm working with AirCarbon.
Carbon Credits Also Known As EEUs (Eligible Emission Units) Will Be Baked To CORSIA
Although blockchain technology will enable AirCarbon to make the EEUs highly liquid, tradable, and fungible, the tokens will be backed to CORSIA a compliant carbon credit. CORSIA is a market-oriented firm whose primary goal is to offset CO2 emissions emitted by the aviation industry. Per the press release, one tradable token will be equivalent to a tonne of CORSIA. Besides working with stakeholders and getting the approval of ICAO, AirCarbon is working on getting its RMO license.
Apart from working on the development of its exchange, AirCarbon also supports other projects through its AirCarbon Registration Facility. The latter facility is responsible for issuing grants to support other C02-mitigation projects. The donations go to finance the registration, issuance, consultation, and auditing fees of the other projects. However, in return, AirCarbon expects the developers to commit themselves and list their credits on its exchange.