Singapore-based AirCarbon Pte Ltd launches world’s first digital aviation carbon exchange to fight climate change

POSTED ON: Wednesday 30 Oct 2019 BY: rhtgoc

Singapore-based AirCarbon Pte Ltd launches world’s first digital aviation carbon exchange to fight climate change 

  • Dr Koh Poh Koon, Senior Minister of State, Ministry of Trade and Industry, Singapore mints the first AirCarbon digital token at the launch of the exchange at the Asia Clean Energy Summit (ACES) 2019, part of Singapore International Energy Week (SIEW) 2019
  • This new exchange, a collaboration venture with Sustainable Energy Association of Singapore (SEAS), provides a platform for airlines to trade securitized carbon credits eligible under ICAO’s CORSIA regime
  • Company aims to make AirCarbon token the easiest and most streamlined financial instruments for the trading of CORSIA eligible emission units
  • Company targets AirCarbon Exchange to be fully operational in 2020

30 October 2019, Singapore – Singapore-based AirCarbon Pte Ltd (“AirCarbon” or “the Company”) today launched the world’s first blockchain-based carbon trading exchange, named the AirCarbon Exchange, which will serve as a central marketplace for transportation industry stakeholders to trade carbon emissions eligible under the International Civil Aviation Organization (“ICAO”)’s Carbon Offsetting and Reduction Scheme for International Aviation (“CORSIA”) regime.

Dr Koh Poh Koon, Senior Minister of State, Ministry of Trade and Industry, Singapore minted the first AirCarbon digital token at the launch of the AirCarbon Exchange at the Asia Clean Energy Summit (“ACES”) 2019, part of the Singapore International Energy Week (“SIEW”) 2019 held at the Sands Expo & Convention Centre – Marina Bay Sands (“MBS”).

Photo above: Dr Koh Poh Koon, second from right, minting the first AirCarbon digital token

The AirCarbon Exchange, a collaboration venture with Sustainable Energy Association of Singapore (“SEAS”), will provide a ready supply of CORSIA eligible credits (“EEUs”) for airlines and other corporate buyers to acquire Carbon Dioxide (“CO2”) offsets for compliance and voluntary purposes. ​These EEUs are securitised into tokens making them highly liquid, fungible and tradable.  Each AirCarbon tokens is backed on a one-to-one basis with one metric ton of carbon credits. Financial institutions and broader investors will also benefit from the ease and reduced friction common in traditional registries.

The AirCarbon Exchange, through its AirCarbon Registration Facility, will finance the registration costs of a wide portfolio of environmental-friendly CO2 mitigating projects at no charge to project developers.

Figure above: AirCarbon Exchange ecosystem

Commercial aviation accounts for over 2.5% of total global CO2 emissions. With projected growth surpassing 6% per annum according to the International Air Transport Association (“IATA”), the industry has established a market-based mechanism, CORSIA, to offset its growing carbon footprint.

AirCarbon’s Chairman and Co-Founder, Er. Edwin T. F. Khew PBM, also the Chairman of SEAS, commented, “We aim to make the AirCarbon token the easiest and most streamlined instrument for the trading of CORSIA eligible emission units (“EEUs”) globally. We are applying from the Monetary Authority of Singapore (“MAS”) the recognised market operator (“RMO”) licence and are targeting for the AirCarbon Exchange to be fully operational in 2020, bringing to Singapore the first global blockchain-enabled multi-stakeholder carbon trading hub representing over US$100 billion worth of carbon trades.”

Mr. Satvinder Singh, Assistant CEO of Enterprise Singapore, said: “International regulations and the increased focus on sustainability will lead to an increase in demand for carbon offsetting activities globally. Enterprise Singapore stands ready to support solutions providers like AirCarbon to grow in Singapore and address the needs of corporates to offset their carbon emissions, starting from the aviation industry. This leverages on Singapore’s status as an aviation and trading hub, and will further promote Singapore as a global hub for sustainability and innovation.”

Er. Khew added, “From the onset, we have initiated various collaborations, partnerships and discussions with airlines, green project developers, sustainable technology providers, multilateral institutions, impact investors and regulators.  The success of the AirCarbon Exchange requires the cooperation from all these stakeholders as well as all of civil society who have shown increased concerns on the state of climate change and environment, social and corporate governance (ESG) issues globally.”

The AirCarbon Exchange uses blockchain technology to securitize EEUs generating tradable AirCarbon Tokens denominated in metric tons of CO2.  Each Token is backed by one equivalent metric ton of CORSIA compliant EEU, allowing for added liquidity and instantaneous trading. Blockchain technology is used in the tokenization as it allows for an open, transparent and liquid asset that reduces friction, and facilitates decentralization to provide a truly distributed and borderless platform for the trading and value creation on the underlying assets.

Being blockchain-based also allows AirCarbon to create a hybrid, decentralized platform, which mirrors commodity markets which can simplify and automate laborious manual processes, allowing for ease of trade, ability to make settlements, and synchronization of document exchange and collateral management.  AirCarbon has partnered with First Derivatives to design a front-end trading solution, creating a platform that joins the best trading systems with the advantages of tokenization.

Mr. William Pazos, COO and co-founder of AirCarbon, will be speaking on 31 October 2019 at the Singapore International Energy Week (“SIEW”) at MBS.  He will deliver a keynote address on the topic ‘Enterprise digital platforms: Enabling decarbonisation of transportation’.

Mr. Pazos commented, “Apart from launching our AirCarbon exchange at the Singapore International Energy Week, we will also be participating in Aviation Carbon 2019 at London Heathrow on 4 and 5 November 2019 next week. I shall be speaking on how digital assets can accelerate the adoption of carbon offsets. I am particularly excited to work with Enterprise Singapore and Sustainable Energy Association of Singapore to bring a world class carbon trading hub to Singapore.”

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About AirCarbon Pte Ltd

AirCarbon is a Singapore-based Commodities Exchange built on a blockchain architecture based on Ethereum and ERC20 & ERC721 tokens.  The Exchange, currently supported by the Sustainable Energy Association of Singapore (SEAS) and the Digital Exchange Association (DXA), is a platform for the distribution and trading of carbon mitigating investment opportunities and carbon credits generated by those carbon mitigating projects.

The company was set up by a seasoned business group with a strong background in commodity exchange architecture, carbon trading, banking, distributed ledger technology (DLT), fund management and private equity.

For more information, please visit: https://www.aircarbon.co/

 

For media enquiries, please contact

Mr Tom Herman

Vice President, Business Development

AirCarbon Pte Ltd

Tel: +65 8168 4248

Email: tom@aircarbon.co

 

El Lee

Director

RHT Communications & Investor Relations Pte. Ltd.

Tel: +65 6381 6349

Email: el.lee@rhtgoc.com