Singapore-based AirCarbon carbon exchange debuts new tokenized carbon credits trading platform that will allow airlines to buy and sell Eligible Emission Units (EEUs) which are approved by the International Civil Aviation Organization (ICAO).
Carbon Credits is a new exchange that will support clientele like airlines to buy or sell excess carbon credits. In addition, the market participants will have the opportunity to trade on Eligible Emission Units in form of tokens. This will come in handy for some stakeholders in maintaining the limits set by the International Civil Aviation Organization.
The premier EEU tokens have been built by UK firm, First Derivatives and were launched during the recent Clean Energy Summit held in Asia. However, AirCarbon’s exchange will not be released until 2020 owing to pending issues in regulation as per Singapore’s digital asset laws.
Meanwhile, the firm has updated its website to paint a picture of what it intends to deliver;
“A Singapore regulated digital exchange focused on servicing transportation industry stakeholders’ carbon liability under ICAO’s CORSIA regime.”
AirCarbon intends to offer incentives such as free audit services for the EEU’s not limiting other areas like issuance, registration and consulting. The EEU and carbon credit tokens will trade on blockchain platforms to offset the imbalances that have been there in the past.
The Singapore based exchange enters the carbon credit trading space as a big player. Edwin Khew, the firm’s founder, noted that they will be the first to support carbon trades whose value is over $1billion.
He added that, AirCarbon is designed to meet the modern-day convenience levels in trading EEU tokens;
“We aim to make the AirCarbon token the easiest and most streamlined instrument for the trading of CORSIA EEUs globally.”
This project is a joint venture between AirCarbon and Singapore’s Sustainable Energy Association. Authorities in Singapore have supported the move with some noting that the current emphasis on Sustainability is a driving factor for the carbon credit market.