In Singapore, blockchain is moving with lightning speed, it seems. AirCarbon Pte, based in Singapore, has just launched the world’s first blockchain-based carbon trading exchange.
What this will allow corporates and airlines to do is buy and sell tokens backed by carbon credits, which are all approved by ICAO (the International Civil Aviation Organisation.).
According to press, AirCarbon Pte is currently applying for an official market operator license in front of the Monetary Authority of Singapore and aims the exchange to be fully operational some time in 2020.
In addition, in order to facilitate the entire process and help developers, AirCarbon Exchange will finance the costs of certain carbon-mitigation projects related to registration at no cost so as to allow developers generate credits fro trading.
These trade credits are actually eligible under the Reduction Scheme for International Aviation (CORSIA) regime and the ICAO Carbon Offsetting.
All carbon credits will be turned into tokens using blockchain, an action that makes them very liquid, tradable and fungible. The statement comes from AirCarbon.
Each token is fully backed by 1 tonne of CORSIA-compliant carbon credits. The carbon trades are worth more than $100bn.
The SEAS Chairman and the co-founder of AirCarbon, Edwin Khew, said the following regarding the project:
We aim to make the AirCarbon token the easiest and most streamlined instrument for the trading of CORSIA EEUs globally.