On October 30, Business Times, a Business News Outlet, reported that the platform will allow firms such as airlines to buy and sell tokens representing carbon offset credits or Eligible Emission Units (EEUs), which approved by the International Civil Aviation Organization (ICAO).
However, the first token representing an EEU has been created by Koh Poh Koon, the Senior Minister of State at the Ministry of Trade and Industry, upon the platform’s launch at the Asia Clean Energy Summit 2019. The front end of the platform has been designed by United Kingdom-based financial firm First Derivatives.
Exchange to launch in 2020
It has been analyzed that AirCarbon has not yet received the recognized market operator license that is applied for with the Monetary Authority of Singapore. Likewise, the firm aims to fully launch the exchange in 2020.
The website of the firm describes its service in the following way:
“A Singapore regulated digital exchange focused on servicing transportation industry stakeholders’ carbon liability under ICAO’s CORSIA regime.”
The credits are represented by fungible security tokens on a blockchain and each is equivalent to one tonne of CORSIA-compliant carbon credits.
However, the firm also aims to fund the registration, consulting, and issuance and audit fees of some EEUs for free with its AirCarbon Registration Facility initiative.
In exchange for the grants, the developers of the financed carbon offset projects must commit to list and transact their credits on the upcoming tokenized credits trading platform.
Similarly, the exchange is reportedly the result of collaboration with the Sustainable Energy Association of Singapore (SEAS) which sees support by local statutory board Enterprise Singapore.
Edwin Khew, the Chairman of SEAS, as well as the Chairman and Co-founder of AirCarbon, commented:
“We aim to make the AirCarbon token the easiest and most streamlined instrument for the trading of CORSIA EEUs globally.” Edwin Khew
Khew also claimed that the platform will be the first global blockchain-based, multi-stakeholder carbon credits trading exchange that will represent carbon trades with a value of over $100 billion.
Likewise, Satvinder Singh, The Assistant Chief Executive Officer (CEO) of the Statutory Board under the Ministry of Trade and Industry Enterprise Singapore, noted that he expects the demand for EEUs to grow, given the increasing focus on sustainability.
“Enterprise Singapore stands ready to support solutions providers like AirCarbon to grow in Singapore and address the needs of corporate to offset their carbon emissions, starting from the aviation industry.” Satvinder Singh
Thus, it has been reported by Cointelegraph at the beginning of September, that Germany’s Free Democratic Party wants to pay cryptocurrency to anyone who removes carbon dioxide and other greenhouse gases from the atmosphere.