Singapore based AirCarbon Pte Ltd (“ACX”), the world’s first fully digital carbon trading platform, securitizes CORSIA Eligible carbon credits into CETs (CORSIA Eligible Tokens) for Viridios Capital
January 25, 2021, SINGAPORE
Updated 13 September, 2021
Against the backdrop of the US rejoining the Paris Accords, AirCarbon and Viridios Capital this week securitized 500,000 tonnes of CORSIA eligible carbon credits into the world’s first CORSIA Eligible carbon Tokens (CET). With over 55 participants and counting, the exchange serves as a central marketplace for investors to trade and gain exposure to the carbon markets.
AirCarbon applies traditional commodity exchange architecture and blockchain settlement and clearance to the carbon market. With trading fees of less than ½% of notional, AirCarbon is the world’s lowest priced carbon trading platform.
Lowest trading commissions in the market at $3 per 1000tCO2
ACX is the world’s first fully for voluntary carbon offsets
Viridios Capital’s Eddie Listorti said that, “As active market participants, Viridios is pleased to collaborate with AirCarbon. We have great confidence in their cutting-edge blockchain technology. It’s also a competitive advantage that they’re located in Singapore, given the country’s leadership and drive toward becoming a carbon-trading hub in the world. We’re especially pleased to collaborate with AirCarbon through our proprietary AI technology for post-trading valuation, portfolio construction and risk management of carbon offsets.”
Secretary General of the International Chamber of Commerce, John W.H. Denton AO, commented, “As more companies and the fund managers that invest in them adopt ESG policies and targets to voluntarily promote an impactful image of their brand, the demand for offsets that include verifiable actions under the United Nations Sustainable Development Goals is also growing rapidly. However, the voluntary carbon market is mostly served by unregulated companies positioning themselves as exchanges, but which are more akin to OTC bulletin boards. The outcome is an inefficient, fragmented market, which, compounded by a lack of liquidity, fungibility and transparency, results in high transactions costs.”
The AirCarbon Exchange addresses these issues by bringing blockchain efficiencies to bear on the antiquated carbon credit OTC market. It securitizes carbon credits into traceable and fungible blockchain based contracts on the Polygon (Matic) network. Co-founder, Bill Pazos, commented that, “Traditional commodities (e.g.: corn, soybeans and crude oil) are held in escrow and tradeable receipts trade on exchanges. This allows investors to gain exposure to the underlying commodity without being pigeon holed into specific carbon projects. By bringing this architecture to the carbon markets we eliminate opacity, increase accessibility and unleash previously alienated investment dollars.”
Each AirCarbon Token is backed by one equivalent ton of CO2 and blockchain technology is used to securitize the carbon allowing for an open, transparent and liquid asset type that reduces friction, and facilitates a distributed and borderless platform. Blockchain technology allows this market to mirror old fashioned (non-digital or non-blockchain) commodity markets while at the same time simplifying and automating laborious manual processes and reducing settlement and clearing to sub one second time frames.
As a result of this blockchain platform, AirCarbon is able to offer the lowest transaction costs in the market. At $3 per 1000tCO2 AirCarbon is more in line with the market practice of other global commodities exchanges.
AirCarbon’s co-founder Mr Thomas McMahon commented, “As we saw WTI benchmark pricing form in the 80s and Brent later in the 90s, we expect to see benchmark pricing for carbon form up around contracts for nature based, premium, CORSIA and other carbon specifications. As we develop these benchmark prices, we anticipate that this market will eventually top well over $100 billion.”
With the ACX, AirCarbon envisions a global, blockchain-enabled carbon trading hub that will transform industry emission of greenhouse gas (“GHG”) from a detriment to the climate into a positive force for the development of carbon capture projects through market forces.
Mr McMahon added, “Over the last several months in the development of the AirCarbon Exchange, we have initiated collaborations, partnerships and discussions with manufacturers, energy producers, transportation and shipping companies, as well as green project leaders, technology providers and regulators. The success of the AirCarbon Exchange requires the cooperation from all these stakeholders.”
About AirCarbon Pte. Ltd.
Within highly regulated Singapore, AirCarbon Pte. Ltd. (“AirCarbon”) has built a hybrid trading platform based on a central order book architecture with blockchain for settlement and clearing. The marketplace serves industry stakeholders, carbon projects, and financial traders reducing the friction and complexity of trading carbon emissions. The Exchange provides carbon traders an efficient and transparent trading platform with minimal commission fees.
For more information or to trade carbon, please visit: https://www.aircarbon.co/
For media enquiries, please contact:
AirCarbon Pte Ltd
Tel: +65 8168 4248