International Chamber of Commerce Signs Landmark Deal to Support a Carbon Neutral Global Aviation Industry
December 10, 2019
MADRID-- In recognition of the significant and growing environmental impact of commercial air traffic, the International Chamber of Commerce (ICC), Perlin, and AirCarbon have formed a partnership to customize AirCarbon’s blockchain based carbon trading platform to facilitate carbon credit schemes to reduce worldwide aviation emissions. Launched on the sidelines of this year’s United Nations Conference on Climate Change (COP 25) in Madrid, the partnership seeks to promote a market-based approach for reducing carbon emissions in the aviation industry globally.
Leveraging ICC’s extensive global network and Perlin’s domain expertise in distributed technology for enterprise, the partnership will seek to facilitate global adoption of the AirCarbon Exchange, which is the world’s first blockchain based distribution and trading network for CORSIA compliant carbon credits. CORSIA, International Civil Aviation Organization’s Carbon Offset and Reduction Scheme for International Aviation, was signed in Montreal in 2016 by 191 countries.
The announcement comes as CORSIA sets to start in 2021 with 80 countries representing more than 77% of international air traffic voluntarily agreeing to commit to more fuel-efficient aircraft, new direct flight paths, the use of biofuels, and other sustainability measures. As CORSIA continues to expand and shape the aviation industry, the partnership will seek to advance blockchain-backed carbon credit schemes to mitigate future liabilities for people and planet. Once implemented, the CORSIA initiative is expected to provide more than USD $40 billion in funding for climate projects and offset more than 2.6 billion tonnes of C02 emissions between 2021 and 2035.
The partnership has come at a significant moment in history as industry-led initiatives seek to address the growing climate crisis before emissions reach a critical tipping point for irreversible and catastrophic global temperature rises. Based on the substantial growth in commercial air traffic forecast by IATA (with passenger numbers doubling by 2037), the aviation industry alone could consume up to a quarter of the total global carbon budget for limiting global temperature rise to 1.5C by 2050. The partners will seek to directly address the threat posed by significant and growing emissions from aviation by facilitating the efficient and economic sourcing and trade of credible carbon offsets for the aviation industry.
ICC Secretary General John W.H. Denton AO said: “With demand for air travel continuing to rise, airlines will need short-term ways to offset emissions as they pursue longer-term goals for carbon reduction. Through this exciting collaboration with AirCarbon, we will accelerate a market-based innovation to support a more sustainable aviation industry and contribute to clearer skies in the years to come.”
On the role of blockchain technology to support greater sustainability, Chief Executive Officer of Perlin Dorjee Sun said: “Carbon and putting a value on the environment is a personal mission for me and distributed ledger technology is well suited to overcome some of the trust, double-counting, and governance challenges of carbon provenance and markets. AirCarbon and ICC will be partnering with our practical blockchain infrastructure to build the digital commodity exchange platform of the future. This new partnership will showcase how blockchain can be used in the real-world to support more inclusive, efficient and sustainable marketplaces.”
On carbon offset adoption, co-founder and Chief Operating Officer of AirCarbon William Pazos said: “As society moves towards a carbon constrained economy our technology coupled with ICC’s reach will accelerate carbon offset adoption. The key to promoting carbon offsets as a viable tool to tackle climate change is to eliminate market friction. That is our contribution at AirCarbon. Working with ICC we look to make our solution available to all responsible corporate citizens.”
About the International Chamber of Commerce
ICC is the institutional representative of more than 45 million companies in over 100 countries. ICC’s core mission is to make business work for everyone, every day, everywhere. Through a unique mix of advocacy, solutions and standard setting, we promote international trade, responsible business conduct and a global approach to regulation, in addition to providing market-leading dispute resolution services. Our members include many of the world’s leading companies, SMEs, business associations and local chambers of commerce.
AirCarbon is a Singapore-based Commodities Exchange which will be regulated by the Monetary Authority of Singapore (MAS) and is built on a blockchain architecture based on a Ethereum and ERC20 & ERC721 tokens. The Exchange, currently supported by the Sustainable Energy Association of Singapore (SEAS), 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.
AirCarbon also sponsors an investment fund (the AirCarbon Fund) which sits at the crossroad of capital, green projects and emission trading where it provides development capital to carbon sequestration projects as well as liquidity to the carbon markets. The fund is designed to reduce atmospheric carbon through CORSIA and ICAO certified and verified projects like reforestation, methane capture, and carbon emissions reduction. At the same time, the fund generates carbon credits for airlines to offset their own emissions.
Perlin is partnered with the International Chamber of Commerce and supported by the Singapore Government to power the future of enterprise using new blockchain technologies. Perlin develops innovative blockchain tools to transform international trade for more interoperable, inclusive, efficient and sustainable economies. The ICC TradeFlow platform developed by Perlin is the world’s first working application built on the Singapore Government’s TradeTrust Network, which provides the essential digital infrastructure for digitisation in all trade and commerce.
Perlin’s suite of blockchain enterprise solutions are focused on providing companies and organisations with practical digital tools to positively disrupt existing systems, processes and practices. Perlin’s mission is to empower enterprises with best-in-class technology and the essential building blocks they need to meet the challenges of future digital economies and trade.