AirCarbon and Viridios Capital made headlines this week by successfully “converting” 500,000 tonnes of CORSIA-eligible carbon credits, specifically Verified Emission Reductions (VERs), into the world’s first CORSIA-Eligible carbon Tokens (CETs) to be traded on the AirCarbon exchange. This exchange aims to be a centralised marketplace where investors can engage in carbon market trading and participate in this emerging market.
Eddie Listorti, representing Viridios Capital, expressed satisfaction with the collaboration, stating, “As active market participants, Viridios is pleased to collaborate with AirCarbon. We have great confidence in their cutting-edge blockchain technology.”
Each AirCarbon Token is backed by one tonne of CO2 equivalent, securely held in trust by their partner bank. Blockchain technology is utilised to securitise the carbon, ensuring transparency and potentially creating a liquid asset class that reduces trade friction. This innovative platform facilitates a distributed and borderless trading experience. By leveraging blockchain, this market emulates the traditional architecture of commodity markets, while simultaneously simplifying and automating tedious manual processes. Settlement and clearing times are dramatically reduced to sub-one-second timeframes.
Redshaw Advisors states, “The CET is the world’s first digital representation of CORSIA-eligible carbon credits, bringing the conventional commodities architecture to the carbon markets. We maintain incredibly low exchange commissions (USD 3/1000tCO2) to promote trading velocity. Without a doubt, this is the most efficient way for financial institutions to gain exposure to this asset class.”
We eagerly await further developments in this space and will continue reporting on any noteworthy progress.
