The United Nations Framework Convention on Climate Change (UNFCCC) recently joined forces with the AirCarbon Exchange (ACX) to create the first-of-its-kind fully digital carbon exchange. The innovative aims to promote carbon offsetting through UNFCCC Certified Emission Reductions (CERs) and will allow over 30 countries to purchase and "retire" CERs.
According to the brand, "ACX will be the second exchange in the world, and the first in Asia, to list CERs held in the UNFCCC Clean Development Mechanism (CDM) registry." By joining forces with the UNFCCC, ACX will work to raise awareness of CERs and facilitate their use in global carbon markets.
With a vision to bring transparency, efficiency, and liquidity to carbon markets, ACX was launched in 2019 and was ranked as the Best Carbon Exchange by Environmental Finance's prestigious Voluntary Carbon Market Rankings in 2021.
Fully Digital Carbon Exchanges
UNFCCC and AirCarbon Exchange are Promoting Carbon Offsetting
Trend Themes
1. Digital Carbon Offsetting - The UNFCCC's collaboration with ACX is a prime example of how digital platforms can promote and facilitate carbon offsetting.
2. Transparency and Efficiency in Carbon Markets - ACX's vision of bringing transparency, efficiency, and liquidity to carbon markets presents innovative opportunities for businesses to adapt and thrive in a sustainable future.
3. Expansion of Digital Carbon Markets - The establishment of ACX as the second exchange in the world and first in Asia for CERs held in the UNFCCC CDM registry shows the growing potential for the expansion of digital carbon markets.
Industry Implications
1. Carbon Trading and Brokering - The digitalization of carbon trading and brokering presents an opportunity for companies to streamline their sustainability efforts while contributing to global climate targets.
2. Environmental Finance - The emergence of digital carbon exchanges like ACX presents an opportunity for the environmental finance industry to innovate and make a tangible impact on global climate action.
3. Tech-driven Sustainability - The use of digital platforms to facilitate carbon offsetting and emissions reduction is emblematic of the opportunities for the tech industry to drive sustainable change.