Carbon credits are permits or certificates that represent a reduction of one tonne of carbon dioxide emission. They are generated through activities that aim to reduce, remove or avoid carbon emissions such as restoring forests and investing in renewable energy. Companies can purchase these credits to offset their emissions and meet their climate goals. The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) is a multilateral process led by the International Civil Aviation Organisation (ICAO) which has developed a set of rigorous standards for the carbon crediting programmes. The Singapore Government has signed Memorandums of Understanding (MOUs) with Verra and Gold Standard to support Singapore-based companies in purchasing “high-quality international carbon credits” to offset up to 5% of their taxable emissions from 2024. The Government will publish a whitelist of acceptable credits later this year, which will include eligible host countries, carbon crediting programmes and methodologies.
The restructuring capability of blockchain and the concept of carbon credits.
Blockchain technology is being used to create a more transparent and efficient carbon credits market. The global carbon credit market...