Chinese Real Estate Giant Partners With Singapore Exchange On Cross-border Digital Carbon Credits

Greenland Group, a real estate giant backed by the Chinese state, has collaborated with MetaVerse Green Exchange (MVGX), a Singapore-based digital securities exchange through its financial arm, in order to offer cross-border digital carbon credits trading services.

The partnership will enable the trading of digital carbon credits for accredited, institutional investors

on MVGX’s platform with Greenland’s Guizhou Green Finance and Emissions Exchange that caters to the Chinese domestic investors currently.

To finance green projects in China, the pair also intends to tokenize green infrastructure assets for international capital.

MVGX’s co-founder and executive chairman, Bo Bai, in a statement, said that even after China’s crackdown on cryptocurrency, the country still approves of the firms that for sustainable efforts are leveraging the metaverse technology.

As per a report released in 2021, China aims to reach a carbon neutrality goal that Chinese President Xi Jinping proposed in 2020, according to which the nation’s goal is to reach carbon emissions peak by 2030 and carbon neutrality by 2060.

At that time, a department director of the Shanghai Environment Energy Exchange (SEEE) said that Blockchain would play a significant role in the Chinese carbon cap-and-trade system for circulating, trading, and confirming carbon emission data.

China’s first nationwide carbon emissions trading market was launched by SEEE in July this year, and the first batch of carbon trading companies were mainly power generation companies with total carbon emissions of 4.5 billion tons.

According to the 2021 report, applying cap-and-trade measures was taken by among various measures taken by China to attain peak carbon dioxide emissions by 2030, hence attaining carbon neutrality goal by 2060. This is in compliance with the proposal by President Xi Jinping.

2021 was also the yea when a carbon emissions trading market was launched by SEEE across the nation, and power generation companies with total carbon emissions of 4.5 billion tons, constituted the first batch of carbon trading companies.

Earlier, Huzhou and Tianjin, two Chinese cities, announced the blockchain use to track emissions data for carbon trading.

Carbon Trading: An Overview

Carbon trade agreements enable the sale of carbon credits for reducing total emissions. Various countries and territories are already conducting carbon trading programs.

Carbon trading was the adaptation of cap and trade, which is a regulatory approach that showed positive results in reducing sulfur pollution in the 1990s.

The aim of these methods is to reduce the global warming effects; however, how effective these measures can be debated.

Enacting an agreement first proposed at the 2015 Paris Climate Agreement, rules for a global carbon market were formulated at the Glasgow COP26 climate change conference in November 2021.