HomeCarbon CreditsIncreased Demand for Carbon Offsets in Asia

Increased Demand for Carbon Offsets in Asia

Demand for carbon offsets in Asia is increasing across the global supply chain, IT, and banking industries.

Many companies want to lower their carbon footprint, especially after COP26. One way they are doing this is through the use of carbon offsets.

Carbon offsets are when a company offsets its carbon emissions by buying carbon credits. One metric ton of carbon is offset by an environmental project for every carbon credit bought.

Simply put, one carbon credit equals one metric ton of carbon.

With no global standard, offsets were often criticized. But that has now changed.

At COP26, leaders agreed to:

  • Set a global standard to create, account for, and verify carbon credits. This will help prevent double counting. It will also improve the quality of offset projects.
  • Allow certified emissions reductions (CERs) to be traded through Internationally Transferred Mitigation outcomes (ITMOs).
  • Provide countries with the choice to use or sell offsets to other countries.

With these changes, companies see the potential of the carbon offset industry, causing it to boom. But that isn’t all. Demand for Renewable Energy Certificates (RECs) is increasing as well.

RECs are just like carbon credits – except their focus is on renewable energy. One REC equals one megawatt-hour (MWh) of renewable electricity with RECs.

Singapore-based T-REC.ai is one of eight companies approved by the US to register and verify RECs.  Demand has reached 20 million RECs – accounting for half of the city-state’s power consumption.

However, demand was so high, they could only fulfill orders for 500,000 certificates.

Kang Jen Wee, founder and CEO of the exchange told Reuters that the company was working to register more renewable power suppliers.

Global companies want their suppliers across Asia to purchase RECs to offset emissions. Right now, the price ranges from $3 – $30 per REC.

Kang believes the exchange will grow by 10 million RECs next year. He expects it to reach 100 million by 2025.

Most Popular
LATEST CARBON NEWS

Gold Carbon Emissions and Net Zero

The World Gold Council (WGC) analyzes the impact of climate transition on the gold industry and its stakeholders, focusing on power emissions. The WGC and...

Generating Carbon Credits from Mining Waste

One of the world's biggest mining companies, BHP, is exploring generating carbon credits from its waste products through a process called "carbon mineralization". BHP is...

LanzaTech’s Bacteria Carbon Capture Tech

Chicago-based, LanzaTech, has been recycling carbon emissions into products such as clothes, aviation fuel, fragrances, and perfumes. Their patented CarbonSmart technology has shown how its carbon...

Carbon Streaming Enters Canadian Deal to Make 100M Carbon Credits

Carbon Streaming partnered with Will Solutions for a carbon credits deal to ramp up its Sustainable Community Projects in Quebec and Ontario, Canada. Carbon Streaming...
CARBON INVESTOR EDUCATION

Agricultural Carbon Credits and Carbon Farming Guide

There is a long list of sources of carbon emissions, and agriculture is one that may be hard for many people to believe. After all,...

Best Ways Companies Can Cut Carbon Emissions (3 Tips That Work)

In today’s hotter world, reducing carbon emissions has been the name of the game for everyone. So how does this apply to businesses? An increasing...

Carbon Pricing Explained: How Carbon Credits, Carbon Offsets and Taxes are Priced

Carbon pricing puts a price on the unseen costs of CO2 emissions. Learn how carbon is priced and how one method is poised for huge growth.

CBAM Carbon Pricing (EU’s 1st Cross-Border Carbon Policy)

The Paris Agreement created different ways to fight climate change and the EU's Carbon Border Adjustment Mechanism (CBAM) is one of them. Several efforts were...