The Asia Carbon Institute (ACI), a carbon credit certification and registration organization, was established in Singapore on Aug. 29. The non-profit has formulated a voluntary carbon credit standard and will adopt strict validation processes to determine each carbon credit represents a reduction in carbon emissions. The goal is to reach 100 registered projects within a year.
According to ACI, it will focus on the use of advanced carbon reduction and carbon removal projects such as carbon capture and storage (CCUS), and seek cooperation with international and regional standard certification bodies, financial and scientific communities, and emission reduction project developers.
ACI founder John Lo said that ACI aims to register up to 100 projects within a year. He is currently in talks with policymakers in Asia, including in Singapore, to prepare a "white list" of carbon rights schemes that its companies can use to offset emissions payments.
Singapore allows large carbon emitters, primarily gas-fired generators, to use carbon credit to offset 5% of their taxable carbon emissions. The country's carbon price is currently 3.7 USD per ton and will rise to 18.5 USD next year, more than 33 USD in 2026, and between 37 USD and 59 USD in 2030.
John Lo said, “Nature-based solutions alone will not achieve net zero by 2050, we need other types of solutions. Technology-based and urban-related ones relevant to Asian region are also ACI’s focus. Asia is the world’s carbon manufacturing hub, home to most of the carbon-intensive industries, and they are not doing enough."
ACI will provide independent, open, and science-based reviews of project development and help support the registration and issuance of voluntary carbon credits. The agency’s mission is to help companies accelerate their progress towards net zero goals.
Corporate demand for this type of credit has been growing, with the market reaching $2 billion in 2021. However, at present, most carbon credit standard-setting organizations are located in Europe, the United States and the Middle East, including the Global Carbon Council in Qatar.