Singaporean carbon trading company CRX CarbonBank launched on Tuesday the Electric Vehicle Accelerator initiative, a scheme that generates caron credits based on greenhouse gas emissions avoided by electric vehicle charging points, allowing charging station operators and fleet owners to profit from the use of battery-powered vehicles, in a bid to speed up the energy transition.
Carbon credits are calculated by comparing the emissions produced by fossil fuel vehicles that the electric vehicles would have replaced. These credits will subsequently be auctioned, with 30% of the proceeds going to enterprises that participate in the program as early as 2025.
According to CRX CarbonBank, the carbon credit program could generate US$22.8 million to US$42.8 million in carbon revenue and decrease nine million tonnes of carbon dioxide emissions by 2040 for automobiles and taxis alone.
Gojek, a ride-hailing startup, was the first to sign up for the new plan on Tuesday, and CRX CarbonBank expects more companies will follow suit in the future.
CRX CarbonBank stated that, in collaboration with local start-up Beep Technologies, a digital platform has been established for the initiative to quantify and verify the amount of emissions saved by driving an electric vehicle. The platform is also developed to ensure that charging sessions are accurately documented and that no duplicate counting occurs.
CRX CarbonBank has filed a patent application for this method in Singapore, claiming that it leverages blockchain technology to ensure that precise charge data is used.
The company also revealed that it will use the open-source OpenAttestation standard developed by Singapore's Government Technology Agency to monitor and manage the carbon credits generated under the initiative.
CRX CarbonBank said it will offer an early bird reward of US$4.80 for every MWh of charge registered under the plan to encourage more businesses to participate in the new carbon credits system.