Reducing carbon is a common concern for all businesses today. Local technology startup Carbonbase focuses on helping companies reduce carbon emissions and offering services related to carbon neutrality, net zero transition and green finance. It works closely with the business community on carbon reduction initiatives to address the ever pressing issue of climate change.
Last year, HKEx launched Core Climate, a new international carbon marketplace, to support efficient and transparent trading of voluntary carbon credits and instruments. Quality products on the platform come from several internationally-certified carbon reduction projects. In less than a month, this new platform has closed more than 40 transactions that involved some 400,000 tonnes of carbon credits.
Promoting corporate carbon reduction to address acute climate crisis
Before the launch of Core Climate, a company called Carbonbase was already providing Hong Kong companies with dedicated carbon-related service, including carbon calculation, carbon emission management, carbon neutrality and transition, and green finance. Max Song, Founder of Carbonbase, is trained in mathematics and computer science. He conducted dissertation research on green finance and policies in China and the US. When he later joined the COP25 UN Climate Change Conference, he became acutely aware that time was really running out.
“When I was abroad, I noticed that countdown timers were up on the facades of some buildings, showing that in less than seven years we will use up all available carbon emission credits. The climate crisis is very real.”
Song says candidly that if carbon producers do not take responsibility for their emissions, ultimately someone else will do so. As a member of the global village, he has a duty to create a better environment for the earth and our future generations. During the design process of Core Climate, the HKEx ESG team communicated with Song on many occasions to discuss blockchain technology and the carbon certificate trading market.
Asia’s first carbon market certification agency in the making
There are currently two main types of international carbon markets, namely government regulated carbon markets and voluntary carbon markets. With the former, businesses calculate their own carbon emissions according to government standards, and purchase carbon certificates of corresponding CO2e from the government, i.e. emission permits. The latter generate indexes of negative carbon emissions which can be realized. They also provide a good channel to promote energy and emission reduction. Song explains that from a traditional point of view, forestry, energy consumption of developing countries and new energy power generation are all routes to negative carbon. At present, only four leading organizations from the US and Switzerland have set negative carbon emission standards and issue carbon certificates.
One-stop carbon management for businesses
Song hopes to make Carbonbase as the first certification agency in the Asian carbon market and the fifth in the world. “Our platform can formulate a carbon inventory process in accordance with Mainland or international requirements. Corporate users can simply fill in their information and data and then leave the rest to us. We also provide progress tracking and real-time data storage. Operation is fast and easy and reports are generated automatically. It is very convenient indeed.” He stresses that companies can use the platform for one-stop carbon management and spare themselves from time-consuming and laborious carbon inventory work and difficult data tracking. Carbonbase can help businesses to embark on a carbon neutral journey from scratch.
Song points out that Carbonbase employs blockchain technology to support corporate clients in carbon accounting and setting carbon emission targets, and in turn upgrading and transiting to green finance. He emphasizes that blockchain is a very suitable technology for carbon auditing. It is like an incorruptible book of accounts that minimizes the risk of willful modification.
Song believes Hong Kong is well-placed to play an important and unique role in the international market by integrating opportunities from China and abroad. It can help fulfill its own carbon reduction goals as well as those of the Mainland, Asia and other regions, while growing into a sustainable financial hub of the region.
