We purchased 2,000 tons of carbon credits on a forward basis.
Carbon Credit Profile:
Project: CORSIA-compliant solar project in the Kubuqi Desert
Type of carbon credit: China Certified Emission Reduction (CCER)
Nature of carbon credit: Avoidance offset
We have been involved in the development of carbon markets in Asia for some time including working on an initiative to help create a regional price benchmark for voluntary emission reductions. In collaboration with our partners, we determined we would further support the development of a regulated carbon market and efforts to promote high quality carbon credits consistent with international best practices, by participating in a trade as a buyer. This experience allowed us learn more about the pain points of the voluntary carbon market in China and generally and design a contract to help address some of the uncertainties and associated risks. The transaction was widely reported as the first offshore trade of China-originated, high-integrity carbon credits or CCERs.
The carbon credits we purchased will serve to support our own decarbonization strategy. These carbon credits are CORSIA-compliant, and so, are consistent with the highest international standards for the time being. We will use some of these carbon credits to offset our carbon footprint for our first year of business, which will help us reach carbon neutrality.
We have used our carbon credits for a few side initiatives:
2 tons were gifted by us to the Hong Kong ESG Reporting Awards in support of their work and efforts in promoting ESG reporting best practices in Hong Kong, helping it achieve a carbon neutral event in HERA 2021.
We allocated 500 tons of the CCERs for a digitalization pilot to experiment with developing product solutions for current pain points of the voluntary carbon market and test drive process flows for next generation carbon credits.