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Singapore's AirCarbon Exchange plans futures trading for offsets

Bloomberg
Bloomberg5/10/2022 11:6 AM GMT+08  • 2 min read
Singapore's AirCarbon Exchange plans futures trading for offsets
AirCarbon is teaming up with Germany’s main bourse to launch futures trading for carbon offsets as early as this year. Photo: AirCarbon Exchange
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A Singapore carbon exchange is teaming up with Germany’s main bourse to launch futures trading for carbon offsets as early as this year to meet the growing demand from companies to hedge their risks from greenhouse gas emissions.

The futures contracts would be created by Deutsche Boerse AG using carbon credits sourced by Singapore-based AirCarbon Pte. The plan would be to trade the contracts on the European Energy Exchange, according to AirCarbon co-founder and chief executive officer Thomas McMahon. The German exchange didn’t immediately respond to a request for comment.

AirCarbon is looking to join the CME Group Inc. in offering futures trading as demand for offsets soars even as questions arise about their benefits. BloombergNEF, a clean energy research group, estimates the market for offsets could either skyrocket past US$100 billion ($139.08 billion) or crumble if there are little improvements in quality.

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