ACX Spot Exchange

AirCarbon Exchange (ACX) is the global exchange revolutionizing the Voluntary Carbon Market (VCM). ACX helps nations and organizations in Singapore, across Asia and the World accelerate their pathways to Net Zero.

Our advanced and highly efficient platform completely transforms the entire lifecycle of carbon credit ownership for all participants. Our commitment is the establishment of benchmark pricing for the voluntary carbon market with ACX being seen as the preferred platform for a market-based price.

One of the main services that ACX offers is Spot Exchange – a paradigm-shifting trading platform in the voluntary carbon market. It enables the frictionless purchasing and selling of carbon credits. It is unprecedented in various ways, including the high transparency of credit prices, instant trade settlement and clearing, clients having full control over their bids and asks, etc.

IDENTIFIED PROBLEM AND PROPOSED SOLUTION

The ACX Spot Exchange is a revolutionary trading platform in the voluntary carbon market. It enables the frictionless purchasing and selling of carbon credits — a critical asset to offset GreenHouse Gas (GHG) emissions for institutions to meet their corporate sustainability goals. Traditionally, project developers have used third parties to sell their carbon credits paying fees anywhere from 20-40% of the notional value of the transaction. In the absence of a transparent marketplace, project developers seldom know the true market value of their credits. Traditional OTC (Over-the-Counter) transactions often involve unique buyers that aren’t properly vetted or screened, and bespoke agreements for project developers to sign, making carbon trading a very inefficient and slow process.

The Spot Exchange breaks away from the opaque market of OTC transactions, keeping the clients well informed of the market prices and transaction fees. Clients are not only free to adjust their investment portfolio at any time, but also in full control over their bids and asks, allowing them to optimize their decisions based on the dynamic market prices and regulations. The Spot Exchange adopts a very user-friendly interface, provides instant trade settlement and clearing. The great efficiency under which Spot Exchange operates has translated to impressive reductions in transaction costs.

ACX Spot Exchange’s success can be clearly reflected from its constant expansion of membership, a vast array of diversified environmental projects. As of the end of 2022, clients from 31 different countries have joined the Spot Exchange, growing over 50% compared to 2021. With ACX Spot Exchange as one of its main projects, ACX has been voted as the BEST carbon exchange in Environmental Finance’s Voluntary Carbon Market Rankings in 2021 and 2022 consecutively.

The ACX Spot Exchange is highly adaptive in this ever changing digital world. It adopts the most advanced blockchain technology, specifically Distributed Ledger Technology (DLT), as its revolutionary tech backbone. Beyond creating a hybrid and decentralised platform where users can easily trade and settle with a clear and immutable record, DLT also simplifies and automates the laborious manual processes that are usually involved with OTC carbon trading. Spot Exchange thus represents the commodities market of the future where commodities and collateral can be securitised, creating an entirely new approach to securitised token trade.

DIFFERENTIAL VALUES

• Efficiency: Accelerating the value of environmental credit ownership end-to-end through the most advanced digital exchange.
• Global: Connecting all participants—project developers, nations, corporations, and industries—through a vibrant, global digital exchange for sustainability.
• Transparent: Building trust through consistent pricing and standardized digital contracts across the broadest spectrum of environmental credit categories.
• Visibility: Get noticed faster by a broader community of buyers, including corporations and sophisticated investors, through an intuitive digital exchange with advanced search and filtering capabilities.
• Diversity: Build a diverse environmental sustainability portfolio through a global collection of credit options across the broadest available categories.

SUCCESS INDICATORS

Indicates:

• over 200 members across 30 different countries
• over 16 million tonnes of carbon credits transacted through the platform (in 2021 and 2022)
• Won best carbon exchange for two consecutive years (Environmental Finance Voluntary Carbon Market Rankings)

SUSTAINABILITY IMPACT

ACX is committed to sustainability and leadership in our sector. We are the world’s first carbon negative exchange, offsetting all our emissions on a forward-looking basis through to the end of 2023 by retiring Verified Carbon Units (VCUs) from the Katingan Peatland Restoration and Conservation Project.

Furthermore, a portion of the trade fees earned from the Spot Exchange goes back to the carbon project developers that brought the carbon credits onto the platform, allowing the project developers to earn a revenue tail every time their credits are traded on the Spot Exchange – which means more funding is brought into the carbon projects.

TECHNOLOGY USED

• DLT
• ERC 20 token

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