Originally published by China Carbon Neutral Development Group (1372.HK) on HKEX News. View the official English and Chinese versions on HKEX News.

World’s First Compliant Carbon Coin Issuance: China Carbon Neutral Development Group Issues Compliant Carbon Credit Tokens, Supporting National Dual-Carbon Goals and Global Carbon Market Innovation

Recently, Global Carbon Asset Management Co., Limited, a wholly owned subsidiary of China Carbon Neutral Development Group Limited (1372.HK), issued carbon credit tokens backed by VCS-certified carbon credits on DigiFT, a regulated digital asset exchange in Singapore. The issuance comprises 500 million tokens.

This innovative initiative not only marks a new stage in the Group’s development in the tokenization of real-world assets (RWA), but also represents a concrete step in advancing China’s national “dual-carbon” strategy, offering a “China solution” to address structural challenges in global carbon markets.

As climate change mitigation has become a global consensus, carbon markets—one of the core mechanisms driving sustainable development—have long faced challenges such as limited liquidity, high transaction costs, and insufficient transparency. Aligned with China’s green and low-carbon development priorities, China Carbon Neutral Development Group, through its subsidiary Global Carbon Asset Management Co., Limited, has transformed internationally recognized VCS (Verified Carbon Standard) carbon credits into blockchain-based digital tokens using a dual-chain architecture combining an alliance chain (“GreenTrust Chain”) and a public blockchain, fully addressing key bottlenecks in the efficient circulation of carbon assets while meeting Singapore’s regulatory requirements.

A New Era for Carbon Markets: Digital Technology Empowering the Green Transition

With rising global attention on climate change, carbon markets have become a critical tool for advancing sustainability. However, traditional carbon markets have long been constrained by insufficient liquidity, high transaction costs, and limited transparency.

VCS is a globally recognized quality assurance standard for voluntary carbon markets, jointly developed in 2005 by The Climate Group, the International Emissions Trading Association, and the World Economic Forum. As one of the most influential standards worldwide, VCS enables certified projects to convert verified greenhouse gas reductions and removals into tradable carbon credits.

By tokenizing overseas carbon credits using blockchain technology, Global Carbon Asset Management Co., Limited is actively addressing market inefficiencies through technological innovation, exploring new pathways for the integration of green finance and digital technology.

Technological Architecture Innovation: Dual-Chain Model Ensuring Compliance and Efficiency

This carbon credit tokenization initiative adopts a dual-chain model combining an alliance chain and a public blockchain, ensuring regulatory compliance while enhancing transaction efficiency.

In traditional carbon markets, a single carbon credit transaction may take weeks to complete. Through smart contracts that automate registration, ownership confirmation, and transfer of carbon credits—combined with 24/7 continuous trading via DigiFT’s compliant digital asset platform—transaction cycles can be reduced to minutes.

The immutability and full traceability of blockchain technology effectively prevent fraud and double counting, strengthening market trust. Each token corresponds to a third-party-verified, high-integrity carbon credit, ensuring the environmental value of the underlying asset.

Market-Based Mechanisms: Assigning Economic Value to Environmental Protection

Richard Sandor, founder of the Chicago Climate Exchange (CCX) and widely regarded as the “father of carbon trading,” recently stated that within the next five to ten years, all assets are likely to be tokenized—a trend that is rapidly accelerating. Tokenization refers to transforming real-world assets into blockchain-based, tradable digital instruments. Carbon, he noted, will become another asset with a digital life, converging with AI and tokenization to create a better world.

The core value of this carbon coin issuance lies in applying market-based mechanisms to assign economic value to environmental protection, thereby incentivizing broader participation and accelerating global emissions reduction efforts. Carbon reductions generated from forestry restoration, wetland conservation, and renewable energy projects are converted into tradable digital assets, addressing the long-standing challenge of “high input, slow returns” in ecological protection.

This enables project developers to monetize carbon outcomes directly, attracting enterprises, institutional capital, and long-term investment into ecosystem restoration. At the same time, tokenization lowers barriers to participation. Qualified investors in compliance with regulatory requirements may acquire tokens to offset emissions from daily activities and consumption, enhancing public awareness of environmental responsibility and encouraging enterprises to develop more low-carbon products—fostering society-wide participation in ecological protection.

Leveraging Singapore’s position as an international financial hub, and through DigiFT’s regulated digital asset exchange, the project enables compliant participation by qualified and institutional investors, significantly improving carbon asset liquidity and price discovery efficiency.

The Board of China Carbon Neutral Development Group stated that this compliant carbon asset token issuance aims to resolve long-standing challenges in carbon markets through structural innovation, directing capital toward climate-focused projects and aligning with China’s green digital economy strategy. Going forward, the Group will continue to expand applications of green digital asset tokenization, supporting carbon trading and green financing while cultivating sustainable growth and enhancing long-term shareholder value—contributing meaningfully to China’s dual-carbon goals and global climate governance.

This year marks the 10th anniversary of the Paris Agreement. Amid increasing complexity in global climate governance, carbon credit tokenization—serving as a bridge between traditional carbon markets and the digital economy—is reshaping global carbon market structures. As technology matures and regulatory frameworks evolve, carbon credit tokenization is expected to become a key driver of the global green transition.

About DigiFT

DigiFT is a next-generation platform for tokenized real-world assets (RWAs), regulated by the Monetary Authority of Singapore (MAS) and the Hong Kong Securities and Futures Commission (SFC). The platform offers end-to-end digital asset services—including tokenization, issuance, distribution, trading, and instant liquidity provision—purpose-built for institutional RWAs. Trusted by global financial institutions, DigiFT is the on-chain tokenization and distribution partner for leading asset managers such as Invesco, UBS Asset Management, DBS Bank, CMB International, and Wellington Management. Learn more at www.digift.io

About China Carbon Neutral Development Group

China Carbon Neutral Development Group Limited (CCNG) is a company listed on the main board of the Hong Kong Stock Exchange (HKEX: 1372), under the supervision of the China Forestry Ecological Development Promotion Association. As the first listed company in Asia to focus on carbon neutrality, the Group has three strategic business segments: green digital, renewable energy, and ecological governance. Learn more at: www.carbonneutral.com.hk

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