South Korean Kiuda to launch carbon exchange in partnership with Lankan tech startup
Daily FT: Kiuda Digital Holdings, backed by direct international investments, will be launching its state-of-the-art carbon exchange – KiudaEXin the near future.
The locally developed carbon exchange will primarily target the growing demand for carbon offset credits in South Korea, Japan, and other regions of Asia. With a multi-million dollar valuation, the Kiuda Carbon Trading eco-system is backed by direct investments and endorsements from well-known and leading South Korean securities, financial firms and chaebols (conglomerates).
KiudaEX will initiate the next generation of carbon trading by seamlessly connecting global carbon offset credit suppliers to conglomerates and businesses that are targeting to be carbon neutral through carbon offset credits. KiudaEX will be a fully automated carbon offset credit exchange with direct connectivity to well-known carbon registries. The system will solve many of the issues plaguing carbon trading, such as lack of transparency, fraud, double spending and long paperwork, through the innovative use of technologies such as block chain, process automation, and security measures.
The KiudaEX carbon exchange and its associated Climate Finance software were fully developed in Sri Lanka using local tech talent and expertise. In addition, South Korean investors have set up the company, Kiuda Digital Holdings, in Sri Lanka which will be responsible for operating the carbon credit exchange.
Kiuda Carbon Exchange CEO Richard Yoon said, “The global carbon market is going to be a multi-billion industry in a couple of years. KiudaEX is using the latest technology and we are well-positioned to be a market leader in South Korea, Japan, and globally. We will solve a lot of current issues in the carbon markets. Our exchange will be at the forefront when the carbon markets pick up with mandatory regulatory enforcement.”
“We are very excited to start our business operations in Sri Lanka. We see great potential in Sri Lanka being a future financial hub that will connect Asia to Africa and Europe. There is a lot of high-quality tech talent and expertise in Sri Lanka which will support our mission,” he said.
“Once Korean companies and financial institutions realise the advantages of Sri Lanka’s location as a carbon offset credit hub connecting Asia with the African continent that is a potentially growing future market, its education system, well-trained English-speaking workforce, various tax advantages for foreign investors, and most importantly, its well-established legal system, I believe that Korean and Japanese companies and financial institutions will view Sri Lanka as a really good investment destination. Being able to attract direct investments from Korean financial organisations is a direct testament to it. We are very happy to have learnt about these advantages of Sri Lanka before anyone else. As you can see, if you have a solution based on block chain technology, it doesn’t matter which country you do business in, but I think Sri Lanka is the best place to do business out of all the countries,” Yoon added.
Xeptagon, an innovation-driven local tech start-up primarily focusing on climate finance technologies, is the local partner of Kiuda Digital Holdings.
Xeptagon Co-Founder Dr. Sapumal Ahangama said, “Kiuda Carbon Exchange will be a game changer in the carbon trading domain. It is developed using Xeptagon’s core climate finance technology framework. We already provide climate finance and carbon trading-related software development services to global inter-governmental organisations, governments and financial organisations in the USA, Hong Kong, the African Region and the Gulf Region among others.”
OSL take:
Sri Lanka’s target of achieving sustainable development goals has resulted in many sectors in the country including the private sector engaged in building capacity to meet the growing demand. The expansion in steps taken to achieve sustainable development goals has also resulted in more focus on carbon trading initiatives. As part of the climate financing initiative, Sri Lanka stands at a strong position in carbon trading. The above mentioned carbon exchange programme would take Sri Lankan entities into the next level in carbon financing. Given this latest development, foreign businesses/investors could explore the growing opportunities in Sri Lanka’s carbon exchange programme that is now undertaken by a local entity.
| Article Code : | VBS/AT/20240328/Z_2 |