South Korean company Kiuda has formed a joint venture with Sri Lankan Tech Startup Xeptagon for a carbon exchange to link local companies with global players making a historic change to the Sri Lankan Climate Finance segment
“South Korean investors have set up Kiuda Digital Holdings in Sri Lanka to operate the Carbon Credit Exchange to provide financial benefits to Sri Lankan companies,” said CEO of Kiuda Carbon Exchange, Richard Yoon.
“The global carbon market is going to be a multi-billion industry in a couple of years. (Expected to be valued at around USD 300 billion by 2030.)
“KiudaEX is using the latest technology and we are well-positioned to be a market leader in South Korea, Japan, and globally. Our exchange will be at the forefront when the carbon markets pick up with mandatory regulatory enforcement.
“We 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.
“I believe that Korean and Japanese companies and financial institutions will view Sri Lanka as a really good investment destination,” he said.
Yoon said that Sri Lanka made an amazing recovery after the economic crisis, adding “Sri Lanka is the best place to do business out of all the countries.”
He said that plans are underway to bring in solar panel manufactures from South Korea to invest in Sri Lanka in solar energy generating projects which is also part of this business.
Local partner of Kiuda Digital Holdings and Co-Founder of Xeptagon, Dr Sapumal Ahangama said, “Kiuda Carbon Exchange will be a game changer in the carbon trading domain.”
Global industries and factories that emit smoke will soon have to pay additional taxes when exporting to developed countries due to globe climate UN initiatives and to offset this they have to ‘buy carbon credit’ energy saving ventures in countries such as Sri Lanka.
The locally developed carbon exchange will primarily target the growing demand for carbon offset credits in South Korea, Japan, and other regions of Asia. 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).
“We already provide climate finance and carbon trading-related software development services to governments and financial organisations in the USA, Hong Kong, the African Region and the Gulf Region among others,” he said.
The KiudaEX carbon exchange and its associated Climate Finance software were fully developed in Sri Lanka.
