China Carbon Neutral Development Group Unveils Landmark Carbon Coin Tokenization Initiative

Date: 26 April 2026

Key Highlights

• Initial issuance of 500 million carbon tokens (“Carbon Coins”) through a compliant and regulated structure in Singapore.
• Tokenization of Verified Carbon Units (VCUs), underpinned by a secure legal, technical, and operational framework.
• Full compliance with Singapore’s Securities and Futures Act (SFA) and carbon tax market benchmarks.
• Potential for significant monetization of the Group’s carbon assets and innovation in the carbon credit market.
• Robust risk management, asset segregation, and compliance controls built into the business model.
• Strategic partnerships and large-scale project pipeline underpin the asset base and future scalability.

Comprehensive Project Structure and Parties Involved

The project is spearheaded by Global Carbon Asset Management Co., Limited, an indirectly wholly-owned subsidiary of China Carbon Neutral Development Group. This entity serves as the issuer, responsible for token creation, compliance, and overall project coordination. The custodian account manager, China Carbon Neutral Group Limited (also a wholly-owned subsidiary), holds the legal title to the underlying VCUs, ensuring their segregated and secure custody and executing cancellation procedures upon retirement.

The tokens are listed and traded exclusively on the DigiFT platform in Singapore, operated by DigiFT Tech (Singapore) Pte. Ltd., a licensed institution. Legal rights and obligations are established through a comprehensive “Deed Poll”, with detailed terms and an administration and custody agreement ensuring asset security and operational clarity.

Mechanics of Tokenization, Issuance, and Trading

1. Tokenization Process:
   • VCUs are pooled as underlying assets and held in a segregated account to ensure separation from other company assets and protection from any liens or claims.
   • Tokens are issued on the Ethereum blockchain, with each token representing an indivisible and exclusive beneficial right to one unit (kg) of carbon emission reduction.
   • Tokens are fully collateralized, requiring the issuer to replenish VCUs as needed to match circulating token volume.
2. Issuance and Allocation:
   • Tokens are offered to qualified entities only, as defined by exchange rules and Singaporean regulations.
   • Pricing is determined by the issuer, referencing both acquisition cost and the Singapore carbon tax market benchmark.
   • Minimum trading/subscription is set at 1 VCU (1,000 units), ensuring market integrity and transparency.
   • Ownership is confirmed solely through the exchange’s register, which is the only legally recognized record.
3. Redemption and Retirement Mechanisms:
   • Tokens do not support redemption for VCUs by investing holders but allow for permanent retirement of the underlying carbon credits, with tokens destroyed upon successful retirement.
   • In cases of mandatory redemption events (e.g., asset mismatch, issuer bankruptcy, system failure), holders receive cash settlement and tokens are destroyed without VCU cancellation.

Asset Ownership and Legal Structure

Token holders have undivided, exclusive beneficial rights to the underlying assets, but do not have direct legal ownership or the right to claim VCUs. All claims are recognized only through the official register. The custodian legally owns the VCUs on behalf of all token holders, maintaining them in a segregated account with strict operational controls.

In case of inheritance, only the legal estate agent, upon providing documentation and paying required fees, can have tokens transferred or re-registered.

Compliance and Regulatory Oversight

• Singapore law is the supreme legal framework, with full adherence to the SFA, fiscal, company, and carbon market regulations, and the Singapore Arbitration Act for dispute resolution.
• Issuer responsibilities: Ensuring asset segregation, compliance, disclosure, and timely execution of all operational steps, including VCU retirement and token destruction.
• Custodian responsibilities: Prudent management, accurate record-keeping, and timely execution of asset cancellation.
• Exchange responsibilities: Ensuring only qualified participants can transact, maintaining the technical and legal security of the platform and register, and adhering to operational standards.
• Token holders: Limited compliance obligations, such as following exchange rules and ensuring wallet security.
• Issuer, exchange, and affiliates have liability exemptions for events beyond their control, barring fraud or gross negligence.

Operational and Financial Performance

The Group’s global carbon neutrality division, launched in 2021, has rapidly become a major participant in the Asian carbon market, developing and trading approximately 3 million tons of Certified Emission Reductions (CERs) to date. Major projects include the Xinxiang Biomass Power Generation Project, the Yingkou Municipal Domestic Waste Incineration Project, and the Jiyuan Weiheng Cattle Farm Biogas Project. By 2022, the Group had completed a landmark transaction of 2 million tons of carbon credits, valued at over HK\$200 million, positioning it among the largest such transactions in Asia.

The division employs a highly qualified team with deep expertise in environmental science, engineering, and carbon market operations, ensuring robust project execution and risk management.

The Group has also launched several high-profile initiatives, such as the “Carbon Free Conference”, “Carbon Free School”, and “Carbon Free Citizen”, to enhance public engagement and future market development.

Revenue Model and Business Innovation

The carbon coin initiative leverages tokenization of VCUs for diversified revenue, capturing the spread between VCU development costs and token issuance prices, as well as service fees for customized carbon solutions to institutional clients. This marks a significant business innovation within the existing global carbon-neutral division and does not require the establishment of a new division.

All tokens for the initial issuance are backed by the company’s self-developed carbon assets, and future issuance will be sustained by ongoing internal project output and compliant acquisitions.

Potential Shareholder Impact and Price Sensitivity

• This announcement is highly significant and potentially price-sensitive. It details the Group’s successful launch of a regulated, large-scale carbon tokenization platform, which could unlock significant asset value, enhance transparency, and position the Group as a global innovator in carbon markets.
• The initiative’s compliance with Singapore regulations and robust risk controls mitigates legal and operational risks, further enhancing investor confidence.
• The direct link between the Group’s physical carbon assets and the tokenized digital market could drive new revenue streams, expand market reach, and potentially increase the company’s valuation.
• Strategic partnerships and a proven operational track record underline the credibility and scalability of this business model.

Board Composition

As of the announcement date, the Board comprises a diverse group of executive, non-executive, and independent non-executive directors, led by Chairman and Non-Executive Director Chen Yonglan.

Disclaimer: This article is a summary and analysis of official disclosures by China Carbon Neutral Development Group Limited. It is for informational purposes only and does not constitute investment advice. Investors are advised to conduct their own due diligence and consult professional advisors before making any investment decisions. The company’s business and share price may be subject to risks and uncertainties not fully detailed herein.

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