Technologies of the future Future technologies are critical for achieving net-zero goals, but they have not yet attained full maturity and economic scale. Examples include green hydrogen and CCUS, which require accelerated cost reductions and broader market adoption to cross the adoption chasm. Carbon markets play a pivotal role in this transition, for example: –Compliance carbon markets, supported by industrial policies such as China’s green hydrogen initiatives, signal long-term opportunities and encourage early investment, as exemplified by Baofeng Energy’s green hydrogen trial (see Case Study 8). –Voluntary carbon markets, such as China’s CCER scheme, provide economic incentives for next-generation technologies such as offshore wind and concentrated solar power. For instance, bolstered by policy support and CCER, China’s offshore wind sector has rapidly expanded, with projections indicating a compound annual growth rate (CAGR) of nearly 20% over the next five years45 (S&P Global Ratings, 2024), underscoring the market’s role in driving innovation and scale.As expectations grow for more detailed data disclosure, enterprises are demanding stricter security and privacy protections in data sharing. Ant Group has built a trusted data circulation foundation to address the issue. Ant Digital Technologies, the technology arm of the Ant Group, participates in the “TianGong Initiative” – providing a trusted data circulation framework that leverages blockchain and privacy computing to address this challenge. Established by the Carbon Footprint Industry Alliance (CFIA), a non-profit, research-driven alliance, and led by Tsinghua University, the TianGong Initiative is dedicated to building a localized and internationally recognized carbon data framework. This foundation effectively alleviates the privacy concerns when reporting data and can be applied into the MRV systems in the carbon market: the tamper-proof nature of blockchain ensures data authenticity, while privacy computing technologies such as federated learning and homomorphic encryption enable secure data usability without visibility.Ant Group also empowers corporates to utilize reliable carbon data for obtaining green certifications and accessing green financing opportunities. For example, Ant Digital Technologies has built a high-throughput, low-latency asset digitization platform based on blockchain technology, establishing a “two-chain-one-bridge” architecture comprising the “asset chain”, “trading chain” and “AntChain trusted cross-chain bridge” to facilitate efficient global capital and asset flow. The platform now covers multiple sectors including renewable energy, connecting 15 million renewable energy generation devices for immutable on-chain storage of operational data. This advancement enhances the accuracy and reliability of carbon management and the scalable nature of this technology offers potential for replication across sectors and geographies.CASE STUDY 7 Ant Group – digital empowerment in carbon market development Source: expert interview with Ant Group. As an innovative chemical enterprise, we are committed to replacing all raw materials by new energy – addressing emissions while advancing sustainable energy for humanity. Yanbao Dang, Chairman, Baofeng Energy Asia’s Carbon Markets: Strategic Imperatives for Corporations 39

Asia's Carbon Markets Strategic Imperatives for Corporations 2025