Tokenization of Carbon Markets

Climate change requires bigger action and adaptation. Enabling transparency and efficiency, digital transactions through immutable ledgers ensure the accountability that carbon markets need

 

The challenge

The growth of the global GHG emissions markets has caused the emergence of an array of global and regional credits, markets, and trading mechanisms. This resulted in the fragmented implementation of the cap-and-trade scheme and a lack of cross-market exchange of value. Currently, cumbersome cap-and-trade schemes leave behind a vast portion of the carbon offsetting efforts of the production industry and imply high transaction fees that mostly benefit brokers and agents.

The climate challenge offers productive industries an opportunity to positively transform their production standards amid the pressuring requests from investors, regulators, and the market towards sustainable practices.

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The Solution

Offering a digital trading venue, backed on immutable information systems opens the opportunity for industry participants to leverage their efforts to obtain climate goals, and reinvest to improve their sustainable practices. Blockchain technology provides a secure, trustworthy, efficient, and convenient platform that is open and inclusive, making it ideal for developing Carbon Credit Markets. The immutable cryptographically-secured distributed ledger on the Blockchain allows for reliable issuance and tracking of carbon credits. Public blockchains are easily accessible to small and medium-sized enterprises, reducing the entry threshold for the carbon trading market. And, they deliver a great deal of transparency: the information provided by companies can be accessible to everyone.

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