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Blockchain technology and digital infrastructure in shaping the future of carbon markets.

Today is Sunday, October 29, 2023.


A few weeks ago, in United States, Carbon Opportunities Fund and Sumitomo Corporation of Americas announced an important step for the carbon markets, one of the first transactions of tokenized carbon credits leveraging Climate Action Data Trust (CAD Trust).


Carbon Opportunities Fund is a partner of International Finance Corporation (IFC), a member of the World Bank Group, and focused on the private sector in emerging markets, including Latin America.


CAD Trust was launched in December 2022 by International Emissions Trading Association (IETA), the World Bank and the Government of Singapore. It is also part of the World Bank’s effort through the Climate Warehouse to create an end-to-end digital carbon market infrastructure to increase transparency and quality of carbon credits.


According to CAD Trust, "the tokenised carbon credit transaction announced by the Carbon Opportunities Fund and Sumitomo Corporation of Americas (SCOA), saw SCOA purchasing the first batch of carbon credits tokenised on the Chia blockchain, through CAD Trust. Working with EcoRegistry, a carbon registry that has recently connected to CAD Trust, the Fund tokenised 10,000 tons of carbon credits on the Chia blockchain, minted as Chia Asset Tokens. Once the carbon credits are minted, the Fund is able to simply execute the transactions by sending the tokenised carbon credits to the purchasers.". Click here for an extensive and technical press release by CAD Trust.


For Mark Lyra of SCOA, “The decentralized nature of blockchain technology makes it highly resistant to tampering or fraud. This can provide additional assurance to participants in the carbon market that their transactions are secure. In addition, interoperability is potentially disruptive, and CAD Trust can facilitate the integration of different carbon markets, making it easier for participants to trade credits across borders and platforms. This can increase the liquidity and overall value of the carbon market, including the creation of new carbon asset classes.”


This transaction marks a major milestone for these markets and gives the spotlight to this type of infrastructure.


Click at the image below to read more on the significance of this transaction for all its players, including Cultivo and Chia Network.





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 CARBON CREDIT MARKETS

“Nothing in life is to be feared, it is only to be understood. Now is the time to understand more, so that we may fear less.”

“I am among those who think that science has great beauty”

Madame Marie Curie (1867 - 1934) Chemist & physicist. French, born Polish.

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