Green Carbon Token | Carbon Bonds on the Blockchain

4 min readSep 13, 2022

An introduction to the Green Carbon Token | Carbon Bonds on the Blockchain

13 September 2022

In the advent of new technology shifts, collaborations, partnerships, and friendships are key ingredients for success. Today I would like to announce Business2Blockchain and BridgeDefi.com’s partnership in developing the Green Carbon Token. Our collaboration in the past found common ground in our approach to sustainability and how we include the Environmental, Social, and Governance (ESG) Market in our businesses.

The Green Carbon Token (GCT)

In its simplest format, the Green Carbon Token will be a scaled representation of the Green Bond [1] on a Blockchain or Chains. Over the next two months, we will complete our MVP product in partnership with Digishares [2].

This will enable us to Tokenize Green Bonds, which in turn will offer Blockchain efficiencies and integrity as a scaled software solution to the ESG Market.

Let’s compare apples with APPLES

1) green bonds, (climate bonds or sustainable bonds)

Green bonds are fixed-income instruments that are typically issued by the World Bank and traded on Stock Exchanges like Nasdaq. The bonds are specifically designed and linked to climate or environmental-related projects/assets and backed by the issuer.

Green Bonds can be connected to TAX incentives to make them more attractive to investors and governments. Prices and compliance are calculated with criteria that have evolved over the last two decades. Criteria [3].

Funding is largely used in the public sector for renewable energy and efficiency, clean transportation, agriculture, and real estate developments. The larger private sector operates in the Voluntary Carbon Market, (VCM). Green and other sustainable labeled bonds reached $417.8 Billion in the first half of 2022.

2) GREEN CARBON TOKEN and Blockchain Technology

The green bond is already in a digital state. The Green Carbon Token platform will Tokenize the Green Bond to add Blockchain efficiencies and integrity.

We plan to launch a marketplace where accountable emissions are stored for purchase and on the other side introduce white-listed investors and corporates to the offset market to prove their diligence and showcase their achievements.

We believe all businesses will have to ensure their ESG status/profile, and just as you manage your profile, manage your efforts with sustainability. In short, vetted projects that contribute to the sustainable supply of CO2 are represented by an Exchange or Market place.

The platform invites companies and investors on board to view the projects. Due diligence (KYC/AML) is standard compliance procedure from our side before we can whitelist them.

There are two vehicles to enter the “Green market with:

1. Green Bonds

2. Carbon Credits, (more on Credits next time)

Carbon Bonds are investments in projects and have become very favourable in investment portfolios e become very favourable in investment portfolios. Our partnership with Digishares fulfils the criteria we need from a regulated and investment aspect to ensure our MVP, a Tokenized Green Bond, Green Carbon Token.

By placing (GCT) in the market we will ensure Blockchain diligence and will scale the performance between the supply and demand in the market with instant Blockchain Ledger, verifiable data. Our focus from there will lie with the companies and how they perform with their goals. They will be able to showcase, (“Brag), with their sustainable green profiles.

Blockchain Tech

There is a high demand for VERIFIABLE DATA across industries and further Tech automation that reduces back-office admin. This mitigates the risk of intermediaries manipulating data and adding unnecessary costs.

Key areas to develop Green Carbon Token and Blockchain technologies are

· Climate Data generation

· Carbon offset Marketplaces

· Offset Verification Tech

· Sustainability Rating & Analysis

Further ESG mandates and pressure for compliance on the large Voluntary Carbon Market (VCM), brings tremendous opportunities from the private sector with Companies, NPOs, Governments, Sports, Travel & Individuals that will need access to buy & sell carbon offset credits.

The ESG Market has a wide-open window and further key areas for development are

· Tracking emissions

· NFT Net Zero projects

· Coding on-chain Standards

· Smart Escrow

Blockchain Ledgers can only help Regulators and Compliance

These Blockchain Developments under the Green Carbon Token will reduce Greenwashing, (Companies that avoid cutting their emissions, while still being able to claim they are, or will be, Carbon Neutral).

If offsetting is done on Blockchain Ledgers through Tokenization in a regulated framework, funding will be directly accessible to vetted projects with unparalleled verification value. The same ledger can ensure Corporates and Companies benchmarked timeframes to reach their targets.

Blockchain Ledgers are transparent and prove credentials and compliance in real time. This will enable faster response and disclosure of environmental risks.

Blockchain Ledgers offer

· Larger market participation with increased liquidity by up to 30%

· Elimination of intermediaries & back-office admin

· Improved transparency through direct Governance

· Secondary market, cross border, 24/7, global trade

We believe in developing a sustainable product that will enable sustainable stability in the ESG Market.

From Green Carbon Token and BridgeDeFi.com

#esgfinance #esgmarket #greencarbontoken

Green Bond [1]

https://www.investopedia.com/terms/g/green-bond.asp

Digishares [2]

https://digishares.io/