About the report
The rapid escalation of climate change concerns has fueled a global rush towards sustainable solutions, notably within the voluntary carbon market. This market facilitates businesses and individuals to offset their carbon footprint by investing in carbon reduction or sequestration projects. With an impressive growth trajectory, the voluntary carbon market, valued at $2 billion in 2021, is projected to surpass $50 billion annually by 2030. However, this burgeoning market is not without its challenges, including inefficiencies in tracking, limited accessibility for smaller entities, and liquidity constraints. This case study delves into EVIDENT's revolutionary approach to carbon credit tokenization, aiming to tackle these hurdles head-on and reshape the voluntary carbon market landscape.
Key highlights
- Asset Overview: At the core of this study is a solar energy project in China, generating China Certified Emission Reductions (CCERs). These credits, adhering to the CORSIA standard, are essential for companies looking to meet sustainability goals through emission compensation.
- Market Challenges: The voluntary carbon market faces obstacles such as transparency, market fragmentation, complex issuance and verification processes, limited liquidity, and quality concerns, impacting its efficiency and credibility.
- Solutions: EVIDENT introduces a solution that includes the tokenization of carbon credits on a forward basis, the establishment of a secondary market for credit trading, and the issuance of Retirement Certificate Tokens (RCTs) to prove carbon offsetting. These strategies use blockchain technology to ensure transparency, security, and efficiency.
- Outcomes: EVIDENT's solutions have led to improved market transparency and traceability, standardized transactions, enhanced market participation and liquidity, automated compliance and settlement processes, and immutable verification and reporting mechanisms, addressing market challenges and setting new standards.
- Conclusion: EVIDENT's blockchain solutions represent a significant advancement for the carbon credit market, promising to overcome challenges and contribute to a sustainable future. The tokenization of CCERs showcases the potential of this technology to revolutionize the market, emphasizing EVIDENT's role in promoting sustainability.
This white paper highlights EVIDENT's role in advancing the voluntary carbon market through innovative blockchain solutions, positioning it as a key player in the global sustainability effort.
