Singapore-based startup tokenises carbon credits from a Chinese wind-energy project

The Singapore-based startup Cyberdyne Tech Exchange (CTX) has completed the first tranche of tokens backed by carbon credits from a wind-energy project in Zhangjiakou, Hebei Province.

Singapore compliance exchange CTX announced the sale of 5,000 carbon credit Token CNT to Hong Kong-based private equity firm Celadon Partners. The quota was generated by a wind energy project in Zhangjiakou, China. ​​​​https://t.co/9RhwoVMp9V

— Wu Blockchain (@WuBlockchain) September 27, 2021

The Department of Foreign Economic Cooperation of the Ministry of Environmental Protection of China has reviewed and registered the project in the national carbon emissions registry. Similar standards have been developed in the European Union.

For tokenisation, the Chinese partner vouched for the carbon credits with an independent agency, and then reduced the supply of such instruments on the national market by that amount. The project is linked to electricity generation for the February 2022 Beijing Olympics.

CTX’s activity has been approved by the Monetary Authority of Singapore. By launching a marketplace for carbon credits for accredited and institutional investors, the firm aims to facilitate funding for green projects worldwide. The project is supported by Asia Green Fund.

The sold carbon-neutral tokens are equivalent to quotas for total emissions of 5,000 metric tons CO2. CTX plans to issue the next tranche for a similar amount by the end of September.

The tokens contain “emission-tracking data, their offset, capture, storage and reuse”.

Thanks to blockchain, the instrument provides buyers and issuers with immutable, continually updated data on alignment with ESG goals. Unique identifiers help resolve potential “double-spending” issues.

Earlier, Norilsk Nickel’s palladium fund placed on the Vienna Stock Exchange tokens backed by nickel with a neutral carbon balance.

Follow ForkLog on Twitter!