UK-based climate technology company ClimaFi announces the first trading platform to offer carbon credits from verified UK peatlands and woodlands. CLMT Exchange, a regenerative project built entirely on the Concordium decentralized blockchain, will allow enterprises and organizations to offset their emissions using domestic credits.
Companies are facing several challenges in the fight against climate change. This includes increasing pressure to publicly disclose their greenhouse gas emissions, as well as recent legislative proposals to pose “dissuasive” penalties on companies making unsubstantiated environmental claims.
As concerns about climate change grow, many companies are taking steps to reduce their carbon footprint. However, not all claims about reducing emissions are genuine, leading to the phenomenon known as greenwashing. One solution to this problem is the use of blockchain for the issuance of verified certificates on emission reductions from peatlands and woodlands.
Peatlands and woodlands are storing at least 550 gigatons of carbon globally, more than twice the carbon stored in all the world’s forests: peatlands cover just 3% of the Earth’s surface but account for the largest terrestrial carbon stock in the world.
In the UK, peatlands account for almost 10% of total national land, but up to 80% of them are currently in a state of degradation. As they deteriorate, they release 20 million tonnes of CO₂ into the atmosphere every single year, accounting for 4% of the UK’s total annual greenhouse gas emissions. The UK market has around three million hectares of peatland from which to produce carbon credits, thus successfully restoring them (an opportunity worth £2.8 billion a year) could play a vital role in the fight against climate change.
CLMT Exchange offers an opportunity to fuel this transformation by focusing on high-quality carbon credits with the backing of existing government-approved standards agencies such as the Peatland Carbon Code, a voluntary certification standard for UK peatland projects, and the Woodland Carbon Code, a UK quality assurance standard for woodland creation.
A Grantham Research Institute report shows that UK corporations often offset their emissions by buying foreign carbon credits due to a lack of high-quality domestic projects, but by buying carbon credits through CLMT Exchange, companies and investors will be able to secure high-integrity credits and help drive the regeneration of degraded UK peatland.
CLMT Exchange’s carbon credits help companies offset emissions while facilitating national efforts to meet Article 6 commitments under the terms of the Paris Agreement. Additionally, CLMT Exchange offers the unique opportunity to trade carbon credit pending issuance units on a secondary market, thus providing liquidity and support from investors and traders entering this rapidly growing asset class.
As the very first marketplace for trading peatland credits, CLMT Exchange will be a unique blockchain-based venue for companies to buy –and most importantly, trust– regional credits, while also increasing demand for high-quality Peatland Carbon Credits alongside national programs. Finally, the program will reinforce the importance of ClimaFi’s forthcoming “Peatland Protocol”, a new, science-based digital methodology (“dMRV”) for accurate and transparent measurement and monitoring of all projects.
As the only layer-1 blockchain with a built-in self-sovereign ID framework, Concordium blockchain plays a vital role in ensuring all the above can be done properly, safely, efficiently and for the betterment of society. The partnership is set to begin immediately, with carbon credits being made available for trading on CLMT Exchange in Q2, 2023.
Lone Fønss Schrøder, CEO, of Concordium, says: “On the CLMT Exchange, enterprises can offset and regenerate land in close proximity to where they emit by blockchain-based, trusted, verified credits. This creates a tamper-proof record of carbon credits that can be easily audited and verified, and it provides a reliable and trustworthy way to demonstrate a company’s commitment to reducing carbon emissions and combating climate change, reducing the risk of greenwashing and promoting responsible business practices.”
Tim de Rosen, ClimaFi’s CEO and Co-founder says: “We are delighted to be building CLMT Exchange on Concordium. A highly attractive feature of the Concordium blockchain is its regulatory-ready, built-in ID layer.”