Launch of a pioneering, fractionalised NFT-based carbon credit market, DCarbonX
DCarbonX enables trading in carbon credit NFTs for registered institutions and is the second climate product by Nash fintechX, a technology startup in Luxembourg.
The team at Nash fintechX has developed a novel carbon credit market, DCarbonX, on the blockchain, to resolve issues around greenwashing, opacity, lack of traceability, multiple intermediaries and a slow transactions cycle between entities.
Dr. Nida Khan, CEO of Nash fintechX, was ranked second globally in the category of SDG 13 for climate action, for the SDG Global Talent Award 2023, for her solution DCarbonX. The award was backed by the Municipality of Oslo and World Economic Forum. DCarbonX is listed in Abu Dhabi Global Market Digital Labs and has been recognised as an innovative, economic project in France, where it has been selected for the EuraTechnologies incubation program.
“I am hopeful that DCarbonX will be revolutionary in the climate space as it helps to validate climate efforts transparently, while ensuring that the existing way organisations function does not require a complete transformation to use DCarbonX,” said Dr. Khan, “This is the first time a fractionalised NFT market is being used to achieve the climate goals and this division of an NFT into an equal number of units will help to resolve issues organisations face in selling carbon credits to multiple entities, through certificates they own as a PDF or an image.”
DCarbonX will majorly target the VCM market, which is likely to see rapid acceleration in the run-up to the 2030 milestone of the Paris Climate Accords. An estimate from BCG shows that the present $2B market can reach between $10B to $40B by 2030. This is reflected in commitments from the private sector in the last 2 years, where 4500 companies have announced climate action plans at SBTI with 1720 of them having committed to net zero targets. The numbers will grow further as climate impact becomes a major driver of consumer choice enforcing climate goals as an essential business practice rather than a niche, marketing tool.
Nash fintechX, led by an interdisciplinary team of computer scientists, engineers, sustainability, and finance experts has already launched CNet0, a carbon offset marketplace, that utilizes blockchain to store a permanent record of issued offset certificates. Dr. Rushdi Siddiqui, advisor to Nash fintechX, opines, “Low/ middle income countries unsustainable sovereign debt and climate crisis have one important element in common, a sense of urgency,” solidifying the need for impact-driven solutions like DCarbonX and CNet0.
DCarbonX has been developed on Algorand and facilitates registered organisations to create fractionalised NFTs of their carbon credit certificates and list them for sale in the primary market on DCarbonX. Organisations that buy from the primary market can resell the carbon credits they own in the secondary market on DCarbonX. It also provides a list of holders of sold units of the fractionised carbon credit NFT, while listing all trades to ensure traceability of each carbon credit unit sold. This list of all transactions shown on DCarbonX is backed by transactions on the blockchain, verifiable through a blockchain link provided with each listed NFT.
DCarbonX carbon credit market can be used by corporates and SMEs. Subscription to the software is available, where it can be enhanced and integrated within a large corporate or government to keep an authentic record of their issued carbon credits for accurate auditing.
Updates to DCarbonX will include using OpenAI to provide analytics on the carbon credits sold, while predicting the time to attain the climate goals with the current sale.
To see the promo video of DCarbonX, use this link. To contact for partnerships, subscriptions, registrations, or a demo write to contact@nashfintechx.com.
Figure 1: Primary Market in DCarbonX
