Carbon reduction specialist Flowcarbon is joining forces with carbon project developer ALLCOT to create what will be the first blockchain-native carbon reduction project.
The intention of this recent partnership is to provide project developers, stakeholders and buyers with a range of benefits that were previously thought unfeasible.
Blockchain offers inherent transparency and traceability, which makes it so attractive for the purposes of carbon crediting.
Hence, the partnership between ALLCOT and Flowcarbon aims to leverage these qualities of blockchain technology to develop a new generation of tokenized carbon credits.
ALLCOT has been in the market of offsetting CO2 emissions and creating strategies to reduce greenhouse gas (GHG) emissions for over a decade now and has 59 projects behind its belt in 16 countries around the world.
The company’s projects are responsible for offsetting some 17 million tons of carbon dioxide annually.
On its part, Flowcarbon will provide the technological foundation for one of ALLCOT’s nature-based carbon projects, thus enabling a novel way for project data to be the focal point of listing, trading and retiring carbon credits.
Both sides are already hard at work with local stakeholders to launch the first project, the goal of which is to secure funding and preservation of natural carbon sinks in South Africa.
That aside, the project will also serve as an example of how blockchain platforms can help solve a number of issues with the present carbon market structure, particularly where price transparency is concerned.