- The Cyberdyne Tech Exchange (CTX) has released and sold the first tranche of a new asset-backed Carbon Neutrality Token.
- The responsibility of carbon offsetting does not simply rest with governments. Companies have a crucial role to play in addressing the climate crisis.
- The sale of the first tranche of 5,000 carbon credits on the exchange demonstrates there is ample demand for voluntary emission reductions.
The Cyberdyne Tech Exchange (CTX) has released and sold the first tranche of a new asset-backed Carbon Neutrality Token (CNT), says an article published on Cision website.
Carbon Neutrality Token (CNT)
The Cyberdyne Tech Exchange (CTX) has released and sold the first tranche of a new asset-backed Carbon Neutrality Token (CNT) which resolves one of the most challenging aspects of the Paris Agreement (COP21) – the ability to properly account for and track carbon credits using its proprietary protocols and blockchain technologies.
Celadon Partners Managing Partner Donald Tang remarked, “We are very excited to be the first investor to transact CNTs on CTX. Beyond this step towards sustainability in our own private equity portfolio, we hope to continue catalysing innovations with CTX to lower the barriers to sustainability for corporates and investors everywhere.”
Ambiguity in transparency & commitment
With the COP26 in Glasgow approaching, the failure to resolve the complexities of Article 6 of the Paris Agreement has led to delays in financing green projects, accelerating the climate crisis.
COP21 required nations to reduce their emissions every five years. By creating nationally determined contributions (NDCs) for cutting emissions, the clear expectation was that nations would act, by submitting new or updated national climate plans.
However, ambiguity in transparency and commitment to implementing more ambitious targets means that the world is well behind in achieving the 1.5°C temperature target set out in Paris.
The responsibility of carbon offsetting does not simply rest with governments. Companies have a crucial role to play in addressing the climate crisis – even on a voluntary basis.
The Taskforce on Scaling Carbon Markets and Deloitte has estimated that the current market size of the Voluntary Carbon Markets is around USD300 million. It is estimated that this market will grow to reach USD50 billion by 2030 according to McKinsey.
The main sticking point preventing efforts from going further relates to establishing clarity around “double counting”. This occurs when a country has overachieved relative to its carbon reduction targets and is able to sell the balance to another nation who have yet to achieve their own reduction targets.
In so doing, double counting can occur when both nations claim they have met their reduction targets by counting the surplus or additional carbon reductions themselves.
Solving the problem of double counting
CTX, which is licensed by the Monetary Authority of Singapore, is solving the problem of “double counting” through the launch of a new carbon neutrality token.
With robust proprietary distributed ledger technology supporting the token, CNTs can provide buyers and issuers with an immutable and constantly updated record of the carbon performance of their tokens.
The sale of the first tranche of 5,000 carbon credits on the exchange demonstrates there is ample demand for voluntary emission reductions (VERs) which do not interfere with NDCs – something no other solution has been able to address.
Executive Chairman and Co-Founder of Cyberdyne Tech Exchange, Dr. Bo Bai commented: “We are delighted to have helped resolve one of the key challenges facing the voluntary emission reductions (VERs) market segment. When developing the CNT our focus was to create an effective solution that provides businesses with a trustworthy, high-quality offering, that gives them the assurance they need in knowing their investments are directly impacting global carbon reduction”.
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