1 min read.Updated: 09 Nov 2021, 02:04 PM ISTLivemint
The marketplace enables countries and companies to accelerate their adherence to Paris Agreement compliance through seamless and secure blockchain asset transactions at a global scale
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Sustainability marketplace for carbon credits, SDG Exchange, has announced the global launch of its platform that seeks to enable efficient and transparent global marketplaces for carbon offsets pursuant to Article 6 of the Paris Agreement amid the ongoing COP26.
The marketplace enables countries and companies to accelerate their adherence to Paris Agreement compliance through seamless and secure blockchain asset transactions at a global scale.
As per the exchange, all assets listed on the SDG Exchange platforms are compliant with Paris Agreement Article 6, fully verified by independent third-party auditing.
Carbon credits entering SDGx’s Carbon Asset Monetization (CAM) marketplace are registered on the blockchain, thus eliminating current carbon market inefficiencies, including double counting, double printing, double spending, and emerging double retirement. All transactions, custodianship, accounting and retirement are public records via an immutable distributed ledger.
Carbon credits can remain as a credit, or be transferred into a digital Internationally Transferred Mitigation Outcomes (ITMO) unit, allowing the transfer of carbon credits between countries and marketplaces globally. Pursuant to Article 6, one ITMO equals one metric tonne of carbon dioxide equivalent. Asset transactions are fulfilled via fiat, bitcoin or ethereum.
“SDGx’s platform delivers market infrastructure with transparency, trust, accountability, efficiency and global price normalization, which is exactly what countries and large private sector players need for global carbon offset markets to reach the scale and volume required to mitigate climate change. We look forward to being a trusted marketplace enabler," said Jason Cooner, chief executive officer, SDG Exchange.
Article 6 of the Paris Agreement calls for a robust global marketplace for trading carbon offsets as one of the primary tools to address climate change. Five years later, a global consensus on market standards remains elusive.
Earlier this week, Prime Minister Narendra Modi pledged at the COP26 UN climate conference in Glasgow that India will achieve net-zero emissions by 2070.
Speaking at the ‘High-Level Segment for Heads of State and Government’ during the UNFCCC’s 26th Conference of Parties (COP26) in Glasgow, PM also announced that the country would make one billion-tonnes reduction in projected emissions from now until 2030.
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