The first exchange to rely on blockchain technology to trade credits in carbon has gone live on the Isle of Man.
Carbon Plant, the Isle of Man carbon credit exchange operated by Universal Green Group, has gone live, making it the first and only Isle of Man Financial Services Authority registered NFT (Non-Fungible Token) based carbon exchange.
The exchange uses NFT digital certificates to authenticate and certify the underlying ownership of carbon contracts. It is registered under the Designated Businesses (Registration and Oversight) Act 2015 with the FSA.
The exachange uses blockchain technologies to provide a transparent, traceable platform for trading high-integrity, “hard” carbon credits, including forward selling contracts. It said that this enables greater price certainty and allows project owners to place their credits for up to a 10-year period on to the platform, providing the option for forward funding.
Carbon Plant already lists 2 million credits available for trading from 11 different projects.
Magnus Hammick, CEO, Universal Green Group, said: “Carbon Plant was created to eliminate the shadows that have caused boom and bust cycles in the voluntary carbon markets. We are committed to being a trustworthy partner for all the organisations involved to rely on. I would like to thank Finance Isle of Man for its support, together with all of our partners using the exchange. This is a beginning of a new chapter in carbon credits.”
Paul Blake, Head of Banking & Fiduciaries at Finance Isle of Man, said: “With the launch of the Isle of Man’s Sustainable Finance Roadmap at the end of 2024, we are focussed on working with industry to develop cutting edge financial solutions in this space. Carbon Plant is a great example of that and proof of our commitment to play an important role in the development of the carbon economy globally.”
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