The IFC is employing blockchain to help it accelerate the use of carbon offsets.

With the launch of IFC’s Carbon Opportunities Fund, the organisation is offering a trading platform that will issue tokenised carbon credits.

With partners Cultivo, Aspiration, and Chia Network, the Fund will seek to catalyse investments in the voluntary carbon markets and broaden access to finance for nature-based projects certified by international standards bodies.

"This new partnership will foster the standardisation of carbon credits generated in emerging markets and help mitigate climate change," said Paulo de Bolle, senior global director, financial institutions group, IFC. "Nature-based solutions can deliver up to 40 per cent of the carbon removal required to combat the climate crisis. This new framework that will use new blockchain technologies is an innovative way for capital markets to fully engage in carbon credit trading in a transparent, secure, fair, and beneficial manner."

Cultivo and Aspiration will lead the fund's strategy and execution. Cultivo's data-driven technologies will identify nature-based projects that recurrently produce high-quality carbon credits. As one of the anchor investors, Aspiration will advise on the selection of carbon credits projects and fund investments. As the fund's carbon credits are tokenised, they will be tracked by the World Bank's Climate Warehouse, which was launched on Chia's public blockchain, as the foundational architecture to build market trust by enhancing transparency and securing the integrity of global carbon trading.

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