In its quest for sustainable development, the Kingdom of Bhutan has always been at the forefront of environmental conservation, aligning its socio-economic policies with the philosophy of Gross National Happiness. As part of its innovative strategies, Bhutan is venturing into the monetization of its carbon offsets, aiming to leverage these for international use under the Paris Agreement's Article 6.
In this visionary initiative, InfraBlocks Technologies (IBT) and Druk Holding & Investments (DHI) have joined forces through a strategic partnership, with the support of the Asian Development Bank (ADB). Their collaborative effort focuses on the creation of a blockchain-based platform specifically designed for the issuance, validation, and verification of carbon credits derived from Bhutan's hydropower resources.
This initiative is based on a meticulously designed Proof of Concept (POC) for a digital platform that employs blockchain technology. This platform targets the voluntary carbon market (VCM), streamlining the processes involved in managing carbon credits.
This collaboration was further bolstered by IBT's achievement in receiving the Monetary Authority of Singapore’s Financial Sector Technology and Innovation (FSTI) Innovation Acceleration (IA) grant on February 21, 2022. This prestigious grant scheme is aimed at encouraging the exploration, development, and wide dissemination of emerging technological innovations within the financial sector.
IBT's development of a POC marks a critical initial phase before the broader launch of the Carbon Credit Platform. This platform incorporates key functionalities for carbon data collection, automated greenhouse gas (GHG) calculations, and data analysis, along with a simplified process for issuing carbon credits.
Upon concluding the POC, several valuable insights were garnered, including the feasibility of digitizing the carbon credit issuance process and the capability of blockchain technology to enhance the process's auditability. The initiative has also attracted attention from international carbon credit buyers interested in Bhutan’s offerings. Furthermore, it highlighted the necessity for collaboration with local authorities and underscored how the platform could assist Bhutan in complying with Article 6.4 of the Paris Agreement.
InfraBlocks is proud to release the white paper detailing this groundbreaking project, signifying a significant step forward in climate technology innovation and showcasing the potential for such technologies to drive sustainable development on a global scale.
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