The world's first carbon credit exchange, B4, was launched on Wednesday, (16), in São Paulo. It enables the trading of credits, which pertain to certificates issued to a company that has reduced its greenhouse gas emissions, as a financial asset through blockchain technology, a data chain that allows sharing of goods and information on a secure and immutable basis.
The idea is for the exchange to act as a facilitator for companies aiming to offset their carbon emissions and drive energy transition through an economy focused on regenerating natural resources.
"It won't be an alternative to B3. It will list tokenized assets and sustainability-focused projects," says Odair Rodrigues, founder of B4. Kaue Vinícius, a trading specialist with 19 years of experience in Asia, and Mozart Fernandes, a marketing specialist, are also partners of the company.
According to an internal analysis by the company, the expectation is to mobilize R$ 12 billion in carbon credits in the first year after the platform's launch. However, they emphasize that, based on the companies looking to be listed and those interested in purchasing, demand is ten times higher than this value. The names of the companies will only be announced after the launch.
B4 revealed that large industries from countries like the United States, Canada, Japan, France, and Saudi Arabia have shown interest in buying and trading B4's credits. In Brazil, retail companies that sell credits within their apps, such as iFood and Uber, have also expressed interest.
As a long-term goal, B4 aims to become a climate action exchange. However, in this initial phase, the platform will only trade carbon credits.
In addition to facilitating companies' access to the trading of carbon-positive digital assets, B4 also intends to drive more companies toward carbon neutrality through a controlled platform. "The technology allows for the traceable and auditable fractional sale of these credits, preventing companies from pretending to adopt sustainable practices," says André Carneiro, CEO of BBChain.
In terms of the market, Felipe Bottini, CEO and founder of Green Domus, a company part of Accenture, highlights that blockchain brings crucial elements to asset trading in terms of security, traceability, audit, and transaction transparency, allowing more companies to directly or indirectly enter the carbon market.
Rodrigues also states that the platform emerges as a response to the main problem of the carbon credit market: the duplication of credits. According to the specialist, when a carbon credit is issued or traded more than once, it results in improper use of an already debited asset.
With blockchain traceability, Rodrigues emphasizes that there will be only one record of that asset, solving the problem for companies involved in emissions compensation, which sometimes lose the trust of their investors.
"Without a proper system to transparently track and record the transactions of these assets, the problem tends to recur. With blockchain technology, B4 offers a solution that allows for the immutable and effective registration of information in a transparent distributed environment," he highlights.
Yan Martins, CEO of Hathor Labs, also emphasizes that, concerning the carbon market, technology can be crucial in bringing efficiency and agility by reducing the need for intermediaries in the market, democratizing access to these markets, including small companies and individuals.
How Will It Work?
Unlike B3, where trading asset purchases and sales through a brokerage is necessary, companies can register on the platform, fill out information similar to that requested by a bank, and create an account. Then, they can buy carbon credits after transferring the value to the account.
"It will operate similarly to a bank account or buying crypto-assets, with the difference that we will verify the companies that are purchasing," explains Rodrigues.
An industry interested in initiating its carbon credit compensation, for example, can register, purchase carbon credits, and keep them in the brokerage's wallet.
To effectively offset carbon footprint, it is enough to exchange tokens (electronic devices functioning as an electronic key) for a "certificate" through an NFT (digital assets stored in the blockchain) issued by B4 itself, which will guarantee that the offset is being performed.
"It's even a way to announce to society that the company is indeed performing the compensation, as it can include this information in its own financial statements," says Rodrigues.
"After the first purchase, they will have to answer other types of questionnaires to prove that they are avoiding carbon footprint and not just offsetting it. If I only allow offsetting, it will be a certificate that they can pollute with," explains Rodrigues. He states that practical actions must have been taken, such as installing systems to prevent polluting emissions or supporting sustainable projects.
According to him, this proof will not be a hindrance to moving the credits that the company already possesses; it is only for the purchase of new ones. "We know that there will be companies that don't want a sustainability project, only making a trade as an investor. And that's okay, but there will be a limit for the credit to be exclusive to companies that need to offset in the future."
He also states that there currently isn't a defined parameter for this limit, as it is conditioned to the tons of carbon available in the market. Rodrigues explains that any individual anywhere in the world can also buy from the moment the order book is opened, holding that asset in their wallet and experiencing market fluctuations.
Initially, B4 will not be regulated by the Brazilian Securities and Exchange Commission (CVM), as it will only trade so-called utility tokens, which provide access to a service or benefit.
However, the company states that, when trading security tokens, which are securities representing a real asset, such as stocks, for example, regulated by the CVM, they will request the necessary authorizations. The expectation is that this will happen by December if any of the companies wish to list this type of asset.
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SOURCE: https://www.estadao.com.br/economia/governanca/brasil-lanca-bolsa-credito-carbono-mundo/
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