KlimaDAO Japan and Progmat Set to Launch Carbon Credit Marketplace

KlimaDAO Japan and Progmat Set to Launch Carbon Credit Marketplace

KlimaDAO Japan is set to establish a new marketplace for carbon credits, dubbed KlimaDAO Japan Market. This initiative, in collaboration with the Progmat stablecoin platform, aims to facilitate the trading of carbon credits by companies and local governments using a Progmat stablecoin. The project envisions potential expansion to international markets.

New Market for Carbon Credits

KlimaDAO, a decentralized autonomous organization committed to combating climate change, has outlined plans for the KlimaDAO Japan Market to initially trade J-Credits carbon credits. These credits were launched on the Tokyo Stock Exchange in October. The trading activities are expected to progressively scale to a global level on Carbonmark, a platform where KlimaDAO is already operational.

Despite the ambitious plans, the current J-Credit trading volumes remain “limited.” The international market for carbon credits stands at $2.9 billion, with only $288.1 million in voluntary credits. However, projections indicate that the global market could reach $172.9 billion by 2030, with Japan contributing $1.9 billion to this total.

Partnership with Progmat and JPYC

Progmat, backed by a consortium led by Japan’s largest bank, Mitsubishi UFJ Financial Group (MUFG), through its Mitsubishi UFJ Trust and Banking, plays a crucial role in this initiative. KlimaDAO will use the yen-pegged JPYC coin for settling trades on infrastructure provided by Optage, a telecommunications company in the Kansai region.

The project is advancing to its second phase, having established the initial ecosystem components by April. In this phase, JPYC will be registered as an electronic payment method, and MUFG will act as the coin trustee. This phase is expected to conclude by the end of the year, allowing services to commence. Integration with Carbonmark is also slated to begin.

Future Expansion Plans

Phase 3 of the project will focus on initiating overseas trading and supporting financial institutions and companies in developing their own marketplaces. This international expansion aligns with the broader goal of enhancing the global carbon credit market.

In September, Binance and MUFG announced a study to explore using Progmat for issuing yen-pegged and other stablecoins. This followed new regulations in June that made stablecoin issuance possible in Japan.

Backing and Technological Commitment

Billionaire Mark Cuban is among the notable backers of KlimaDAO. The protocol operates on the Polygon network, which committed to becoming carbon neutral in 2022. This technological and financial support underscores the ambitious and environmentally focused mission of KlimaDAO Japan.

By launching the KlimaDAO Japan Market and leveraging the Progmat platform, KlimaDAO aims to revolutionize the carbon credit trading landscape, promoting environmental sustainability through innovative blockchain solutions.

MiEthereum is a technology publication with a focus on spotlighting founders and builders that are improving the world of technology
Recent Articles

How to Get Your First Job in Crypto