CAD Trust, J.P. Morgan Kinexys Push Blockchain Carbon Tracking in $1.5 Billion Market
Updated
Updated · Blockchain Council · May 24
CAD Trust, J.P. Morgan Kinexys Push Blockchain Carbon Tracking in $1.5 Billion Market
1 articles · Updated · Blockchain Council · May 24
Summary
CAD Trust is using a public blockchain meta-registry, while J.P. Morgan’s Kinexys is piloting registry-layer tokenization to improve traceability and settlement in carbon markets.
The push targets persistent weaknesses in emissions trading—fragmented registries, slow MRV processes, double counting and greenwashing—that have undermined trust in both voluntary and compliance systems.
The voluntary carbon market was worth about $1 billion to $1.5 billion in 2023, and compliance markets are far larger, with carbon pricing and trading systems generating tens of billions of dollars annually.
Standards groups and researchers say blockchain helps only when tied to high-quality MRV, authoritative registries and strong governance, because immutable records cannot fix bad underlying data.
The broader direction is toward registry-linked tokenization and cross-registry reconciliation, especially as Article 6 rules raise the need for auditable, cross-border tracking of carbon claims.
As carbon markets split by quality, can blockchain truly verify project integrity or just digitize existing flaws?
With Article 6 now live, will differing national regulations stall the dream of a unified global carbon ledger?
Blockchain and Tokenization: The Path to Integrity and Scale in the Global Carbon Credit Market
Overview
The global carbon credit market is a key tool in the move toward climate neutrality, allowing governments, companies, and individuals to offset emissions by purchasing certificates tied to real emission reductions. This market operates under major frameworks like the EU Emissions Trading System, which is the world’s largest and most liquid carbon pricing mechanism, covering over 10,000 installations across 30 countries. At the same time, the voluntary carbon market is growing quickly, fueled by a surge in corporate climate pledges and commitments to net-zero targets by 2050. Together, these trends highlight the market’s vital role in global climate action.