Tokenovate collaborates with Land Carbon to design tokenised high integrity carbon credits optimising vital funding for peatland restoration and preservation

London, May 21, 2024. Tokenovate, a trading lifecycle management platform company, announces its collaboration with Land Carbon, a UK developer representing multiple peatland carbon management project owners. This project exemplifies Tokenovate’s strategic focus on the carbon credit space with respect to streamlining and optimising the end-to-end carbon credit transaction lifecycle, including asset creation, tokenisation, custody and trading. Specifically, the collaboration will seek to enhance the value of carbon credits for all stakeholders, and optimise sourcing and delivery of vitally important funding for peatland restoration and preservation projects.

Peatlands are one of the most valuable ecosystems in the world; peat soils can store more carbon than all other vegetation types combined. Conversely, drained or damaged peatlands are potentially significant sources of greenhouse gas emissions. Restoring and preserving peatland ecosystems is therefore an imperative in reducing their potential impact on atmospheric carbon dioxide levels. Peatlands cover around 10% of the UK land area (20% of Scotland’s); Peatland Carbon Units (PCUs) – specific carbon credits linked to peatland restoration and preservation projects – are vitally important sources of funding for peatland project owners.

Tokenovate and Land Carbon’s collaboration will leverage Tokenovate’s technology platform and expertise to create high-integrity, tokenised Carbon Credits for certain UK peatland carbon projects (Peatland Carbon Units or PCUs), and manage these through the end to end transaction lifecycle.

The solution design plans to establish a Minimum Viable Product (MVP) through which Tokenovate’s technology platform will help to transform real world peatland project assets into digital assets (tokenised carbon credits), and enrich them with additional quality validation data (legal entity, geospatial data and ICVCM principles). To assure the high integrity of Land Carbon’s digital carbon credits, tokens will reference project, owner, vintage and geolocation. Asset quality validation can be further augmented through registries and ratings agencies.

Through smart contracts (aligned with the ISDA Common Domain Model and its Verified Carbon Credit Transactions Definitions) digital Land Carbon tokens could be made available for trading as OTC derivatives. Tokens can be distributed via custodians, carbon networks, OTC brokers and trading venues.

Richard Baker, Tokenovate founder and CEO, said: “We aim to establish Tokenovate at the forefront of the carbon credit market with validated, high quality assets and a transparent and efficient end to end trading lifecycle management workflow for all participants. Our ultimate goal is to restore the integrity and somewhat tarnished reputation of the voluntary carbon market for the benefit of all stakeholders – project owners, venues, brokers, traders, investors and custodians.

We are very excited to be able to work with Land Carbon’s experts to create new digital carbon credit assets, and to continue to add new carbon assets into the solution. We are confident that once we demonstrate ‘proof of concept’ with the first Land Carbon tokens other carbon project owners and real-world asset projects will be keen to get on board.”

Ian Lloyd Parry, CEO, Land Carbon, said: “Restoring and preserving UK’s peatlands is an enormous, expensive and continuous long-term challenge. Our close involvement in every aspect of Tokenovate’s innovative digital carbon credit solution will ensure that the joint solution fully represents the governance and regulatory responsibilities embodied in the mandate of any project developer of peatland tasked with peatland restoration and preservation.

I am confident that the combination of our peatland restoration and preservation knowledge and carbon credit expertise, allied with and Tokenovate’s digital technology know-how and financial market access, will result in a solution that could truly transform the current carbon credit/PCU landscape.”