According to a recent article by Bloomberg, Africa’s first verifiable emissions reduction platform, which tracks emissions reductions using a decentralized public ledger, will begin trading its first tokens this quarter.
Tamuwa, Kenya’s largest biomass briquette company, announced in May that it would launch cynk.io, a new platform using decentralized ledger blockchain technology to enable users to track emission reductions and sell those reduction credits to polluters looking to offset their own emissions.
Environmentally Focused Blockchain Solution
According to the statement, the platform will be built on Hedera Hashgraph, a reportedly energy-efficient blockchain network that uses a modified Proof-of-Stake consensus mechanism to operate. Hedera’s native cryptocurrency is denominated by the $HBAR ticker and can be found on decentralized exchanges.
The HBAR foundation, Hedera’s governing body, stated in a partnership announcement, “Tamuwa’s launch of cynk.io on Hedera, with the assistance of the HBAR Foundation, will bring high-quality VERs to the carbon markets which will drive value to both buyers and sellers of these traditionally opaque and over-intermediated environmental assets. Transparency and trust, using the carbon-negative Hedera DLT, will catalyze the price convergence of VERs to the true cost of carbon. Cynk.io will allow more funding to flow back to the project developers and local communities creating more impact in the fight against climate change.”
Emissions Reductions And Tamuwa
In a statement released by Tamuwa, “CYNK is now partnering with several new emissions reductions and sequestration projects.”
Emissions reduction credits allow businesses and projects that reduce greenhouse gas emissions that would otherwise occur due to their business or environmental practices to generate additional revenue. The credits, which polluters frequently purchase to offset their own activities, have drawn criticism because they allow polluters to continue emitting climate-warming gases.
Tamuwa generates almost all its biomass briquettes from bagasse waste generated by Kenyan sugar milling operations. If bagasse is allowed to rot, it emits methane.
The briquettes replace firewood or charcoal for various purposes, including drying tea, which is one of Kenya’s major foreign-income earners. Tea production alone consumes approximately 3 million cubic meters of firewood annually, contributing to deforestation. The Kenya Tea Development Authority is encouraging its members to use products made by Tamuwa.
CYNK was founded with funds from the HBAR Foundation’s Sustainable Impact Fund, which was announced in March, only a couple of months before the partnership announcement with Tamuwa. The Hedera Governing Council, which includes representatives from Boeing Co., Standard Bank Group, and other corporations, established the foundation.