KlimaDAO Japan is set to launch a new carbon credits marketplace called KlimaDAO Japan Market. The organization has partnered with the Progmat stablecoin platform to explore carbon credit trading using a Progmat stablecoin. There are plans for the project to eventually expand globally.
KlimaDAO, a decentralized autonomous organization focused on combating climate change, envisions the KlimaDAO Japan Market trading J-Credits carbon credits. J-Credits were launched in October on the Tokyo Stock Exchange. The goal is to gradually expand trading on Carbonmark, where KlimaDAO is already active.
Currently, J-Credit trading volumes remain limited. The global market for carbon credits is worth $2.9 billion, with voluntary credits accounting for only $288.1 million. However, it is predicted that the world market could reach $172.9 billion by 2030, with Japan contributing $1.9 billion.
Progmat was established with support from a consortium of banks led by Mitsubishi UFJ Financial Group (MUFG), Japan’s largest bank. KlimaDAO will settle trades using the yen-pegged JPYC coin and trade on Optage’s infrastructure. Optage is a telecommunications company operating in the Kansai region.
The partners are entering the second phase of their study, having completed the initial ecosystem setup by April. JPYC will now be registered as an electronic payment method, and Mitsubishi UFJ is preparing to serve as the coin trustee. Phase 2 is expected to be finished by the end of the year, enabling service commencement. Integration with Carbonmark will also begin.
In Phase 3, overseas trading will begin, and support will be provided to financial institutions and companies to develop their own marketplaces.
In September, Binance and MUFG announced a study to use Progmat for issuing yen-pegged and other stablecoins. The issuance of stablecoins in Japan became possible due to regulations implemented in June.
KlimaDAO is backed by billionaire Mark Cuban. The permissionless protocol operates on the Polygon network, which has committed to becoming carbon neutral in 2022.
Blockchain technology could play a crucial role in saving the planet, serving as the killer app for addressing climate change.