Carbon credits are units of greenhouse gas emissions reductions that are generated by projects aimed at reducing or removing carbon dioxide from the atmosphere. Carbon credits can be bought and sold in a market-based system that is designed to incentivize companies and countries to reduce their carbon emissions. In this system, the credits are used as a form of currency that represents the right to emit a certain amount of carbon dioxide into the atmosphere.

The use of carbon credits has been a contentious issue in the fight against climate change, with some arguing that the system has not been effective in reducing emissions and has even led to some companies profiting from carbon emissions. However, with the increasing demand for clean energy and the push for sustainable practices, carbon credits have gained attention in recent years.

The tokenization of carbon credits is a new development in the carbon credit market. This process involves the use of blockchain technology to create digital tokens that represent ownership of carbon credits. The advantage of tokenization is that it makes the carbon credits more accessible and easier to trade, thereby increasing liquidity in the market. The tokens can be traded on blockchain-based platforms, and the transaction records are stored in a decentralized ledger that is transparent and secure.

The company mentioned in the transcript, Deep Market, is a publicly traded company that is involved in the tokenization of carbon credits. They aim to bridge the gap between the traditional carbon offset world and the blockchain by using blockchain technology to store carbon credit data and provide liquidity to the market. The company’s founders, Steve Vinery and Ranjit Sweetheart Center, have backgrounds in the technology sector and believe that the marriage between the carbon offset world and the blockchain will create a community that will benefit significantly from the growth of the carbon credit asset class.

In conclusion, carbon credits and the tokenization of carbon credits are important developments in the fight against climate change. While the effectiveness of the carbon credit system has been a topic of debate, the tokenization of carbon credits provides an opportunity to increase liquidity in the market and make the credits more accessible to companies and countries that want to reduce their carbon emissions. As the demand for sustainable practices increases, the carbon credit market is likely to grow, making the tokenization of carbon credits an area to watch in the coming years.

Transcript

0:01and we are live here uh in New York City

0:05it’s climate week uh everybody is uh

0:08really just

0:10buzzing uh about this city there’s

0:12multiple events all over the place we’re

0:15here at the

0:17climate week blockchain Summit it was

0:20too sexy for me to pass up I had to come

0:22and uh and see what was going on I met

0:25here Steve

0:26vinery and Ranjit sweetheart Center and

0:31there was deep market and they have a

0:32publicly traded company uh that is

0:35involved in tokenizing of carbon credits

0:38so I wanted to go live and bring it to

0:40you because this is the type of stuff

0:41that’s going on

0:42one of the things that has come up as I

0:45come around here is people say oh well

0:47you can buy those carving credits but

0:48you can’t sell them and this and that

0:50and there’s we were just at another uh

0:52more formal I would say event their OTC

0:55and the carbon credits and everything

0:56like that so without further Ado we’re

0:58gonna go to some Excellence over here so

1:01uh tell me a little bit about uh the

1:03company and what brought you here to The

1:06Climate week blockchain summary not sure

1:08um we’re a public Trader company in

1:11Toronto and in the US and it’s a sexy

1:14conference like you said so we had to be

1:16here I’m a public markets sort of

1:19professional and I was attracted to the

1:22sector because it felt like early crypto

1:24early cannabis and were eight months

1:27into our listing and I’m learning

1:28something every day

1:30our asset is technology we’re Bridging

1:32the Gap from the old world to the New

1:34World Imagine The New York Stock

1:37Exchange everything was on paper then it

1:39got converted to digital we’re doing

1:41that with carbon credits so we have a

1:43technology platform the market is huge

1:46there’s tens of millions of carbon

1:49credits being generated monthly and

1:51they’re all looking for ways to monetize

1:52trade digitize

1:54and Steve maybe you give them a bit more

1:57color sure you know that’s a good start

1:59I mean we’re really as Ranch at a

2:03technology company and we’re

2:04strategically positioned in what is a

2:08marriage between the carbon offset world

2:11and the blockchain and there’s as we

2:13spoke about earlier there’s a growing

2:15consensus that this is an asset class

2:17that will benefit significantly by using

2:22the blockchain as a as a data store and

2:25as a place to uh to bring liquidity and

2:29all sorts of players to the to the

2:31marketplace whether they be buyers of

2:33sellers or project generators and and uh

2:36and it’s it’s almost it feels like a

2:37community that’s that’s being built uh

2:40through this marriage

2:41pretty interesting so tell me a little

2:43bit about your background how did you uh

2:45get into this

2:48uh my background I’m from Vancouver

2:50Steve’s from Vancouver I spent 25 years

2:53working in Asia and it’s in Singapore

2:54and it’s quite high-tech so I got

2:57immersed into the technology sector

2:58through some Venture Capital deals in

3:00Singapore

3:01and public markets has been my

3:03background that being structuring

3:05financings acting as a consultant or a

3:08c-level executive enlisted companies had

3:10some success some takeovers

3:12a big learning curve I missed out on

3:15cannabis I missed out on crypto and when

3:18a group of developers came to me a year

3:21ago who were very successful in building

3:24nft projects and they had one of the top

3:2660 ones in the world they could listen

3:28this nft these gorillas these Apes

3:31that’s going there’s actually a real

3:33commercial use for them and we believe

3:35it’s carbon credits

3:37a week later of discussing everything

3:39with them I said I said I’m in I put

3:42together about six million dollars uh

3:46organized the listing in Toronto

3:49got some nice shareholders some

3:51institutional backing and we started

3:53trading seven months ago so I was

3:55attracted to it you know same reason why

3:57I’m here it was sexy and I don’t want to

3:59miss out again

4:01well it is it is something very

4:02interesting I know last night I was just

4:05you know back on and on with questions I

4:07really wanted to understand

4:09what was going on I

4:12I got it ready so quite interesting so

4:15and so anybody can go and buy

4:18tokenized parking credits right now

4:21that’s a very good question the equal

4:23system’s not there yet you can go buy

4:25them right now it’s not as accessible as

4:28going to a Marketplace go to an exchange

4:30and choose them there aren’t they they

4:32do trade on open C but there’s a number

4:34of large players a lot of them are

4:37actually here in New York who are

4:38looking to put together more advanced

4:40platforms more advanced trading

4:42exchanges but they do trade you can go

4:44to our website buy and sell them and

4:47mint them

4:48but we’re not quite there yet as far as

4:51a really free open market I think maybe

4:53six more months

4:55interest yes I I I’m sure and so I know

4:58you’re a little bit more of maybe the

5:00technical uh part of it how exactly are

5:03you uh

5:05tokenizing

5:07the carbon credit give me a walkthrough

5:10of what that process is so you’re asking

5:11the accounting Finance guy the technical

5:13questions no that’s no I mean so I won’t

5:16go super deep on this because I might

5:18butcher it yeah but uh the technology so

5:21we’re we’re using uh the ERC 1155 a

5:26basis uh for these particular tokens and

5:30it’s relevant because that is a token

5:33that allows for a data Rich uh sort of

5:37Encyclopedia of of characteristics of

5:40the carbon credits which I think is a

5:43critical part of this because if you’re

5:44a company or an individual that cares

5:47about offsetting if you have a net zero

5:49commitment you’re going to care about

5:51where the credit came from you may have

5:53a particular predisposition for a

5:55particular country your Homeland a type

5:57of project

5:59whether there’s Community benefits and

6:02so using this type of token allows you

6:04to understand where it came from it’s

6:06like a chain of custody City and so I

6:09think it’s it’s a critical piece

6:12particularly for this asset class to

6:14have that capability and so we’ve that’s

6:17why we chose the year at the 1155 token

6:19and that moves uh throughout the life of

6:22the nft

6:24also the technology has embedded a

6:27capability for the end the owner of the

6:30nft at any time to retire the underlying

6:33carbon credit which is a critical piece

6:35of this entire process sure there’s

6:37going to be people who want to have the

6:38nft to buy it for Price appreciation and

6:41to sell at a later date and to speculate

6:43that’s all great but the functionality

6:46and the retirement which is really why

6:48we’re in this business why carbon

6:50offsets came to be is so these offsets

6:53get retired

6:56tired and and they’re useful in terms of

6:59everybody’s Net Zero commitment well

7:00that’s pretty interesting so I’ve heard

7:02this word retired quite a Time

7:04sure my audience

7:07what does that mean

7:10yeah good question uh and it seems so

7:13simple but uh I guess for the for the

7:16corporation that’s offsetting its

7:18footprint

7:20if they can’t do this by changing the

7:22way they do business they buy offsets

7:24and they want to offset the offset as a

7:27way of offsetting their carbon footprint

7:29and increments of tons of CO2 it gets

7:33used it gets retired now retirement is

7:35important for a lot of different reasons

7:37it’s important from everything from the

7:39project generator who wants to see their

7:41credits retired so they can issue new

7:44ones and pass new credits through the

7:46registry it’s important in terms of of

7:48the bookkeeping and this is where the

7:50industry is as has has had a had a bit

7:53of a some of the players have maybe had

7:54a bit of a black eye is this issue of

7:57are the credits retired or are they not

7:59uh and so it’s really important and

8:02again that’s why this particular USC ERC

8:041155 token is relevant because

8:07we can track and we can understand if it

8:10has been retired

8:12how it’s done correctly and that the

8:13registry is notified that that credit

8:15has been has been retired doesn’t exist

8:17anymore nobody can nobody can buy it and

8:19sell it or represent that it still

8:21exists

8:22what we also do with our technology is

8:24that the owner of the nft gets a

8:27particular specific nft to signify that

8:30it has been retired and the active nft

8:33is is canceled and so the process is

8:36really end-to-end secure to make sure

8:38that they’re everybody understands

8:40what’s required and what’s not hopefully

8:42that made a whole bunch yeah no it does

8:45it doesn’t be tired burned

8:51as well all right so then

8:53so in the

8:55somebody gets the carbon credit

8:59they have like uh they oh they’re

9:01getting fines basically right they’re

9:03getting fined for their carbon and they

9:05got they buy the carbon credit they

9:08apply that to the the fine so they don’t

9:10pay the fine is that right yes

9:13it’s so there’s two two broad markets in

9:17the carbon space there’s the compliance

9:19Market which is where you can be fined

9:20you find those in Europe and in

9:22California and they have carbon credits

9:24we’re in the voluntary World which are

9:27carbon offsets so your analogy is just

9:30it’s it’s close but but there’s we’re

9:31not dealing with companies that are

9:33necessarily going to get fined this is

9:36um a social sort of um you know the

9:39corporations that that

9:41um have mandates around sustainability

9:43and and other uh self-imposed goals

9:48around the environment Apple sign core

9:50all the big companies are playing in the

9:52voluntary Market it’s actually in dollar

9:54sector yeah oh I know that that’s that’s

9:57why we’re here yeah that’s why I’m here

9:59as well yes most definitely

10:09yep

10:10uh plans for the end of the year in the

10:12beginning of 2023. our plans for the

10:14company are to Showcase that we are the

10:17tech we are the peace from there’s

10:20Cradle to grave there’s the carbon

10:22credit there’s the retirement and

10:23trading in the middle we are the tech

10:26platform which is the go-to for

10:29tokenization digitization and nft we’ve

10:32just launched the platform let’s call it

10:3460 days ago

10:36so we’ve now gone commercial a lot of

10:39the large scale but in the next 60 days

10:42we’re looking to form the Partnerships

10:43with the people who have those tens of

10:46millions of credits who want to do deals

10:49with us to be their exclusive Mentor

10:51exclusive digitizer and we achieve that

10:55over the next quarter I Believe by that

10:58time the tradable market the exchange

11:01we’ll call it will be up and running and

11:03we’re not part of that we are definitely

11:04the tech platform Catalyst for the

11:06company are really how many credits have

11:09you onboarded invented that’s pretty

11:11much it we get paid permits seven and a

11:13half percent we on board you know a

11:15million dollars worth of credits we get

11:17paid seven and a half percent and on and

11:19on so our Target over the next six

11:21months is the mint 10 million credits

11:23amazing well very cool I think it’s

11:27great if you have some uh last thoughts

11:29feel free otherwise uh please share the

11:31website social media

11:33well

11:36www.deepmarket.com it’s

11:38marketkit.com we’re on Twitter uh we’re

11:41on LinkedIn but the best place for

11:43information would be our Twitter account

11:45or our website

11:48so much for coming on it’s great to be

11:49here thanks for having us yes we’re sure

11:51see you soon