In the fight against climate change, the technology of tokenization of carbon credit is poised to create a more transparent, efficient, and accessible carbon credit market, according to a new report by PwC Middle East.
The report highlights carbon credit tokenisation through the initiatives of Fils, a leading digital infrastructure provider in the Middle East, as a key player in this emerging space. Since its launch before COP28, Fils has provided innovative digital tools that empower businesses across various sectors to integrate sustainable practices into their daily operations.
“Tokenization of carbon credits” offers a novel approach to climate action. Essentially, it involves converting traditional carbon credits, which represent a verified reduction in greenhouse gas emissions, into digital tokens. These tokens can be easily traded on a blockchain platform, streamlining transactions and boosting market accessibility.
Morgan Stanley estimated this market to reach a value of $100 billion by 2030.
The report showcases how Fils’ technology is already making a difference. Major financial institutions like Magnati in the UAE and Geidea in KSA are leveraging Fils’ platform to process payments that automatically offset carbon emissions associated with their business activities. This simplifies eco-friendly transactions and enhances transparency for businesses and their clients.
Fils’ technology goes beyond facilitating transactions. It also employs advanced analytics to calculate carbon footprints associated with corporate spending, providing businesses with a clear picture of their environmental impact. This data-driven approach allows companies to make informed decisions and implement targeted sustainability measures.
“We are proud to be recognized in this report for our role in helping financial institutions adopt climate solutions,” said Nameer Khan, CEO of Fils. This recognition underscores the company’s commitment to developing innovative tools that empower businesses to contribute to a greener future.
Serena Sebastiani of PwC Middle East pointed out the importance of collaboration in tackling climate change. “Strategic partnerships that combine technology application with education are crucial,” she noted. Fils’ success exemplifies this approach, as their partnerships with leading financial institutions like Magnati, Geidea, and Mashreq Bank facilitate a global movement towards a more sustainable future.
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Source: ESG Times
