Celo, Flowcarbon Partner to Build First Public Blockchain-Based Carbon-Market Ecosystem

Announcements, Blockchain, Innovation, News | May 6, 2022 By:

Climate technology company Flowcarbon has teamed with the Celo Foundation to launch a carbon-market ecosystem that will enable carbon credits to be traded on the Celo network in the form of Flowcarbon’s Goddess Nature Token (GNT). The partnership includes the purchase of at least $10 million of GNT, currently in presale, by the Celo Foundation and the Climate Collective.

Flowcarbon’s mission is to make carbon markets accessible and transparent, enabling billions of dollars to be invested directly into projects that combat climate change. Founded by a team of experienced entrepreneurs with collective expertise in carbon, sustainability, and blockchain technology, and backed by some of the biggest investors in the world, Flowcarbon is committed to driving real impact for people, biodiversity, and the planet.

Celo is a carbon-negative, layer-1 protocol with a rich ecosystem of global partners building innovative Web3 applications within the DeFi, ReFi, and NFT sectors in support of the Celo community’s mission to create a more inclusive global financial system. Accessible to anyone with a mobile phone, the Celo ecosystem consists of a decentralized, proof-of-stake blockchain technology stack (the Celo Protocol), the CELO token, and several native stablecoins (cUSD, cEUR, and cREAL) that make it easy for anyone to use crypto like cash — every day.

Under the partnership, the two companies will work together to catalyze the budding regenerative finance (ReFi) ecosystem on Celo, using Flowcarbon’s infrastructure to drive demand for environmental assets by creating the essential foundation for an on-chain carbon market. The commitment includes support for liquidity on platforms like Uniswap v3, for which governance recently passed to deploy on Celo. The addition of GNT on Celo will help set a standard price for carbon credits on the blockchain and lay the foundation for an on-chain market where other functions can be built-out with additional ecosystem partners.

The global carbon offset market provides essential financing for developers whose projects reduce and remove atmospheric carbon. Through the carbon market ecosystem being created by Flowcarbon and Celo, project developers will have immediate access to an active marketplace to sell their credits. Project developers will first tokenize the carbon credits issued to their projects and then sell the tokens at the GNT market price, thereby bringing existing live credits on chain. Flowcarbon’s protocol is based on a “two-way bridge,” allowing any GNT holder to redeem their token for an underlying credit.

“From the start, we designed Celo to bring natural assets on-chain in a meaningful way to enable a regenerative financial system,” said Celo co-founder Rene Reinsberg. “Flowcarbon’s solution is creating market maturity by helping to solve the real-world challenges faced by the off-line carbon markets. And with their experience in traditional carbon markets, Flowcarbon is uniquely positioned to do this work. By bridging the two, the established carbon sector is brought on-chain in a transparent and responsible way.”