Core Viewpoint - China Carbon Neutral (01372) has successfully completed the technical testing of its Carbon Coin, which is pegged to 1 kilogram of carbon credit, utilizing blockchain and smart contract technology to enhance the efficiency, transparency, and automation of carbon credit trading [1][2] Group 1: Carbon Coin and Technology - Carbon Coin is a carbon credit-backed stablecoin that aims to create a unified tokenized carbon ecosystem, facilitating the seamless transfer of carbon credits between buyers and sellers [1] - The application system includes carbon accounts, carbon reduction projects, and lifecycle management systems for carbon credits, enhancing the compatibility and functionality of carbon asset trading [1] - The technology is expected to improve information and price transparency, ultimately increasing market liquidity [1] Group 2: Global Carbon Market Challenges - The global carbon market faces challenges such as reduced efficiency, lack of standardization, insufficient transparency, and market fragmentation [1] - A tokenized carbon ecosystem can address these issues, supporting the development of global carbon trading [1] Group 3: Stablecoin Impact on Cross-Border Payments - Stablecoins can significantly enhance cross-border payment efficiency, reducing costs to one-tenth of traditional systems and achieving transaction speeds in seconds [2] - It is projected that by 2024, 10% of global cross-border payments will be completed using stablecoins [2] Group 4: Strategic Implications for the Company - The successful testing of Carbon Coin and the carbon credit anchoring protocol is expected to improve the quality tracking and transparency of carbon reduction projects, benefiting carbon market service providers [2] - The company believes that participation in digital technology will lead to sustainable business growth and financial returns, laying a solid foundation for further business expansion and enhancing overall shareholder interests [2]

Core Viewpoint - The tokenization of carbon credits is expected to enhance market liquidity and provide low-cost, divisible carbon neutrality tools for enterprises, while potential risks should not be overlooked [1][3]. Group 1: Industry Developments - Northern Trust announced a collaboration with SWIFT to explore trading tokenized assets like carbon credits through commercial bank accounts in Australia [1]. - JPMorgan's blockchain division, Kinexys, is developing a new blockchain application aimed at tokenizing global carbon credits to address standardization and transparency issues in the voluntary carbon market (VCM) [1]. Group 2: Tokenization Projects - Flowcarbon (GNT): An open-source protocol based on Celo that promotes institutional capital into climate change mitigation through tokenization [2]. - Klima DAO (KLIMA): Encourages emission reductions by raising carbon asset prices, with each token backed by real-world carbon assets [2]. - Nori (NRT): A blockchain-based carbon offset platform that addresses issues of double counting and fraud in existing markets [2]. - JustCarbon (JCR, JCG): Connects project developers and buyers through a symbiotic token system, supporting high-quality carbon removal projects [2]. - Toucan Protocol (TC02, BCT): Converts carbon credits into tokens, enhancing market transparency and liquidity through carbon bridges and pools [2]. - Coorest ($CC02): Generates tokens equivalent to the carbon absorbed by trees, linking them to real-world forestry [2]. - Moss Earth (MC02): Simplifies the offset process through blockchain technology, focusing on protecting native forests, reforestation, and carbon sequestration [2]. Group 3: Significance of Tokenization - Carbon credit tokenization creates a new category of digital assets, attracting more investors and increasing funding and liquidity in the carbon market [2]. - The decentralized architecture of blockchain allows carbon credits, which are typically fragmented and hard to price, to become standardized tokens that can be traded freely and priced in real-time [2]. - On-chain data is immutable and fully auditable, preventing double counting and enhancing market credibility [2]. Group 4: Challenges and Risks - The complexity of technology introduces risks of financial fraud, as the tokenization process involves intricate blockchain technology and smart contracts [3]. - Global liquidity may exacerbate regional imbalances, as the tokenization of carbon credits could amplify disparities between developed and developing nations [3]. - The certification of underlying assets remains centralized, despite blockchain's improvements in transparency and traceability [3].