IMPT closed a deal to buy carbon credits worth $54 Million from Polygon blockchain-based marketplace Thallo.
IMPT is a global carbon-offsetting ecosystem that connects brands to individuals and businesses looking to cut their carbon footprint. Thallo uses blockchain technology to make it easier for buyers and sellers of carbon credits to find each other.
The deal will see IMPT buying carbon credits from Thallo with an estimated value of $54 Million over 10 years.
IMPT Sourcing Tokenized Carbon Credits from Thallo
Using the current market carbon prices, the carbon credit deal will help offset around 12 million tonnes of carbon over ten years. It’s equal to the annual CO2 footprint of about 2.6 million people.
This partnership is a major milestone in developing the IMPT platform that will allow community members to convert their native tokens into carbon credits.
Remarking on the agreement, IMPT CEO Denis Creighton said:
“We are thrilled to partner with Thallo to source high-quality tokenized carbon credits for our protocol…Putting these credits into the hands of our community is the next step in realising our vision of building a global network of people who want to play their part in combating climate change by taking small actions in their everyday lives.”
The agreement involves an initial 3-year purchase of €3.6 million worth of carbon credits. Then there’s a Memorandum of Understanding for a long-term partnership over 10 years.
IMPT will purchase carbon credits from Thallo’s diverse portfolio of project developers. These include both carbon removal and avoidance projects from 5 different continents. Each project helps reduce carbon emissions to fight climate change.
In a report last year, Thallo combined carbon project developer insights to identify challenges to scaling the voluntary carbon market. These include, in particular, verification delays that can bring 2.6 billion in losses to developers.
Bridging Unretired Credits Using Blockchain
The live, unretired credits will be bridged onto the Polygon blockchain via Thallo’s 2-way bridge from existing carbon registries. These include the Colombian BioCarbon Registry.
Thallo’s Two-Way Carbon Bridge allows companies and individuals to move carbon credits on and off the blockchain. This is crucial to avoid double accounting and preserve the integrity of the carbon credit.
- This blockchain technology enables easy buying, selling, and retiring credits while ensuring transparency and traceability.
Information about the project, vintage, serial numbers, etc. are stored on-chain in the Thallo Bridge. This enables anyone to access this data at any time due to the public and distributed nature of the blockchain. And that’s even if the registry system is not available.
The end goal of the bridge is to be a public, transparent ledger of all events related to the issuance and retirement of tokenized carbon credits.
Thallo’s Two-Way Carbon Bridge Process
The deal with IMPT is the first use of Thallo’s ‘Bridging-as-a-Service’ product offer. It allows Web3 companies to integrate carbon credits directly into their own infrastructure. It also helps Web2 companies by allowing e-commerce customers to offset the emissions of their purchases.
Thallo Co-Founder and CEO, Ryan Gledhill said:
“Thallo’s ground-breaking infrastructure enables voluntary carbon market innovators to access an ever-increasing number of registries with a simple integration model…The market is one of the world’s most impactful tools to combat climate change.”
He added that IMPT’s innovative model will continue to scale alongside Thallo as they attract more suppliers in 2023 and beyond.