This week, Metaverse Green Exchange (MVGX), a blockchain-based carbon credit exchange, announced a collaboration with the Indonesian Stock Exchange (IDX). At this stage, IDX is “exploring the possibility” of working with MVGX.

Indonesia has committed to reducing greenhouse gas emissions by 43% by 2030 and plans to launch its own trading scheme by 2025.

“Today, carbon markets continue to face challenges related to lack of transparency, standardization and liquidity. We are delighted to support IDX as they work to reach this critical milestone as part of Indonesia’s climate policy and as they raise the bar for green finance. in the region,” said Bo Bai, CEO and co-founder of MVGX.

MVGX provides a comprehensive carbon-as-a-service solution that includes the tokenization of carbon credits with its carbon neutrality token (CNT) on the Ethereum blockchain. It is regulated by the Monetary Authority of Singapore as a stock exchange and has a capital market license.

“Indonesia has so many potential nature-based solutions. With a fully operational carbon trading infrastructure, companies and governments will be able to trade carbon credits while identifying high-quality climate projects,” said Irvan Susandy, Director of Trading and Membership at IDX.

“This partnership with MVGX will enhance IDX’s capability and capacity to design carbon trading as Indonesia’s efforts to build a climate-resilient future.”

Additionally, MVGX announced plans to partner with Chainlink for cross-chain interoperability.

In addition to the current agreements, in April MVGX announced a partnership with OCBC Bank, one of the largest in Singapore, with plans to jointly develop new green financing solutions.

It’s early days for MVGX. So far, there is a small amount of activity with your CNT token with visible transactions on Ethereum. About 20 out of 10,000 CNT tokens appear to have been burned, the blockchain way of withdrawing tokenized carbon credits that have been used.

The tokenization of carbon credits has raised quite a bit of controversy. One of the leading registries, Verra, has paused the tokenization of its registry credits while it consults on a suitable methodology. Additionally, questions have been raised about the low quality of some tokenized carbon credits.

Meanwhile, the International Emissions Trading Association (IETA) has collaborated with the World Bank and the Government of Singapore to form the Climate Action Data Trust (CAD Trust) to create a multi-tier, blockchain-based registry of carbon credits. important carbon records. This will help prevent projects from generating credits on more than one record.