The Carbon Bridge allows anyone to bring their carbon credits from legacy registries onto the Toucan Registry.
”Attention: Verra Registry currently does not support the tokenization of carbon credits and this will not be available on the Toucan UI. Verra Registry is currently identifying the safest way forward regarding carbon credit tokenization. Read our official response to the Verra announcement. official response to the Verra announcement.”
This section includes an overview on the Carbon Bridge, requirements to successfully bridge, and step-by-step instructions on how to bridge carbon from the Verra registry: initialize, retire, submit, and await approval and finally fractionalize to fungible TCO2 tokenized carbon credits.
The Carbon Bridge allows anybody to bring their carbon credits on-chain in a tokenized form. Tokens have multiple advantages over legacy credits, including full transparency, programmability, fractionalization, and composability with the emerging DeFi ecosystem. We want tokenized carbon to become a new DeFi primitive—a carbon money lego.
For now, the Carbon Bridge connects legacy carbon registries with the Toucan Registry, an on-chain registry on the Polygon network. We believe that carbon needs to be a multi-chain asset, and more public blockchains will be supported in the future.
The Toucan Carbon Bridge is a currently a one-way bridge. To prevent double-counting and value the deterministic nature of public blockchains, users of the Carbon Bridge need to retire the credits on the source registry before bringing them on-chain. This way, we can guarantee that a carbon token is unique and that burning a carbon token on-chain is equivalent to retiring a carbon credit and doesn't require a centralized entity to go retire the "real-world asset" in a carbon registry. After all, a public blockchain is a safer and more transparent way to keep track of carbon assets than any centralized ledger system 🤷