Project Name
HBCO2- Transparency and clarity in carbon credit usage
Problem Statement
The traditional carbon credit and offset system faces significant challenges, including a lack of transparency, where transactions and retirements are often not publicly visible, making it hard to verify credit usage and prevent double-counting or fraud. Fragmented registries with inconsistent formats, manual and slow verification processes, and limited market access for small buyers further complicate the system. Additionally, opaque retirement claims make it difficult for the public to verify companies’ offset assertions, undermining trust in the market.
The challenges of the traditional carbon credit and offset system impact a wide range of stakeholders. Corporates and buyers struggle with opaque pricing and unverifiable offset claims when trying to meet emission reduction goals, while project developers face slow, costly approval processes and limited access to global markets. Auditors and verifiers waste time reconciling fragmented data across disparate registries, regulators and policymakers lack real-time data for effective enforcement and reporting, and retail or small investors are excluded due to high entry barriers, complex onboarding, and illiquid markets.
Solution Overview
A blockchain-based tokenization system for carbon credits offers a transparent, tamper-proof, and globally accessible solution to the inefficiencies of the traditional carbon market. By converting verified carbon credits into digital tokens on-chain, each transaction — from issuance to retirement — becomes auditable in real time, eliminating double counting and fraud. Smart contracts automate credit lifecycle events, reducing the need for manual intermediaries and accelerating verification and trading.
This approach is innovative because it democratizes access through fractional ownership and DeFi integration, enabling broader participation and liquidity. Its uniqueness lies in combining environmental integrity with financial innovation, creating a trusted, scalable infrastructure for climate action.
Project Description
HBCO2 is a blockchain-based platform that tokenizes carbon credits, bringing unprecedented transparency, accessibility, and efficiency to carbon markets. The core functionality revolves around converting verified carbon credits from trusted registries (e.g., Verra, Gold Standard) into digital tokens on the blockchain, ensuring every credit is traceable, auditable, and tamper-proof from issuance to retirement.
Key features include:
- Tokenized carbon credits (ERC-20 / Hyperion) representing 1 ton of CO₂ each
- Smart contract-powered registry to track minting, trading, and burning of carbon tokens
- Real-time proof of retirement, enabling verifiable ESG claims
- Decentralized marketplace for credit trading and fractional ownership
- Dashboard for corporates and individuals to track offset activity and impact
The platform can leverage Ethereum (for DeFi liquidity), Hyperion (for interoperability and scalability), and IPFS or Chainlink oracles for verifiable data integration (e.g., satellite imagery or project audit results). Off-chain registries are bridged on-chain via a proof-based retirement mechanism, ensuring integrity at every step.
Users — from individuals to corporations — can offset emissions transparently, trade credits, or support verified green projects. Small contributors can access fractionalized tokens, while enterprises gain regulatory-grade audit trails for sustainability reporting.
Community Engagement Features
Users can begin by connecting their crypto wallet, completing an optional KYC process, and taking an onboarding quiz designed to educate them on carbon markets and tokenized offsets. As they explore tokenized green projects, vote on future initiatives, or retire carbon credits to claim digital proof of impact, they earn points for each action. Tasks such as staking tokens, inviting friends through referral links, and sharing retirement certificates on social media further enhance engagement and virality.
Getting Involved
HBCO2 welcomes passionate contributors to co-create a transparent, blockchain-based carbon credit ecosystem. Whether you’re a developer, climate advocate, or curious learner, there are multiple ways to get involved.
Developers can contribute to smart contracts, UI/UX, or integrations via our open-source GitHub. Early adopters can join the beta program to test features like offsetting, governance voting, and gamified dashboards — with feedback directly shaping the product. Community members can become ambassadors, spread the mission, and earn rewards by sharing content or referrals. Project owners can submit verified climate projects to be tokenized on-chain.
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How is your product differ from these: Toucan, KlimaDAO, and Flowcarbon:
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While these platforms focus immensely on providing Infrastructure for tokenizing real-world carbon credits onto the blockchain i.e. create demand-side market maker and treasury-backed protocol to drive the on-chain carbon economy, there are still some common problems not addressed by them. They do not deal with the issues of data integrity at source. These products/platforms do not solve the on-ground accuracy and real-time transparency of how carbon credits are generated or validated. They rely heavily on legacy registries and do not have a Decentralized and automated measurement/reporting/verification mechanism or a tamper-proof data submission mechanism. This is a critical area to address the concern of junk credits. We are addressing these issues by directly integrating real-time data, and AI for automatic carbon measurement and reporting, build verifiable data trails for credit issuance using decentralized identity and attestations, build a public, tamper-proof registry that supports Real-time credit issuance, could plug into existing registries or create a community-driven one.
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One more valued differentiator we are incorporating in our solution is integrating standardized native ESG reporting (e.g., GRI, SASB, TCFD). This feature offers clear and strategic business advantages, particularly for attracting enterprises, investors, and regulators. This feature is not part of these above 3 products in market. This makes our solution a dual-use tool i.e. both for carbon credit tokenization and ESG compliance, which is highly attractive to sustainability teams and CFOs.
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How does your product utilize Hyperion’s unique features in your product offering:
Hyperion has great features as explained in metis.io/hyperion documentation. Hyperion’s architecture makes it a strong candidate for climate + compliance-grade blockchain applications. Here are the features that our solution will utilize: -
Optimistic Rollups + Parallel Execution: Carbon tokenization involves many state changes (bridging, minting, retiring, verifying). Parallel execution enables non-blocking, real-time carbon issuance and credit retirement. Optimistic rollups make this cost-effective and scalable, while still benefiting from Ethereum’s Layer 1 security.
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Decentralized Sequencing: Sequencer decentralization prevents central authorities from manipulating transaction ordering—key for auditable ESG data (e.g., who retired what carbon, when). Helps build regulatory trust in ESG data derived from blockchain. Makes our product more compliant with assurance frameworks like TCFD and CSRD
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Ethereum Compatibility (EVM): Interoperability with DeFi and existing carbon token standards. Enables integration with liquidity protocols, NFT-based sustainability assets, and DAO governance. Can also easily plug into Metamask, Chainlink, etc. This results in Fast dev cycles + rich integration ecosystem for carbon/ESG innovation.
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What bounty track are you applying to:
Track1: Hyperion AI Integration — Projects using Hyperion’s built-in AI co-agent