NFTs are the future Carbon offsetting solution and much more

NFTs are the future Carbon offsetting solution and much more


We hear so much about NFTs and that they are just jpegs… Are they though? Here’s a prime example of a Non-Fungible Token that has real world value: the Rainforest Tokens. We think it’s the future of Carbon Certificates.

NFT offset Carbon

You probably agree with the statement that human pollution is terrible for our planet. People and businesses alike feel the need to take action and do something against it. Businesses are especially under pressure to reduce their negative environmental impact. Until now, the most well known but awfully intransparent “solution” for companies to offset their emissions was Carbon Credits/Certificates. The system, to say the least, is flawed. But NFTs are here to save the day. 

What are Carbon Certificates/Credits?


“A carbon credit is a generic term for any tradable certificate or permit representing the right to emit one tonne of carbon dioxide or the equivalent amount of a different greenhouse gas”



Basically, if a company can not further reduce their emissions, and they know they will have carbon emissions during their production, they can buy Carbon Credits to balance their negative impact. On the seller side, we find entities who engage in environmentally friendly activities to create carbon credits for sale. Buyers and sellers of Carbon Credits have their own marketplace, similar to the stock market. And the price of carbon credits is rising sharply, while they are often not even accessible for individuals.


What’s an NFT?

Non-Fungible Token. It’s a digital unit that exists on the blockchain that can not be copied. Sure, if there’s a jpeg attached to this unit, that can be copied, but that’s not the point. If you own an NFT, it’s like owning a file on the Internet. And you can transparently show and prove your ownership. Imagine it like purchasing a sword in a game like World of Warcraft. But that sword will be yours all over the internet, not just within the game, and you can sell it to anyone, anytime, without the game developers’ permission. What an innovation, right? Gaming will be a huge market for NFTs, but there are countless other ways to benefit from this technology. Carbon offsetting is one of them. 


Supply & Demand – Rainforest & Carbon Market:

  • Rainforests are getting smaller every day. International demand to invest in preserving it is growing. Official data shows that deforestation in Brazil’s Amazon rainforest has hit its highest level in over 15 years in 2021. A report found that deforestation increased by 22% in just a year (see 1. ). The issue is growing, but so does people’s awareness. 

  • The demand by companies to offset their carbon emissions has never been higher. The sheer pressure people put on governments and businesses to take action can not be ignored.

  • The carbon price (to offset carbon emissions) is getting expensive, and it hit a record high last month (See 2. ). The carbon market is becoming a lucrative business – too bad it has huge problems, like double accounting.

  • The demand by individuals to pursue a carbon neutral lifestyle is rising. 

NFT as Carbon Credit

NFTs use Blockchain technology. Blockchain technology is basically an inmutable, transparent bookkeeping system (let’s not go into the nitty-gritty details now though). Carbon Certificates have a huge problem with transparency and double accounting. With the help of Blockchain technology it’s easy to verify which company owns which certificate, solving the current system’s transparency issues. 

The real world asset (for example a parcel of rainforest) could easily be attached to the token on the Blockchain, and then to the company. As the token already belongs to them, no other entity could use the same real world asset as a carbon certificate.. 

That’s approximately the thought behind Rainforest Tokens. There’s a piece of rainforest land, and it has a digital certificate, an NFT, that can not be copied. When someone purchases this NFT, it acts like a certificate that that specific parcel was saved on behalf of the NFT’s owner. A certificate that shows how much Oxygen that parcel produces, and how much CO2 it captures. Also, an NFT can only have 1 owner, so the double accounting issue is solved too. Once the NFT is resold, the accounting renews.


All in all, me and my teammates at FUND THE PLANET think the future is bright for NFTs. I have never worked on anything with so much conviction, and motivation. I hope I could get you excited about this topic as well, and that you now get the concept! 

If you have any questions or remarks, I’d be very interested in hearing them. Until next time!With Rainforest Tokens, individuals and businesses protect a real piece of endangered Amazon Rainforest directly and can demonstrate their positive impact with confidence. 

Kuan-Ning Tseng is the Chief Sustainability Officer and Co-Founder of FUND THE PLANET, a blockchain-based organization dedicated to the conservation of the world’s rainforests. Kuan-Ning has been at the forefront of using blockchain to develop a more transparent and sustainable solution for rainforest preservation, which aims to inspire people to do more for the environment. Visit our website and documentation to learn more about FUND THE PLANET and its revolutionary approach to conservation. You can also use the Rainforest Explorer to track FUND THE PLANET’s conservation efforts of each parcel in real-time.