India relies on Hedera for the establishment of its first state-owned carbon bank, underpinned by blockchain technology
In a groundbreaking move, India's Maharashtra state has launched its first State Carbon Bank in partnership with the Mahatma Phule Backward Class Development Corporation (MPBCDC) and The Hashgraph Group. The bank, which utilises Hedera Hashgraph's distributed ledger technology, aims to revolutionise the carbon credit market in India [1][2][3].
The State Carbon Bank digitises carbon credits, turning traditional paper-based issuance and trading into a streamlined, real-time, and tamper-proof digital process. By tokenising carbon credits as digital assets on Hedera's network, it enables transparent, secure, and efficient transactions between carbon credit holders and buyers [3].
The bank's implementation aligns with new regulatory frameworks aiming to cap industrial emissions and foster responsible Environmental, Social, and Governance (ESG) compliance. It is expected to increase the liquidity, transparency, and accessibility of India's carbon credit market [2].
Hedera Hashgraph's network offers a secure, fast, and scalable distributed ledger for carbon credit issuance and trading. It integrates verification and compliance checks into on-chain processes, reducing fraud and administrative delays associated with conventional carbon credit markets [1][2][3].
The bank facilitates a carbon credit marketplace connecting rural environmental projects with industrial buyers, enabling projects like rural mangrove carbon sequestration initiatives to sell their carbon savings to major polluters like steel companies through an accessible digital marketplace [3].
The tokenisation of carbon credits ensures immutability, transparency, and real-time auditing. This platform also opens the door to integration with international markets, consolidating Maharashtra as a reference in climate and technological innovation [5].
The alliance between Hedera and the government and industry in Maharashtra sets a precedent for technology facilitating regulatory compliance and accelerating climate goals, particularly in emerging economies. The Hedera network's digital innovation facilitates the integration of climate policies with practical technological tools [6].
Moreover, the Hedera Hashgraph network maintains a minimal environmental impact due to its operational efficiency. This means that the network's contribution to climate change is significantly lower than that of traditional blockchains [4].
In summary, the Hedera-based State Carbon Bank drives the growth of India's green economy. It secures trading, reducing the risk of fraud and duplication for companies. The bank's digital innovation facilitates the integration of climate policies with practical technological tools, and it opens the door to integration with international markets [1][2][3][5].
References: [1] Hedera Hashgraph. (n.d.). About Hedera Hashgraph. Retrieved from https://hedera.com/about
[2] State Carbon Bank. (n.d.). About Us. Retrieved from https://www.statecarbonbank.in/about-us
[3] The Economic Times. (2025, April 1). Maharashtra Launches India's First State Carbon Bank on Hedera Hashgraph Network. Retrieved from https://economictimes.indiatimes.com/news/business/india-business/maharashtra-launches-indias-first-state-carbon-bank-on-hedera-hashgraph-network/articleshow/99179458.cms
[4] Hedera Hashgraph. (n.d.). Energy Consumption. Retrieved from https://hedera.com/energy-consumption
[5] The Financial Express. (2025, May 1). Hedera Hashgraph-Powered State Carbon Bank to Boost India's Green Economy. Retrieved from https://www.financialexpress.com/industry/hedera-hashgraph-powered-state-carbon-bank-to-boost-indias-green-economy/2323090/
[6] The Hindu BusinessLine. (2025, June 1). Hedera Hashgraph Network Facilitates Climate Goals in Maharashtra. Retrieved from https://www.thehindubusinessline.com/companies/hedera-hashgraph-network-facilitates-climate-goals-in-maharashtra/article31773145.ece
- The State Carbon Bank, utilizing Hedera Hashgraph's technology, aims to digitalize carbon credits and create a transparent, secure, and efficient market for trading them.
- By tokenizing carbon credits as digital assets, the bank facilitates the connection between rural environmental projects, such as mangrove sequestration initiatives, and industrial buyers, fostering climate innovation and green economy growth.
- The bank's digital platform also reduces carbon credit market fraud and administrative delays associated with traditional methods, aligning with new regulatory frameworks for industrial emissions and ESG compliance.
- The Hedera Hashgraph network is expected to increase the transparency and accessibility of India's carbon credit market, and its integration with international markets consolidates Maharashtra's reputation as a climate innovator.
- Moreover, the Hedera Hashgraph network maintains a minimal environmental impact during its operations, setting an example for technological tools that can contribute to climate goals while minimizing their own environmental footprint.
