Opinion by: Nicholas Krapels, head of research and development at Mantra đ§
Well, butter my biscuit! By 2035, the real-world asset (RWA) market is fixinâ to hit a cool $60 trillion, and them green RWAs are sittinâ pretty like a frog in a pond, ready to be the belle of the ball in this global onchain hoedown. đ€
Now, donât go thinkinâ green assets are the big dogs yet-theyâre still smaller than a gnat on a elephant, makinâ up less than 1% of climate assets and RWAs. But hold onto your hats, folks, âcause with green assets fixinâ to skyrocket and tokenization faster than a jackrabbit on a date, the green RWA marketâs about to be the next big thing. đ
Platforms Poppinâ Up Like Weeds to Tokenize Billions in Green Credits đż
The EUâs got its regulatory boots on, and carbon tradingâs fixinâ to blow up bigger than a firecracker on the Fourth of July. Sure, thereâs bottlenecks and verification hoops to jump through-âcause tokenizationâs still wet behind the ears-but programmable green assets onchain got folks dreaminâ of ambitious projects, especially in them emerging markets. đ
Take Dimitra, for instance. Them folks are usinâ blockchain and AI to help smallholder farmers grow more than just crops-theyâre growinâ resilience. Focused on cacao in Brazilâs Amazon and carbon credits in Mexico, theyâre offerinâ returns sweeter than a pecan pie, âbout 10% to 30% every year. đ«đ°
Then thereâs Liquidstar, not messinâ around with agriculture, but still aimân to save the world one battery charge at a time. Their waypoint stations are like a Swiss Army knife for powerless communities-chargân batteries, generatân water, and even hostân micro-data centers. Itâs a leapfrog into a wireless, sustainable paradise. đ
In the next decade, digital innovation-thanks to regulators finally gettinâ their act together-will give us our best shot at marryinâ sustainability and profitability, two things that usually get along like cats and dogs. đ±đ¶
Green assets used to be about as popular as a skunk at a picnic for profit-driven investors, but now thereâs âgreen shootsâ sprouting in this nascent green RWA movement. Blockchainâs efficiencies are turninâ those undesirable climate assets into profit machines. đž
Green RWA: A Trillion-Dollar Pie Waitinâ to Be Sliced
Carbon credits, born from the Kyoto Protocol back in the â90s, are like gold stars for reducinâ greenhouse gases. Each creditâs worth a ton of COâ reduced, avoided, or removed. The EUâs cap-and-trade system got the ball rollinâ, but now the Voluntary Carbon Market (VCM) is the new kid on the block, sittinâ at $1.7 billion and growinâ faster than a watermelon in July. đĄïž
The carbon dioxide removal (CDR) marketâs expected to hit $1.2 trillion by 2050, and âsustainable bondsâ are already 11% of the global bond market in 2024. Climate bonds? Theyâre old news, but theyâre still packinâ a punch, with $3.5 trillion by the end of 2024. Renewable energy certificates (RECs) and biodiversity credits are just the cherry on top. đ
CarbonHoodâs tokenizinâ $70 billion in carbon credits, but thatâs just a drop in the bucket compared to the $2-trillion asset book. Weâre still in the early innings, folks. âŸ
Timingâs Everything, and the Clockâs Tickinâ âł
Why now? Well, the ESG narrativeâs been about as popular as a porcupine in a balloon factory, but the idea wasnât all wrong. The Paris Agreementâs fixinâ to tighten the screws on climate regulations starting in 2028, and thatâs gonna spike demand for carbon credits and green energy assets faster than a greased pig. đ·
The goalâs to keep warmân to 1.5°C, and countries are submitân their homework-Nationally Determined Contributions (NDCs)-to cut emissions. These targets get stricter from 2028 to 2030, thanks to Article 6.4 of the Paris Agreement, which sets up a global carbon credit tradân market. By 2028, itâll be in full swing, lettân countries and companies buy and sell credits like hotcakes. đ„
China and India are bettân big on credits to meet their targets, and the EUâs 2030 Climate Target Planâs pushân for a 55% emissions cut. But to hit that 1.5°C target, global emissions gotta drop 7.6% every year from 2020 to 2030-thatâs a whole lot of green investments. đ
The VCMâs expected to grow like a weed, fueled by regulations like the EUâs Carbon Border Adjustment Mechanism, which taxes high-carbon imports startân 2026-2028. Basic climate assets-bonds and ETFs-are already sittân on billions, and theyâre fixinâ to grow exponentially. But supply constraints and verification issues could throw a wrench in the works. Blockchain tokenization could smooth things out, though. đ
The Middle Eastâs Fixinâ to Be the Green RWA King đ°
The UAE and Saudi Arabia are leadân the charge with EV policies, solar parks, and blockchain registries. The UAEâs aimân for 50% electric vehicles by 2050, and Dubaiâs goinâ all in with 100% eco-friendly taxis by 2027. Their Net Zero by 2050 initiativeâs pushân projects like solar parks and tokenized carbon credits. Saudi Arabiaâs Vision 2030 includes 50,000 EV charging stations by 2025. đâĄ
Dubaiâs Mohammed bin Rashid Al Maktoum Solar Parkâs already at 3.86 gigawatts and aimân for 7.26 GW by 2030. Saudi Arabiaâs EV battery metals plantâs another feather in their cap. Blockchainâs supportân these efforts with carbon credit registries and tokenization. đ
The Road and Transport Authority (RTA)âs pushân delivery companies to switch to electric bikes, cuttân carbon emissions like a hot knife through butter. Pyseâs puttân delivery EVs on the road to replace those gas-guzzlers. đ”
The UAEâs Ministry of Climate Change and Environment is cookân up a blockchain-based national carbon credit registry for transparency, and hubs like Dubaiâs DMCC Crypto Centre are fosterân innovation in tokenizinâ environmental assets. Itâs a strong tailwind, folks. đŹïž
Tokenizationâs Still in Its Diapers đ¶
Blockchain could ease the transition to climate-friendly infrastructure, but adoptionâs still laggân. The UNâs highlightân the interest in usân blockchain for sustainable energy and carbon markets, but regulatory ambiguity and technical barriers are holdân things up. As governments focus on scalân these initiatives, adoption should improve over the next few years. đ ïž
The green asset market needs to grow from $2.1 trillion in 2024 to $5.6 trillion per year from 2025 to 2030 just to stay on track for global net zero. Blockchainâs potential to streamline verification and liquidity is clear, but widespread adoption hinges on resolvân regulatory fragmentation and infrastructure gaps. Consumer educationâs key to bringân these products onchain and to market. đ
Tokenization technology for green assets is primed for growth, but the marketâs still playân catch-up, relyân on policy alignment and private-sector collaboration to unlock its multitrillion-dollar potential. đ±đ°
Opinion by: Nicholas Krapels, head of research and development at Mantra. đ§
This articleâs for general information purposes and shouldnât be taken as legal or investment advice. The views expressed here are the authorâs alone and donât necessarily reflect those of CryptoMoon. đ
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2025-08-20 17:01