4-3. Flow of consolidation of carbon credits with Regenerative NFT
The flow from the creation of the Regenerative NFT, its linkage with carbon credits, to the offsetting of the credits is illustrated in the chart below, using J-Credit as an example.
At SINRA, during the expected issuance stage of carbon credits like J-Credit, we can issue an Uncertified Carbon Credit NFT representing the right to transfer the said carbon credit. Through the action of purchasing an Uncertified Carbon Credit NFT, both individuals and corporations can support activities leading to the creation of carbon credits, which in turn promote the conservation and regeneration of natural resources.
After the carbon credits are certified by the carbon credit certification authority, by updating the carbon credit information in the NFT's metadata, the Uncertified Carbon Credit NFT is then upgraded to an Certified Carbon Credit NFT.
Ultimately, the carbon credits will be used by Japanese companies to offset their greenhouse gas emissions. As the Regenerative NFT will no longer be linked to the carbon credit, the respective NFT becomes non-transferable. However, its value as art remains intact, and its utility can still be utilized continuously.