CAD Trust Integrates Kingdom of Bhutan as First National Registry
The Kingdom of Bhutan is the first national registry to have fully integrated with the Climate Action Data Trust (CAD Trust) Metadata Layer
The Kingdom of Bhutan has today been announced as the first national registry to fully integrate with the Climate Action Data Trust (CAD Trust) Metadata Layer.
This groundbreaking move, officially unveiled at COP28, positions Bhutan as a regional leader in climate action, aligning with the goals of Article 6 of the Paris Agreement.
CAD Trust, initiated by the World Bank, the International Emissions Trading Association (IETA), and the Government of Singapore, is a decentralised, blockchain-based platform. It is designed to foster transparent accounting in carbon markets, in line with Article 6 of the Paris Agreement, which emphasizes international cooperation in climate goals through market-based mechanisms.
Bhutan, with its forests covering more than 72% of its territory, stands as a significant ‘carbon bank’, contributing to global biodiversity and carbon sequestration and is the world’s first carbon-negative country. The nation’s integration with CAD Trust exemplifies its dedication to climate mitigation and action.
By integrating with CAD Trust, Bhutan guarantees the efficiency and transparency of its climate mitigation efforts, in line with Article 6 implementation. The connection utilizes cutting-edge digital infrastructure, including blockchain technology, to uphold the integrity of carbon credit data and prevent double counting – a key tenet of Article 6.
Bhutan’s integration was directed by the Ministry of Energy and Natural Resources (MOENR). Technical support was provided by experts from Druk Holding and Investments (DHI), the commercial arm of the Royal Government of Bhutan. DHI drew upon extensive experience in national level blockchain projects to provide the IT infrastructure that enabled Bhutan’s integration.
“We are proud to be the world’s first carbon-neutral country. By entering the CAD Trust, we are leading by example in protecting the global ecosystem, buttressing Bhutan’s unique status. The Ministry of Energy and Natural Resources has taken the lead for the development of the carbon markets in Bhutan and has selected Druk Holding and Investments to pave the way for Bhutan to join the CAD Trust. We look forward to working closely with the World Bank and other global stakeholders on such a worthy project,” said Karma Tshering, Secretary, Ministry of Energy and Natural Resources.”
Bhutan’s connection with CAD Trust enhances its national climate action while also setting an exemplary model for international cooperation under Article 6. The move is instrumental in advancing global efforts to reduce greenhouse gas emissions and fulfil Nationally Determined Contributions (NDCs).
Yuvaraj Dinesh Babu, Executive Director, CAD Trust, commented, “Bhutan has today taken a position of leadership in integrating its national registry with CAD Trust. By doing this, Bhutan is demonstrating its ambition to contribution significantly to global climate change mitigation efforts, and has applied maximum transparency and efficiency to the way its domestic market operates and how carbon market participants interact with it. We expect many others to follow its example in the coming months as Article 6 markets become engrained in the fabric of global emission reduction and removal priorities.”
Bhutan’s integration marks the beginning of an expanding network for CAD Trust, which aims to connect with other national and independent carbon market standards over the coming weeks and months.
ABOUT CAD TRUST:
Climate Action Data Trust (CAD Trust) is a decentralised metadata platform that links, aggregates and harmonises all major carbon registry data to enhance transparent accounting in line with Article 6 of the Paris Agreement. The CAD Trust open-source metadata system uses blockchain technology to create a decentralised record of carbon market activity with the aim to avoid double counting, increase trust in carbon credit data and build confidence in carbon markets.
The Singapore-based initiative was founded by the World Bank, The International Emissions Trading Association (IETA) and the Government of Singapore. CAD Trust is an integral part of the World Bank’s Climate Warehouse End-to-End Digital Ecosystem.
ABOUT DRUK HOLDING & INVESTMENTS LTD.
Druk Holding & Investments, the commercial arm and trusted steward of the Royal Government of Bhutan, was established in 2007 to hold and manage the existing and future investments of the Royal Government for the long-term benefit of the people of Bhutan. As the largest and only government-owned holding company in Bhutan, DHI holds shares of 21 different domestic companies operating in the manufacturing, energy, natural resources, financial, communication, aviation, trading and real estate sectors.
To learn more, visit: https://www.dhi.bt/
Bhutan’s Ministry of Energy and Natural Resources: https://www.moenr.gov.bt/