Commonwealth Bank of Australia has unveiled a blockchain-based digital marketplace prototype where users can trade government biodiversity credits.
In 2017, the North South Wales government introduced an expanded Biodiversity Offsets Scheme which requires developers to find and buy biodiversity credits to offset the impact of their developments. The credits can be generated by landholders establishing stewardship sites to protect biodiversity there in perpetuity.
In a bid to create a market for the credits, CommBank has teamed up with BioDiversity Solutions Australia (BDS) to build a prototype that enables the creation of tradeable digital 'Biotokens' within a blockchain-powered marketplace.
The partners argue that a marketplace opens up a new income source for landowners, creates an investment opportunity for buyers, and also helps to protect biodiversity. They are now looking for partners to commercialise the platform.
Rod Barnaby, MD, BDS, says: "Our vision was to help facilitate the protection of precious environmental ecosytems, while also creating an alternative source of income for landowners and rewarding them for preserving biodiversity on their land."
Sophie Gilder, head, experimentation and commercialisation for blockchain, AI and emerging tech, CommBank, adds: "Creating a transparent, accessible, secure and liquid market place for the creation and trading of biocredits, aligns with our strategic focus on sustainability, support for regional economies and exploration of emerging technologies to deliver tangible benefits to our customers."