Senken Starts Sale Of World’s First Carbon Forward Tokens

Senken Starts Sale Of World’s First Carbon Forward Tokens - Carbon Herald
Source: Erica Chiale via Shutterstock

Carbon credit marketplace senken has officially launched the first-of-its-kind financial instrument called carbon forward tokens or carbon forwards.

The carbon forwards provided by senken allow buyers to pre-fund different climate projects that are still in development at a lower cost and are very similar to futures in that the removals are delivered to buyers at a predetermined price at some point in the future. 

This new instrument is introduced to the platform with the help of Vlinder, a platform that builds high-quality carbon removal supply and climate tech solutions, which has committed to provide 500 tCO2 of forward carbon credits.

To make this venture a reality, senken has also teamed up with Toucan, who will provide the infrastructure for the entire process. 

These particular credits will bring in the funding of a mangrove reforestation project in Kenya and are what is referred to as blue carbon credits.

Blue carbon is the term used to describe CO2 that is sequestered by and stored in coastal and marine ecosystems and is what many see as a powerful carbon sink that can help mitigate climate change. 

Relevant: Japan To Study Feasibility Of Blue Carbon

In fact, marine and coastal ecosystems, such as mangroves, have been found to store up to 5 times the amount of CO2 than land forests.

Blue carbon credits, in particular, are such credits that are generated from the restoration, protection, and enhancement of marine and coastal ecosystems. 

The Vlinder Kenya Blue Carbon project is a major restoration effort that is certified by Verra and has an estimated CO2 removal capacity of 726,761 tons.

The 500 carbon forwards from this project will allow businesses that are looking to offset their carbon emissions to do so, while also future-proofing their operations. 

Read more: Kita And Chaucer To Insure Carbon Sequestration Projects

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