Many people feel powerless against climate change. Industrial emitters continue to release greenhouse gases, a major contributor to climate change, while the public faces the consequences of climate disasters. Carbonlinked provides a solution: a unique token that brings the power to influence climate action into the hands of the public.

Understanding Carbonlinked Tokens

Each carbonlinked token corresponds to an emission unit, held by carbonlinked. For instance, the NZC token represents a New Zealand Emission unit within carbonlinked's account. By transforming these units into tradable tokens, carbonlinked offers the public:

• The Power to Influence: Purchasing and holding these tokens can directly affect emission prices. As these tokens become scarce, industries face higher costs to release new emissions. This makes investment to decarbonize their products more attractive.

• Investment Opportunity: With the decreasing availability of emission units through cap-and-trade programs, these tokens are positioned to become valuable assets.

The Cap-and-Trade System Explained

Governments employ cap-and-trade programs to encourage industries to reduce emissions.

These systems work by:

1. Setting a maximum limit on emissions.
2. Issuing tradable emission units, whose prices are market-driven.
3. Gradually reducing the number of available units.
4. Enforcing strict regulations to ensure compliance.

The price of these emission units is critical. The more expensive they become; the more companies are motivated to reduce their footprint.

The Challenge: Public Participation

Currently, the public faces barriers in purchasing emission units due to:

• Complex administrative processes.
• High minimum purchase requirements.
• Steep fees.

This keeps the public out of the emission market, resulting in a distorted price that does not represent the true cost of climate harm.

Carbonlinked's Solution

Carbonlinked issues tokens, backed 1:1 by emission units. Here's a simple walkthrough using the NZC token:

1. Emission units (NZUs) are deposited to Carbonlinked.
2. Carbonlinked mints equivalent NZC tokens.
3. These tokens are sent to the depositor, after fees.
4. Users can then trade these tokens or redeem them for emission units.

Maintaining Token Value

Should the token's value drift from its emission unit counterpart, an arbitrage opportunity emerges where someone can profit from buying one and selling the other. This mechanism keeps the token price in check with the emission unit.

The Real Benefits

• Combatting Emissions: Holding Carbonlinked tokens effectively curbs the emission unit supply. This makes it more expensive for businesses to release new emissions.
• Scarcity-driven Asset: Emission units are set to become scarcer over time. Token holders can benefit by trading them or redeeming the underlying units.
• Betting on Tomorrow: With many governments lagging in climate targets, a reduction in emission units (the cap) is expected, making these tokens even more valuable in the future.

Why Blockchain?

• Accessibility: With internet access and a wallet, anyone can participate.
• Digital Ledger Security: Secured by the Ethereum network, users have complete control of their assets.
• Transparency: All transactions and holdings are visible on the blockchain.
• Limitless Integration: Tokenized units can be integrated into various smart contracts, from loans to insurance. The possibilities are endless.
• Fractional Ownership: Tokens can be divided, accommodating all investor levels.

Costs and Security

Carbonlinked charges fees only during the token issuance or redemption. The entire minting and burning process is overseen through a secure multisignature wallet managed by Carbonlinked directors. The token contract is upgradable for future adaptability.