The Hashgraph Group (THG) has partnered with Mahatma Phule Backward Class Development Corporation Ltd. (MPBCDC) to launch an initiative to build India’s first State Carbon Bank on the Hedera distributed ledger. The signing ceremony was held at Sofitel Mumbai in the Bandra Kurla Complex and brought together senior government officials, tech partners, and industry stakeholders .
Why This Initiative Matters?
India’s Carbon Credit Trading (CCT) scheme, enacted in April 2025, mandates greenhouse gas emission intensity targets. Entities that exceed targets may issue tradeable carbon credits; those that fall short face penalties twice the average credit price for that cycle. The urgency for a compliant digital platform to handle issuance, tokenization, and trading is now critical.
The nascent Indian carbon market is projected to scale to up to $50 billion within five years. This is driving demand for secure and transparent infrastructure to support credit issuance and management in both compliance and voluntary contexts.
Deploying the carbon bank on Hedera enables essential features like tokenized digital certificates, end-to-end traceability, and immutable audit logs. These capabilities significantly enhance trust in credit issuance and trading mechanisms for all participants.
Parties Involved in the MPBCDC Carbon Bank
The Hashgraph Group (THG) is a Swiss-based venture technology firm that builds enterprise-grade ESG and carbon banking solutions using Hedera. THG has delivered deployments across Europe, the Middle East & North Africa, and the Asia-Pacific region. Its engineers are Hedera‑certified and experienced in carbon‑focused DLT systems
Mahatma Phule Backward Class Development Corporation Ltd. (MPBCDC) is a Maharashtra state entity dedicated to empowering marginalized communities through social and economic enterprise development.
Aaryahub Technologies, MPBCDC’s technical partner, specializes in ERP system implementation, SAP integration, and digital frameworks. The company will furnish the technical backbone for the carbon bank platform.
THG’s CEO Stefan Deiss highlighted the project’s aim to create a robust, secure and scalable platform that supports ESG compliance while enabling marginalized producers to benefit financially.
“The Hashgraph Group is excited to build a robust, secure, and scalable State Carbon Bank for the Government of Maharashtra, while empowering social and economic development to enhance the livelihoods of marginalized communities,” Stefan said.
Anindya Roychowdhury, THG’s Head of Global Partnerships, emphasized India’s growth trajectory in carbon market development and Hedera’s role therein .
“The India carbon market is at its cusp and will explode in the coming years. I am delighted that THG and Hedera are part of this story as it unfolds; along with all our other ongoing and upcoming strategic initiatives in India, this will take Hedera a step further towards becoming the country’s preferred enterprise DLT,” Anindya said.
Global Context & Carbon Market Trends
Globally, carbon markets continue expanding rapidly. As of 2023, regulated trading schemes had reached approximately $950 billion in value—with the EU emissions trading system accounting for around 87% of that total.
India’s newly implemented CCT scheme builds on existing mechanisms such as Perform, Achieve & Trade (PAT) and Renewable Energy Certificates. Experts at Columbia University note that India’s intensity‑based scheme may evolve toward a volume‑based cap‑and‑trade system in the future, aligning with global standards .
Meanwhile, within Hedera’s ecosystem, organizations like Blockchain for Energy (B4E) are developing emission-reporting standards that combine Hedera’s DLT with AI and IoT sensors for trusted data. These initiatives signal readiness for scalable carbon management solutions on Hedera.
Industry examples illustrate the potential:
- Ethiopia’s REDD+ afforestation credits support community-based projects issuing verifiable tradable certificates.
- Regenerative agriculture initiatives in Latin America issue micro‑offsets for smallholder cooperatives using tokenized platforms.
- Hedera pilots, such as the Hedera Guardian carbon token workflow, validate secure token minting and verification for enterprise emissions projects—demonstrating the platform’s suitability for this deployment.
Together, they suggest that Maharashtra’s carbon bank could serve as a replicable model for other Indian states and emerging markets designing ESG-compliant carbon frameworks.
Outlook: Inclusion, Trust & Digital Integrity
Families engaged in agro‑forestry, composting, or waste‑to‑energy projects often lack access to formal carbon trading due to high verification costs and fragmented systems. The carbon bank will issue digital, tokenized certificates efficiently—enabling small‑scale generators to participate in structured markets.
By recording ledger entries on Hedera’s carbon‑negative network with fixed, predictable fees, the platform minimizes overhead while preserving auditability and trust.
MPBCDC’s leadership has underscored the project’s potential to unlock latent income streams for producers previously excluded from structured carbon credits. Aaryahub’s team brings equity trading platform and ERP experience to ensure user-friendliness and compliance alignment.
Critical Challenges Remain
Columbia‑University analysts caution that intensity‑based carbon regimes may weaken long‑term emissions reduction incentives unless calibrated and gradually transitioned to volume‑based systems. India must build transparent emissions registries, cap‑management frameworks, and governance protocols in line with global best practice.
Effective implementation also requires capacity-building and surveillance to avoid over‑issuance or double‑counting. Decision makers should draw lessons from the structured rollouts in EU, China, and California markets.
What Lies Ahead
While detailed deployment plans have not yet been shared, the signing ceremony signals initial commitment. THG, MPBCDC and Aaryahub will now collaborate to design and deliver the State Carbon Bank infrastructure on Hedera, aligning with India’s carbon trading policy.
If executed effectively, the platform could help Maharashtra—and by extension India—scale a transparent, credible carbon credit infrastructure that empowers marginalized communities and attracts ESG-focused capital. It may also serve as a blueprint for further carbon banking solutions across Indian states and similar markets worldwide.
As global carbon markets intensify ahead of upcoming regulatory regimes, India’s first State Carbon Bank on Hedera could position Maharashtra as a sustainability and innovation frontier in the broader climate finance ecosystem.
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Image Credits: The Hashgraph Group (THG)
