Regen Studio developed a report for the Dutch Blockchain Coalition on how Web3 technologies can address the biggest challenges in carbon markets — and why we need to look beyond carbon alone.
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Under the assignment to lead the thematic area of Energy & Sustainability for the Dutch Blockchain Coalition, Regen Studio developed a report on the evolving role of Web3 technologies in carbon markets. The report digs into how blockchain and decentralized technologies can tackle some of the most urgent problems in carbon markets today — and how they might fundamentally shift these markets toward a whole-planet approach.
Watch the webinar below.
For Dutch speakers who prefer reading, find the full report here.
Here's a summary of the report.
What Are Carbon Markets?
Carbon markets have become a key instrument for financing projects that reduce or offset greenhouse gas emissions. But as these markets have scaled, so has the criticism. How effective are carbon credits, really? And can we trust them? The report examines both regulated and voluntary carbon markets, laying out their strengths, their structural weaknesses, and the distinct challenges each one faces.
Challenges and Criticisms
Three core issues stand out. First, a lack of integrity — high-profile fraud cases have eroded trust. Second, flawed methodologies that make it hard to verify whether credits represent real impact. And third, what's often called "carbon tunnel vision": an overly narrow fixation on CO2 that ignores the broader web of environmental and social damage. The report makes a clear case that carbon markets need more transparency, stronger accountability, and a wider lens.
The Role of Web3 in Transforming Carbon Markets
This is where it gets interesting. By bringing decentralized technologies like blockchain into the Monitoring, Reporting, and Verification (MRV) process, carbon markets could become far more transparent and harder to game. The report explores tokenized carbon credits, multi-party environmental impact verification, and decentralized MRV systems — all of which could make carbon markets more credible and scalable.
Beyond Carbon: Regenerative Finance
Perhaps the most exciting part of the report is its exploration of Regenerative Finance, or ReFi. This growing movement uses Web3 tools to fund a much broader range of sustainability efforts — from biodiversity credits to impact certificates. ReFi doesn't just aim to sustain; it aims to actively regenerate environmental and social systems. It's a financial model built around the idea that money should flow toward healing, not just harm reduction.
In Conclusion
The report charts a promising direction for carbon markets. Web3 technologies have real potential to make these markets more transparent, more efficient, and better aligned with broader environmental goals. That said, the technology alone won't be enough — governance, standards, and genuine commitment to impact will matter just as much.
At Regen Studio, we're excited by this regenerative perspective on financing ecosystem services, though we're also mindful of the risks. New financial instruments need careful design to avoid repeating old mistakes.
Is this a field you're working in or thinking about? Want to design an innovation in this space, or position yourself for what's coming? Reach out to us!