When people think of blockchain, most immediately picture Bitcoin, NFTs, or high-stakes crypto trading – not saving rainforests or cutting emissions. Meanwhile, when they think of sustainability, they imagine tree planting, solar panels, or electric vehicles – not smart contracts and decentralized ledgers.
At first glance, these two worlds couldn’t be more different. One is rooted in high-tech finance, the other in environmental activism. But what if blockchain’s greatest strength – its immutability – could solve one of sustainability’s biggest challenges: trust?
Enter NuCarbon, a company that’s backed by its own Blockchain technology (NuChain.Network) and also proving these two seemingly unrelated technologies are actually a perfect match. NuCarbon ensures that data records from MRV tools such as satellite, IoTs or community-input initiative remains verifiable, tamper-proof, and permanently recorded on the blockchain.
This combination means businesses investing in carbon offsets can trust that every credit represents real impact.
“Sustainability is all about long-term impact, and blockchain is all about permanent records. It’s a natural fit,” says Charles, CEO of NuCarbon Earth.
Berdaya Talk is an initiative that explores the stories of change makers and the initiatives they have developed to support sustainable development in Indonesia. This time, we are joined by Charles Pontoh, CEO at NuCarbon Earth.
The Carbon Market’s Trust Problem: Why Transparency Matters
Carbon credits are meant to incentivize sustainability, but trust issues have hindered their effectiveness. Some of the biggest problems in today’s market include:
- Greenwashing – Companies purchase low-quality credits that don’t actually reduce emissions
- Double counting – The same carbon credit is sold multiple times to different buyers.
- Lack of verification – Many projects lack real-time, third-party validation, making it hard to confirm if the promised impact is being delivered.
How Blockchain Fixes the Carbon Credit System
Blockchain offers a decentralized, transparent way to verify and track carbon credits. Unlike traditional carbon registries, which rely on centralized oversight, NuCarbon’s system uses blockchain to:
- Ensure transparency – Every transaction is recorded on an immutable ledger, preventing fraud.
- Eliminate double counting – Smart contracts automatically retire credits when they are used.
- Provide real-time verification – Data from satellites, remote sensing, and on-ground monitoring is recorded on-chain.
- Reduce costs and inefficiencies – Automating verification makes the process cheaper and faster.
“Blockchain allows us to create a tamper-proof record of every carbon credit record and transaction,” Charles explains. “This means companies and investors can see exactly where their money is going and what impact they are making.”
How NuCarbon Works: A Step-by-Step Breakdown
NuCarbon’s platform follows a structured, transparent process to verify carbon credits:
- Data Collection - Remote sensing, satellite imagery, and on-the-ground verification from forestry projects.
- Measurement & Verification - AI-powered carbon accounting quantifies the actual carbon sequestration potential.
- Blockchain Integration - Verified data is stored on a decentralized ledger, ensuring it remains immutable and publicly accessible.
- Credit Issuance - Tokenized blockchain-backed carbon credits are issued based on validated data.
- Market Access - Companies can buy, trade, or retire credits directly on the NuCarbon platform with full traceability.
Building Trust in Indonesia’s Carbon Market
Indonesia, one of the most biodiverse countries and a key player in the carbon market, boasts vast forests and numerous conservation projects. Alongside Malaysia and Vietnam, which have forest cover of approximately 55% and 47% respectively, Indonesia’s 53% forest coverage presents significant opportunities for forest management, afforestation, and REDD+ initiatives.
According to PwC’s 2024 Indonesia’s Carbon Market Whitepaper, Indonesia has the potential to absorb 113.18 gigatons of CO2, holding a crucial role in global carbon sequestration efforts.
NuCarbon Earth has started tapping this carbon market potential, being already involved in carbon projects across 510,000 hectares of forest in Indonesia. Some notable projects include carbon projects in West Papua covering 400,000+ hectares, West Kalimantan covering 114,000+ hectares and Central Sulawesi covering 50,000+ hectares. In the process, the company works closely with:
- Local NGOs and indigenous communities implementing a fair revenue-sharing model
- MRV, AI and satellite data to measure deforestation and reforestation impact.
- Government bodies and trade associations to improve policy frameworks.
Balancing High-Tech Innovation with Community-Led Solutions
One of the biggest challenges in climate tech is ensuring that technology empowers, rather than replaces, local communities. NuCarbon takes a hybrid approach, leveraging blockchain for transparent verification but keeping human relationships at the core.
“Our technology is only useful if it actually benefits people on the ground,” Charles says. “That’s why we work closely with local leaders, conservation groups, and policymakers to make sure our carbon verification aligns with real environmental and economic benefits.”
Concerns about energy consumption of the blockchain
Blockchain’s ability to bring transparency, security, and traceability to sustainability efforts is undeniable. It offers tamper-proof carbon credit verification, eliminates double counting, and enhances trust in climate finance – all critical elements in accelerating the transition to a greener economy. But there’s a catch: its energy consumption.
The very technology that promises to revolutionize carbon markets is also infamous for its heavy environmental toll. A study by the United Nations University found that during 2020–2021, Bitcoin mining consumed 173.42 terawatt hours of electricity – more than entire nations like Pakistan, which has a population of over 230 million people. The carbon footprint of Bitcoin alone was equivalent to burning 84 billion pounds of coal, requiring nearly 3.9 billion trees to offset.
This raises a fundamental question: Can blockchain truly be part of the sustainability movement when its own energy demands are so high?
Fortunately, not all blockchain systems operate like Bitcoin. Newer, more energy-efficient blockchain technologies are emerging that drastically reduce their carbon footprint. Proof-of-Stake (PoS) mechanisms, for instance, consume a fraction of the energy required by traditional Proof-of-Work (PoW) blockchains. - using 99.9% less energy than PoW as seen in PoS-based networks like NuChain Network Blockchain.
The Future of Blockchain in Climate Finance
Looking ahead, Charles sees three major trends shaping the future of carbon markets:
- Tokenization of carbon assets – Making carbon credits more liquid, tradable, and globally accessible.
- AI-powered carbon verification – Reducing costs and improving the speed of validation.
- Government-backed carbon pricing – Stronger policies will drive demand for high-quality credits.
“Indonesia is in a unique position to lead the next wave of carbon market innovation,” Charles explains. “The government’s commitment to net-zero policies and digital finance ecosystems creates huge opportunities for blockchain-based sustainability solutions.”
Lessons from the Founder: Advice for Climate Tech Entrepreneurs
Reflecting on his journey, Charles shares three key lessons for entrepreneurs navigating the intersection of blockchain and sustainability:
- Trust is everything – Whether in carbon markets or blockchain, credibility determines success.
- Regulation is both a challenge and an opportunity – Understanding policy changes is critical.
- Adoption takes time – Ecosystem-building and education matter just as much as technology.
For those looking to enter climate tech, his advice is simple:
“Find a real problem. Ensure your tech adds real value. And never compromise on integrity.”
How to Get Involved with NuCarbon
NuCarbon is hiring and looking for strategic partners to scale its impact. The company is expanding in:
- Blockchain & AI development – Building better verification tools.
- Forestry & sustainability expertise – Strengthening carbon measurement models.
- Partnerships & business development – Growing the ecosystem. NuCarbon is strategically positioning itself for the evolving regulatory landscape, ensuring that we are well prepared to scale climate focused solutions. In the meantime, we are in discussions with EV companies, exploring how our blockchain technology can accelerate the transition from internal combustion engines (ICE) to electric vehicles (EVs) as part of broader carbon reduction efforts.
“Collaboration is key. If we want to scale climate solutions, we need the best minds in blockchain, sustainability, and finance working together."
