Charoen Pokphand (CP) Group has partnered with Mae Fah Luang Foundation on an inclusive carbon credit tokenisation initiative to turn forests into digital natural capital.
Carbon credit tokenisation refers to the process of converting a verified carbon credit into a blockchain token for transparent trade.
In the first phase, carbon credits generated from forests managed by the foundation are made available through the TrueMoney app, allowing users to purchase tokens to offset personal travel or daily consumption.
Suphachai Chearavanont, senior vice-chairman of CP Group, said the collaboration seeks to tokenise carbon credits from Doi Tung forest, aiming to bridge the gap between corporate environmental, social and governance goals and grassroots community development.
CP Group committed 30 million baht to purchase these carbon credit tokens, which he called a strategic move to support an inclusive conservation model that considers the natural capital economy.
"This budget is allocated for the maintenance of forest areas and supporting designated villages," said Mr Suphachai.
CP's subsidiaries are expected to join the initiative in subsequent phases, he said.
The pilot project covers 10,000 rai in Chiang Mai, Chiang Rai and Tak provinces, aiming to create new revenue streams for communities through blockchain-enabled conservation.
"Long-term forest conservation requires stronger economic incentives for communities living alongside forests," Mr Suphachai said.
CP Group estimates if around 200 households managing the initial 10,000-rai area can generate an additional 10,000-15,000 baht in monthly income through conservation activities alongside high-value agriculture, the model could significantly reduce pressure on forests while improving rural livelihoods.
The company outlined a roadmap for 2026-2030 to develop a comprehensive digital system connecting forest restoration, carbon sequestration and natural capital data.
During the first phase, consumers can purchase certified carbon offsets using an instant redemption mechanism supported by blockchain, allowing payment, verification and issuance of carbon offset certificates within a single digital experience.
Users will not hold digital tokens in electronic wallets, as blockchain will be used to improve transparency and traceability throughout the transaction process, noted the group.
FULLY TOKENISED SYSTEM
In later phases, CP plans to develop a fully tokenised system, subject to regulatory approval, enabling tokenisation not only of carbon credits, but also a broad range of services, biodiversity and other forms of natural capital.
The company believes digital tokens can become a new financing mechanism for forest restoration projects while expanding participation from businesses, investors and the public, he said.
The pilot area is expected to generate around 10,000 tonnes of carbon dioxide equivalent in carbon credits.
CP also plans to establish a revolving forest restoration fund worth more than 30 million baht with the foundation by 2030 to support long-term community development and forest rehabilitation.
ML Dispanadda Diskul, secretary-general of the Mae Fah Luang Foundation, said the initiative is in the second phase of the Bank of Thailand's regulatory sandbox, seeking to transform all 90,000 rai of Doi Tung forest into a digital asset class. The process is expected to be completed later this year.
