Circular Solutions Come Onchain: Xworks Issues the First Batch of Carbon Credits via Carbonmark Direct
Carbonmark has successfully issued the first batch of MSR-X (Material Substitution Reduction) credits developed by Xworks for its Verified Recovery and Recycling Plastic Project in the Netherlands.
This case study marks another step toward our vision of making every carbon credit a living digital asset — one that transparently embeds its full lifecycle data and verification history directly onchain.
Earlier this year, Carbonmark introduced its Direct Issuance framework — a new way for project developers to issue verified carbon credits directly onto public blockchain infrastructure.
Designed to support developers implementing novel methodologies or operating small-scale or decentralised projects that may be uneconomical to bring to market under traditional registries, Carbonmark Direct enables credit issuance on publicly verifiable and secure infrastructure — in our case, the Polygon and Base blockchains.
Now, this framework has reached an important milestone with Xworks.
Scaling Substitution-Grade Recovery Through Tokenization
This pilot in the Netherlands marks the first step in scaling a global network of decentralised recycling projects — bridging local recovery initiatives into international carbon markets through tokenized MSR-X credits, each representing 1 tonne of CO₂e avoided through virgin-material displacement.
Xworks is pioneering a circular-economy model that collects post-consumer plastics and returns them to the production cycle as traceable secondary raw materials.
The project addresses one of the world’s most persistent environmental challenges: millions of tonnes of plastic waste that are often landfilled or incinerated without traceability. Through tokenization and blockchain-anchored verification, Xworks establishes a transparent and auditable pathway for verified material substitution, where recycled polymers demonstrably displace virgin plastic production.
Data Integrity Through dMRV
At the heart of the initiative is Xworks’ digital Monitoring, Reporting, and Verification (dMRV) platform, which records and validates material flow in real time.
Using a combination of digitally verified material-flow evidence, location-anchored documentation, and independent validator checks, each tonne is tracked end-to-end with full chain-of-custody integrity.
Xworks operates under ISO 9001 (Quality Management) and ISO 14001 (Environmental Management), ensuring consistent data quality and operational control.
All emissions calculations follow ISO 14040/44 and ISO 14067 principles, using polymer-specific factors and conservative, validator-reviewed assumptions. A unified conservativeness treatment is applied to ensure accuracy and audit integrity.
Credits are issued only after independent verification by Control Union and are immutably recorded onchain via Carbonmark’s carbon-credit-factory contracts — smart contracts that publish both data and tokens in a publicly auditable format.
The dMRV platform ensures real-time transparency, with validator attestations and supporting evidence hashed and stored for complete traceability.
Xworks drives progress across multiple UN Sustainable Development Goals, including SDG 12 (responsible production), SDG 13 (climate action), and SDG 8 (economic empowerment of SMEs), by providing new revenue streams for decentralised recycling actors.
About Carbonmark Direct
Carbonmark Direct redefines traditional carbon credit issuance by enabling developers to issue credits onchain and create programmable climate assets. These credits are transparently recorded on an immutable public blockchain, ensuring unparalleled auditability and credibility.
The framework supports a wide range of emerging carbon removal technologies, including Direct Air Capture (DACCS), Bioenergy with Carbon Capture and Storage (BECCS), Enhanced Rock Weathering, Ocean Alkalinity Enhancement, and more.
Key Features
Faster Credit Issuance: Issue credits within 2–3 weeks when verification is provided by a recognized third-party validation and verification body (VVB).
Cost-Effectiveness: Avoid the high costs associated with traditional market infrastructure.
Enhanced Transparency: Blockchain-based tracking ensures credits are auditable and credible. You can integrate additional MRV data sources — including satellite imagery, sensor data, and other verified datasets — to demonstrate project impact.
Marketplace Access: List, manage, and sell credits directly on the Carbonmark platform or via our API.
Together with Xworks, Carbonmark is showcasing what transparency, traceability, and programmability across the carbon market look like.
Interested in how it all works?
Check our “Building with Blockchain in Carbon Markets” series:
Part 3 (coming soon)
In partnership with market innovators such as Xworks, Carbonmark is building the next generation of digital climate infrastructure — where verified environmental assets can be tracked and traded in real time.
Learn more about Xworks’ project and support it by purchasing their credits here.
