How Is Hedera Transforming Carbon Credits and Supply Chain Tracking?

Hedera is being used to track carbon credits and supply chains through two main tools: Hedera Guardian, which digitizes and verifies carbon credit issuance for registries like Verra and BCarbon, and TrackTrace, a platform built by The Hashgraph Group that records product origin, emissions, and compliance data for the European Union's Digital Product Passport rules. Both tools run on Hedera's public ledger, which uses a consensus method called hashgraph instead of a traditional blockchain structure. This lets companies record data that cannot be altered after the fact, while keeping transaction costs low and settlement fast.

The result is a shared record of where a carbon credit or a physical product came from, who verified it, and what happened to it next. That record is open for anyone to check, which is the core problem these tools are trying to solve.

Why Do Carbon Markets Need Blockchain Tracking?

Carbon credits represent a tonne of greenhouse gas that was either avoided or removed from the atmosphere. The trouble is that credits have historically been tracked through spreadsheets, PDFs, and registry databases that do not talk to each other. This has left the market open to double counting, where the same credit is sold or claimed more than once, and to inflated claims about how much carbon a project actually removed.

Hedera Guardian addresses this by acting as an open-source governance layer for environmental asset data. It automates measurement, reporting, and verification, a process the industry calls MRV, and ties each digital carbon credit to a specific, auditable methodology. According to Hedera, the Guardian ecosystem has built the largest open-source library of digitized carbon methodologies in the world.

Verra's Integration With Hedera Guardian

Verra, one of the largest carbon credit standards bodies, announced a long-term collaboration with the Hedera Foundation to connect Hedera Guardian directly to its Verra Project Hub. Mandy Rambharos, CEO of Verra, described the partnership as a step forward in the organization's digitalization strategy, aimed at making project registration, verification, and credit issuance faster and more transparent. 

The integration gives project developers real-time access to methodology updates and lets reviewers search and analyze submission data while keeping proponent confidentiality intact.

How Are Real Carbon Registries Using Hedera Right Now?

Several registries and project developers have already moved live carbon credit data onto Hedera rather than treating it as a pilot exercise.

• BCarbon, a nonprofit registry connected to Rice University's Baker Institute for Public Policy, migrated more than 2 million issued carbon credits onto Hedera in February 2026. The credits span methane abatement through well plugging, soil carbon sequestration, forestry, and blue carbon projects. BCarbon Chief Executive Officer Eric Unverzagt said the move to Hedera combines scientific rigor with digital infrastructure that supports auditable, tradable credits.
• DOVU, working with Veterans Carbon Holdings, issued the first third-party validated soil-sample carbon credits on Hedera, bringing $1.1 billion in assets into DOVU's Digital Asset Warehouse, with $600 million of that directed to American family farms over a nine-year contract.
• Gold Standard and ATEC Global issued the first fully digitized cookstove carbon credits in March 2026, verified through a digital MRV process and made publicly traceable on the Hedera Guardian ledger. The eCook Bangladesh project uses IoT-connected SIM cards on cookstoves to transmit real-time usage data, which is then audited by a third party before Gold Standard approves final issuance. Wes Geisenberger, Executive Director of Sustainability at Hashgraph, noted that digital MRV is expected to shorten issuance timelines that historically took up to two years under manual verification.

Worth noting, dMRV, or digital monitoring, reporting, and verification, replaces manual paperwork with sensor data and automated audit trails. Every credit issued this way can be checked independently through tools like the open-source Hedera Atlas dashboard, without needing to trust a single central party.

How Does Hedera Track Physical Supply Chains?

Carbon credits are one side of Hedera's sustainability use case. The other is tracking physical goods as they move through manufacturing, shipping, and retail. This has become a compliance issue in Europe, not just a nice-to-have feature.

The EU's Ecodesign for Sustainable Products Regulation, known as ESPR, came into effect on July 18, 2024, and requires a Digital Product Passport for products sold into the EU market, including imports. The passport is typically accessed through a QR code and must contain data on a product's origin, composition, sustainability credentials, and lifecycle. Battery passport requirements apply to electric vehicle and industrial batteries starting February 18, 2027, with textiles, clothing, and iron and steel products covered from July 2027.

TrackTrace and the Digital Product Passport

The Hashgraph Group built TrackTrace on Hedera specifically to help companies meet these requirements. The platform records supply chain data including product quality, raw material origin, carbon emissions, and responsible sourcing information. 

Each product or process gets a decentralized identifier, sometimes called a DID, that stores related records and lets independent auditors verify them without going through a central authority.

TrackTrace is built to work alongside existing enterprise resource planning systems rather than replace them. Micha Roon, Head of Engineering at The Hashgraph Group, said the platform was designed with GDPR compliance built in, so businesses can share required compliance data without exposing sensitive intellectual property or personal information. The architecture also uses Hedera's consensus algorithm to secure records against tampering across borders.

TrackTrace has also been paired with Merck's M-Trust physical authentication technology, letting companies verify product origin, authenticity, quality, and movement together. Thomas Endress, Executive Director of M-Trust at Merck, pointed to a rise in falsified certificates of origin in the cocoa market during 2026 tied to new EU deforestation rules as one reason demand for this kind of verification is growing. TrackTrace is aimed at industries where provenance matters most, including food, pharmaceuticals, electronics, luxury goods, and industrial components.

What Other Companies Are Involved in Hedera's Supply Chain Push?

Hedera's supply chain tools are backed by a governing council rather than a single company. Members relevant to sustainability and logistics work include:

• FedEx, which joined the Hedera Council to support digital infrastructure for global shipments
• Dell, Google, IBM, and Deutsche Telekom, which participate in council governance
• PwC, which provides regulatory compliance support for TrackTrace's Digital Product Passport rollouts

This is not the first time Hedera has been used for supply chain traceability. Medical Value Chain deployed a Hedera-linked pharmaceutical track-and-trace system in Bahrain in 2021, using Hedera Consensus Service to notarize records alongside a permissioned blockchain layer. That earlier deployment focused on patient safety and reducing counterfeit medicine, showing the same traceability model applied outside the carbon and ESG context.

What This Looks Like in Practice

Put together, the carbon and supply chain use cases rely on the same underlying pattern:

• Data is captured close to the source, whether that is an IoT sensor on a cookstove or a scan at a factory
• The data is timestamped and recorded on Hedera's public ledger, which cannot be edited after the fact
• A third party, such as Earthood for carbon credits or PwC for product passports, verifies the data against a set methodology or regulation
• The verified record stays open for auditors, buyers, or regulators to check independently

This is different from older systems where a registry or a customs office held the only copy of the record. On Hedera, the record itself is the shared reference point.

HBAR Price Snapshot

For readers tracking the network's native token, HBAR was trading at roughly $0.071 as of early July 2026, giving Hedera a market capitalization near $3.12 billion, according to CoinGecko data. 

HBAR is used to pay transaction fees on the network, including the fees generated by Guardian and TrackTrace activity, though the tokenomics of HBAR are separate from how the tracking tools themselves function.

Conclusion

Hedera's carbon credit tracking runs through Hedera Guardian, which ties digital MRV data to registries like Verra, BCarbon, and Gold Standard, giving each credit an auditable record from issuance to retirement. Its supply chain tracking runs through TrackTrace, which generates the origin, sourcing, and emissions data required for the EU's Digital Product Passport and links that data to enterprise systems through decentralized identifiers. 

Together, these tools give registries, manufacturers, and regulators a shared, tamper-resistant record instead of separate paper trails, which is the specific gap both carbon markets and cross-border supply chains have struggled with.

Resources

1. Press Release by Verra: Verra and Hedera to Accelerate Digital Transformation of Carbon Markets
2. Page by Hedera: Sustainability Use Cases
3. Press Release by Gold Standard: First Fully Digital Cookstove Carbon Credits Issued by Gold Standard and ATEC Global
4. Report by DLT Earth: BCarbon Migrates Carbon Registry to Hedera to Enable Digital Audit Trails
5. Report by Genfinity: Hedera February 2026 Recap: FedEx Joins Council, Davos Leadership, and Carbon Markets Scale to $1.1 Billion
6. Report by Cointelegraph: Hashgraph Group Launches Hedera Tool for EU Digital Product Passports
7. Report by Inside Ecology: The Hashgraph Group Announces the Launch of TrackTrace for Compliance With EU's Digital Product Passport (DPP) Regulation
8. Report by Bitget News: Digital Product Identification Platform Goes Live in the EU on Hedera
9. Blog Post by Hedera: Hedera Consensus Service and MVC Track-and-Trace Platform Now Fully Integrated for Pharmaceutical Supply Chain Compliance and Finance
10. Data by CoinGecko: Hedera (HBAR) Price, Market Cap & News