January 30th, 2025

3 min read

Carbon credits provide incentives for businesses to reduce carbon emissions, and they support and encourage conservation projects. But how can we be sure they are really an effective tool in the fight against climate change?

The system is straightforward: companies purchase credits that allow them to emit an equivalent amount of carbon dioxide (CO2). Each credit represents one ton of CO2 removed from the atmosphere through environmental protection, forestry, or other carbon removal projects.

Yet carbon credits can be controversial, particularly when it comes to accountability and effectiveness. For instance, there are questions about whether certain projects truly reduce emissions beyond what would have occurred naturally. This is where monitoring comes in.

NTT DATA’s new CO2Sink system uses advanced technologies including satellite imaging, IoT sensors, and AI to conduct such monitoring, accurately estimating the exchange of CO2 between vegetation and the atmosphere – and ensuring greater accountability for carbon credit projects.

Using advanced technology to monitor carbon credits

CO2Sink is based on the ‘eddy covariance’ technique. Eddy covariance is a widely used approach fore measuring the exchange of gas between ecosystems and the atmosphere. The CO2Sink platform uses this technique, together with advanced technologies such as digital twin, AI, IoT, and blockchain, to enable more accurate and transparent carbon capture data.

In addition, CO2Sink uses satellite data via machine learning algorithms to extend direct eddy covariance measurements to much larger areas than would otherwise be possible, allowing for the monitoring of thousands of hectares of forest on a continuous basis.

Protecting Italy’s forests using CO2Sink

One example of CO2Sink in action is in Italy’s Calabria region, where Calabria Verde conducts forestry activities and manages the forest biomass. The organization is also responsible for fire prevention and control, mountain policies, hydraulic monitoring, surveillance of the region’s hydrographic network, and support to the regional Civil Protection.

In the forestry sector, carbon credits incentivize sustainable forestry management practices such as reforestation and improved forest conservation methods. The credits provide revenue that can be used to fund further sustainability initiatives, and they open up new commercial opportunities with environmentally conscious businesses and investors. With this in mind, Calabria Verde saw a significant opportunity to support its sustainability efforts through carbon credits, and engaged NTT DATA to develop a system that would provide scientific measurement and monitoring of those credits.

The impact of CO2Sink

Using NTT DATA’s CO2Sink platform, Calabria Verde has been able to measure the absorption of CO2 in real time over about 5,600 hectares of forested area.  Because CO2Sink offers different modules that can be adapted as needed, Calabria Verde has been able to utilize a module designed specifically for its requirements. Calabria Verde’s system includes:  

  • Seamless integration of satellite data with field measurements gathered from sensors in strategic locations across Calabria’s forests.
  • AI algorithms that process vast datasets, providing nuanced insights into the intricate relationship between vegetation and CO2 levels.
  • Blockchain technology that provides a transparent and immutable ledger, preventing double counting and ensuring each carbon credit is unique.

Taken together, CO2Sink’s satellite imaging, IoT sensors, and AI-based data analysis provide accurate, transparent, real-time data, which in turn builds credibility and demonstrates the impact of Calabria Verde’s forestry projects. This creates trust among stakeholders and investors, and has led to the redevelopment and protection of one of Italy’s largest forests, Parco Lardone. It is expected that this project will continue to play a key role in enhancing the sustainability of the forests under Calabria Verde’s management, reinforcing the organization’s dedication to preserving and protecting these vital ecosystems for future generations.

Innovating the future of carbon credits

CO2Sink was recently named an Outstanding Project at the 2024 NTT Group Sustainability Conference Awards. With its innovative use of advanced technologies to generate robust metrics and measurement systems, CO2Sink helps to ensure that carbon credits are credible and quantifiable. This focus on accurate, transparent monitoring enables organizations to track – and prove –  their long-term commitment to the environment through the use of carbon credits. This will have a powerful, positive impact on the environment, for the good of all.