The industrial city of Baotou in Inner Mongolia Autonomous Region has emerged as an unexpected pioneer in climate innovation through its groundbreaking digital carbon ticket system. This homegrown environmental program represents a significant evolution in carbon market mechanisms, combining blockchain verification with ecological conservation to create a transparent, efficient carbon trading ecosystem.
At the core of this initiative is a digital platform launched in 2021 that transforms traditional carbon credits into blockchain-verified digital assets. The system certifies carbon sequestration achieved by local forests and grasslands, creating tradeable digital tokens that provide real-time tracking and verification capabilities unavailable in conventional paper-based carbon credit systems.
The program’s practical impact became evident in June 2023 when Guyang county successfully monetized 150,000 metric tons of carbon credits generated from a 1,500-hectare state forest. This transaction, valued at over 2 million yuan ($281,754), demonstrated the economic potential of carbon trading while funding continued ecological development.
Unlike traditional corporate-focused carbon markets, Baotou’s system actively engages citizens through a mobile application that converts everyday eco-friendly activities—such as walking, cycling, and conservation efforts—into redeemable carbon credits. Residents like Qin Dan report widespread community participation, with neighbors earning carbon points that can be exchanged for merchant discounts or traded on the platform.
According to Feng Xiaodong, Director of Reform Development and Science Technology at Baotou’s Forestry and Grassland Bureau, the city has established a comprehensive carbon neutrality mechanism that uploads all critical operational data to blockchain for certification. This ensures unprecedented transparency throughout the carbon ticket development, trading, and application process.
The model’s success has attracted national attention, with enterprises from Zhejiang, Shandong, and Fujian provinces purchasing Baotou’s carbon credits to offset their emissions. The program reached a significant milestone when its credits were used to neutralize emissions during the 14th National Winter Games in 2024, marking the first application of regional carbon products at a national sporting event.