  The promising markets for voluntary carbon credits are faced with crippling
challenges to the certification of carbon sequestration and the lack of
scalable market infrastructure in which companies and institutions can invest
in carbon offsetting. This amounts to a funding problem for green transition
projects, such as in the agricultural sector, since farmers need access to the
liquidity needed to fund the transition to sustainable practices. We explore
the feasibility of mitigating infrastructural challenges based on a DLT Trading
and Settlement System for green bonds. The artefact employs a multi-sharded
architecture in which the nodes retain carefully orchestrated responsibilities
in the functioning of the network. We evaluate the artefact in a supranational
context with an EU-based regulator as part of a regulatory sandbox program
targeting the new EU DLT Pilot regime. By conducting design-driven research
with stakeholders from industrial and governmental bodies, we contribute to the
IS literature on the practical implications of DLT.
