A Kerala-based sustainability startup, Green Worms, in collaboration with Circularity Innovation Hub India, has launched a pioneering circular economy project that integrates Circularity Credits with Central Bank Digital Currencies (CBDCs) issued by the Reserve Bank of India (RBI). This groundbreaking initiative, the first of its kind in India, is set to transform waste management practices while advancing sustainability and financial inclusion.
The project introduces Circularity Credits as an innovative environmental asset, traded between $40 to $80, which aims to reward eco-friendly efforts like recycling and waste management. The credits have already made a significant impact by generating an additional income of Rs 500-1,000 per month for marginalized communities, including farmers and sanitation workers. The goal is to scale this income to Rs 5,000 per month over the next three years, with plans to positively impact one million lives in the long term.
By integrating these credits with RBI’s programmable CBDCs, the initiative ensures transparency, traceability, and secure disbursement of payments. This allows recipients, such as workers in waste management, to directly benefit from their contributions to the circular economy. Notably, over 100 women involved in plastic and textile waste management under Kerala’s Kudumbashree program have already received income through this system.
The initiative demonstrates the potential of merging environmental sustainability with financial inclusion, establishing a model that bridges the gap between the circular economy and economic empowerment. The success of this project is a testament to the innovative potential of combining digital currencies with climate tech solutions, offering a scalable model for the rest of India.Building on its success, Circularity Innovation Hub India plans to expand the deployment of Circularity Credits and CBDCs across the country. This will unlock new opportunities for waste valorisation, enhancing both environmental sustainability and financial resilience for underserved communities.
As part of its larger vision, the startup is also working on developing material-specific value chains with manufacturers and brands, incentivising waste collection and furthering the transition to a circular economy in India.This initiative follows Circularity Innovation Hub’s earlier pilot project with farmers in Maharashtra, showcasing the success of integrating programmable CBDCs in India’s agricultural sector. By linking technology with sustainability, the project paves the way for wider adoption of blockchain-based financial solutions in sectors beyond waste management.
