In addition, environmentalists criticized the use of blockchain because of the large amount of energy consumed in its processing. An investor can buy them and expect them to value and then sell them.Īlthough the blockchain ensures that the same credit is not used more than once, the fact that they cannot monitor it until final use has caused a yellow light to light up on the certifiers. But there is no guarantee that its use will be immediate: in certifiers, a company can buy credits to stock and use them to offset future issues. After that, it is retired, that is, it goes out of circulation, and ceases to exist. In addition, credit fulfills its function when it is effectively used to offset greenhouse gas emissions. Some financial technology companies have already emerged in the past year with offers to turn carbon offsets into digital tokens using blockchain.īut the investees were unsuccessful, largely due to the difficulty of guaranteeing the quality of the credits marketed. This is not the first attempt to use blockchain to tokenize carbon credits, turning them into a true globally traded commodity. Together, they launched the Carbon Opportunities Fund, a fund to attract investments in voluntary carbon markets and expand access to financing for sustainable projects certified by international organizations. The first two are specialized in the development and financing of environmental projects and Chia, a technology company specialized in the cryptocurrency market. The initiative came from the World Bank’s International Finance Corporation (IFC), in partnership with the companies Aspiration, Cultivation, and Chia. ![]() ![]() The goal is to give more transparency to this market and improve the quality of assets using technology, not only to give more security to transactions but also to identify, monitor, and evaluate credits generated. It consists of trading carbon credits by turning them into cryptographic tokens – what we might call cryptocarbons. A new proposal to use the blockchain technology to combat climate change has just been launched, in line with ESG best practices ( Environmental, Social, and Governance Corporate Responsibility).
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