Crypto

2023 – Putting carbon credits on blockchain won’t solve the problem by itself: Davos

Simply trading carbon credits on the blockchain will do little for the environment. Carbon Blockchain executives say companies need to understand why they are using them and how to make a real impact.

During a panel discussion in Davos, Switzerland moderated by Cointelegraph Editor-in-Chief Cristina Lucrezia Corner on January 16, several carbon blockchain platform leaders spoke about the growing corporate interest in carbon trading.

Karen Zapata, COO of blockchain carbon platform ClimateTrade, said that sustainability was a “hot topic” and many companies were keen to get involved, but noted that many still don’t get it.

She recalls talking to a sustainability manager at a “big, big company” who told her that he didn’t know what a carbon credit was or “how it works,” but that his marketing team had pressured him to “get things done.” “.

Zapata noted that companies won’t be able to tell their community what they’re doing with carbon credits if they don’t even “understand” what it is.

She added that we need to worry less about the price of carbon credits and more about the impact. She explained that the price fades into the background once the positive impact is realized.

Carbon Market Tolam Earth CEO Matthew Porter added to the conversation by saying that carbon trading on its own “doesn’t solve much” without knowing why they do it and create “incentives and incentives.”

He also added that putting it on the chain solves only a “slightly” inefficiency.

Related: Blockchain’s environmental impact and how it can be used to remove carbon

Recently, there has been no shortage of developments in the field of blockchain in the field of carbon credits.

In October 2022, the Filecoin blockchain-based storage network launched Filecoin Green, a protocol lab initiative designed to reduce the environmental impact of Filecoin’s native cryptocurrency.

The first project he launched was CO2.Storage, a web3 storage solution that aims to bring transparency to carbon offset and traditional storage solutions for all digital environmental assets, including green credits, “renewable energy.”

WeWork CEO Adam Neumann plunged into carbon-based cryptocurrency in May 2022, raising $70 million in the first major funding round for his climate technology company Flowcarbon.

The project was created to make carbon trading more accessible by placing carbon credits on the blockchain.

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