IBM thinks blockchains can help reduce carbon emissions
It’s turning carbon credits into crypto-tokens—part of a scheme to create a massive marketplace of novel digital assets.
Unfortunately, purchasing “high quality” carbon credits is a complex, cumbersome process that has to be done in over-the-counter transactions, which slows down the market for them, says Jim Procanik, executive director of the Veridium Foundation. Blockchain technology, he says, is a “perfect background for creating a more liquid and transparent marketplace.”
That’s why Veridium has teamed with IBM to “tokenize” carbon offset credits using the Stellar blockchain. Its token, which is slated to launch later this year, will be backed by a basket of different carbon assets verified by third parties according to international standards. Some of those credits will come from Veridium’s sister company, InfiniteEARTH, which already has an established business selling carbon credits to companies that want to offset their carbon footprints.