The carbon credits market has exploded to a value of over $250 billion. A company called carbon(plan) conducted research revealing problems with the efficiency of California’s forest carbon offset program; 29% of offsets did not have the required environmental impact, worth $410 million in credits.
While the carbon credits market has grown rapidly, it still remains a highly fragmented market with a lack of standardization and transparency.
Solution: A global and digital platform for the issuance, rating, trading, compliance, impact assessment, and utilization of carbon credits.
Information needed for the rating of carbon credits can be attached in an immutable record for transparency, pricing, and auditability.
For entities mandated to purchase carbon offsets, compliance can be done using the public database and IoT devices.
Smart contracts can be used to create an open, transparent, and consolidated market for carbon credits.
The utilization of carbon credits can be tracked openly and corruption or misappropriation can be targeted.
The impact of carbon credit systems can be tracked and reported on public dashboards.
A few blockchain startups tried to solve these problems with limited success due to limited adoption from stakeholders and underwhelming solutions to existing problems. I believe they can be more successful now with the advance of the underlying technology, improved understanding of token economics, and greater acceptance by the general population.
Disclaimers: http://bit.ly/p21disclaimers
Not any type of advice. Conflicts of interest may exist. For informational purposes only. Not an offering or solicitation. Always perform independent research and due diligence.
