Published on May 17th, 2018 | by bitcoin0
IBM and Veridium will be transforming Carbon Credits into Blockchain-Based tokens
IBM has partnered with environmental fintech startup Veridium Labs to turn carbon credits — tradable instruments that provide an economic incentive to those who want to reduce their greenhouse gas emissions — into blockchain-based tokens.
While the carbon credits market exists, with many active sellers and buyers, measuring carbon emissions is complicated and costly, and purchasing carbon credits can be complex.
According to the joint press release, “blockchain based digital assets, or tokens, can enable innovative ways to buy and use” carbon credits.
Relying on IBM’s blockchain technology and expertise, Veridium “plans to transform carbon credits into a new type of fungible digital asset that can be redeemed and traded on the Stellar network.” Their approach “will encompass the entire process of carbon footprint accounting and offsetting.” The tokenized carbon credits will include REDD+ credits from InfiniteEARTH, backed by projects that pursue long-term sustainability.
“Today REDD+ credits are over the counter assets and there is no central exchange.” Therefore, IBM and Veridium’s initiative, also supported by Stellar, could significantly simplify carbon credits trading, thus making carbon credits more appealing and contributing to environmental preservation and sustainable development.