Algorand
Algorand, in partnership with ClimateTrade, allows corporations globally to track their carbon emissions easily. One should note that Algorand itself is carbon-negative.
Blockchain-based Carbon Credits
Play a vital role in redefining the fight against climate change by utilizing Web3 technology for carbon credits to control greenhouse gas emissions across the globe.
Carbon Credits – A Measure toward a Sustainable World
Carbon credits are tradable permit certificates that enable individuals and organizations to emit carbon dioxide per annum. One carbon credit allows its holder to emit one ton of carbon dioxide or any greenhouse gas. Typically, limitations on the maximum permissible carbon credit holding and usage are put forth by governments or global environment agencies. If a firm emits below the prescribed amount, they are incentivized for its efforts.
The main aim of such a “cap-and-trade”-based system is to reduce the amount of pollutant emissions by reducing allowances with time. The tradable feature plays its role when companies have excess carbon credits, which can be sold secondarily to other companies. The cost of a carbon credit varies with time and location, which makes it possible for the secondary market to thrive.
Why Use Blockchains for Carbon Credit Management?
As we know, blockchains are distributed digital ledgers that can be used for storing data. They are also publicly verifiable, which ensures transparency of the data stored. Such nature of blockchain ledgers can be beneficial for carbon credits to be tokenized. This is to ensure that small-scale investors can efficiently participate in the process of fighting climate change. Tokenized carbon credits on the blockchain can be easily tracked, and their usage can be monitored to ensure that the system actually benefits the planet. Also, since small and medium-scale industries can easily access publicly-working blockchains, blockchain-based carbon credits can reach a wider user base, and more emissions can be controlled.
