The use of blockchain technology in carbon market trading is still relatively new, and many studies are being conducted around the world to determine the technology’s suitability for improving carbon trading. A 2022 study revealed that companies nowadays are more willing to participate in carbon pilot projects using blockchain technology.
Another study identified 39 organisations that are developing blockchain solutions for carbon markets across two use cases: emissions-trading schemes and voluntary carbon markets. Among them are IBM and Ben&Jerry’s, both of which recently collaborated with blockchain companies to make carbon offsets more accessible to everyday consumers. IBM is also collaborating with Veridium Labs to develop digital tokens to facilitate the trading of carbon credits.
Poseidon is a pioneer in voluntary carbon markets, focusing on retail integration and pinning carbon credits to everyday purchases. CEO Laszlo Giricz explains: “When we realized that using the Stellar blockchain transactions could be done in three seconds and at such a low cost, we realised we could now transact in grams of carbon. Carbon credits could be incorporated into retail transactions at the point of sale for the first time.”
Other companies and organisations that are using or developing blockchain technology in their carbon credits trading include ClimateTrade, AirCarbon Exchange, Powerledger, JustCarbon, Likvidi, Phaeton Blockchain, Carbonex, Blockchain for Climate Foundation.
Although blockchain technology is still in its infancy and early stages of development, it has the potential to be the best technology in the near future for addressing the challenges of transparency in carbon trading
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