Can cryptocurrency help save the earth? IBM and a Veridium Labs are trying to make that happen. Veridium is going to take advantage of IBM’s blockchain technology to convert carbon credits into blockchain-based tokens. Now, there’s a bunch of hypothetical stuff going on here, but if Veridium and IBM can make this little project work, it could prove a useful way for companies to help offset their carbon footprints.
Here’s an except from a story that originally appeared in Bitcoin Magazine.
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.
In a joint press release, the two companies announced a collaboration to “transform the carbon credit market using IBM blockchain technology with the goal of making it easier for companies to offset their environmental footprints.”
“By using a public, permissioned blockchain network, we can help Veridium create a new sustainable marketplace that is good for business and good for the world,” said Bridget van Kralingen, senior vice president of IBM Industry Platforms and Blockchain. “This is a great example of how industries are being reinvented by blockchain [technology], in this case establishing a far more efficient and transparent approach to carbon accounting and offsetting that will empower individuals and companies to play a role in improving our environment.”
A carbon credit is defined as “a certificate showing that a government or company has paid to have a certain amount of carbon dioxide removed from the environment.” In return, environmental regulations allow the holders of carbon credits to burn a certain amount of fossil fuels.
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.
It’s impressive to see a company as big as IBM getting involved in a effort like this. Perhaps IBM’s stature will help carry this project forward.