IBM multinational partners with Veridium Labs Hong Kong, in order to take advantage of Blockchain's technology to effectively and efficiently increase the carbon credit market, and also facilitate the carbon offsetting process.
Blockchain builds trust in the transaction logging system
The Blockchain distributes registry copies on multiple computers. In this way, a single record of all transactions underlies the entire network. The data in this record is resistant to forgery and facilitates verification.
Carbon credit regulates the carbon dioxide emissions that fuel climate change. Verdium Labs and IBM have jointly developed a Blockchain network to track how companies and other entities buy and sell carbon credits.
Companies that have not reached the ceiling on carbon credits have the opportunity to sell their loans to those who surpass them from near or far. The ceiling of carbon credit systems limits the release of carbon dioxide. In addition, companies can pay companies that do not reach their carbon credit quota, such as a forest plantation, to meet their carbon emissions.
Partnership aims to address high costs and inefficient market
"Blockchain-based digital assets, or tokens, enable innovation and use of underlying carbon offsets because they can move and settle quickly on networks," said IBM . "The integration of the entire carbon accounting and clearing process into a digital token on a public and authorized network can contribute to effective compliance with environmental measures, the transfer of ownership rights and the repurchase of underlying carbon offsetting. "
Jared Klee, the Blockchain Offer Manager at IBM added:
In the absence of a centralized exchange for carbon trading, there is essentially a market failure. Technology should allow companies that want to offset their carbon footprint to do so with less friction. It will be faster, easier and more profitable.This approach could extend beyond companies, in any case, Klee hopes.
Over time, we hope that individuals will be able to neutralize their impacts, but it will probably be necessary to change the technology.Todd Lemons, CEO and co-founder of Veridium reinforced IBM's comments in a press release:
For years, we have tried to reduce the environmental impacts at each stage of the value chain, but previous solutions still had significant complexities and costs. Our work with IBM is the first step in dramatically simplifying the accounting and clearing processes, and ultimately ultimately reducing costs.What do you think of the partnership between IBM and Veridium to enable companies to track the carbon footprint via the Blockchain? Comment in the comments section below.