Putting carbon credits on the blockchain won’t solve the problem alone: Davos
Just trading carbon credits, on the blockchain or otherwise, won’t solve much for the environment, as companies need to understand why they use them and how they can make a real impact, carbon blockchain leaders argue.
During a panel session in Davos, Switzerland, moderated by Cointelegraph Editor-in-Chief Kristina Lucrezia Cornèr on January 16, several executives from carbon blockchain platforms spoke about the growing interest of companies in carbon trading.
Karen Zapata, COO of carbon blockchain platform ClimateTrade, said sustainability had been a “trending topic” with many companies eager to get involved, but said many still don’t understand it.
She recalled speaking to a sustainability manager at a “big, big company” who told her he doesn’t know what a carbon credit is or “how it works” but is being pressured by his marketing team to “move this forward.”
Zapata emphasized that companies won’t be able to communicate what they’re doing with carbon credits to their community if they don’t “even understand” what it is.
She added that one should be less concerned about the pricing behind carbon credits, and more about the impact. The price comes second, once the positive effect is understood, she explained.
Carbon Marketplace Tolam Earth CEO Matthew Porter added to the conversation, saying that carbon trading by itself “doesn’t solve much” without knowing why they do it and creating “incentives and drivers”.
He also added that putting it on the chain only solves a “little” inefficiency.
Related: Blockchain’s environmental impact and how it can be used for carbon removal
There has been no shortage of carbon credit development in the blockchain space in recent times.
Blockchain-based storage network Filecoin launched Filecoin Green, a protocol lab initiative designed to reduce the environmental impact of its original cryptocurrency Filecoin, in October 2022.
The first project it launched was CO2.Storage, a Web3 data storage solution that aims to provide transparency for carbon offsets and address traditional storage solutions for all types of digital environmental resources, including renewable energy credits.
WeWork CEO Adam Neumann dove into the carbon crypto space in May 2022, raising $70 million in the first major funding round for his climate technology venture Flowcarbon.
The project was created to make carbon trading more accessible by adding carbon credits to the blockchain.
