Tokenize your carbon credit NFTs on the eco-friendly blockchain. Gain your distribution, showcase your project and increase transparency.
As individuals and companies are looking for tools to mitigate their impact on climate change, carbon credits are gaining traction as they incentivize the fossil fuel industry to become more efficient. A carbon credit is a tradable permit or certificate that grants the right to emit one tonne of carbon dioxide or the equivalent of another greenhouse gas. Carbon credits can help companies to meet their climate-change goals. More than 40 governments worldwide have now adopted some sort of price on carbon, either through direct taxes on fossil fuels or through cap-and-trade programs.
A carbon credit is a predetermined allotment of carbon dioxide or other greenhouse gases that an organisation is permitted to emit. One tonne of CO2 and CHG emissions is equivalent to one carbon credit. A credit becomes tradable when there has been an actual reduction in emissions. If an organisation emits fewer tonnes of carbon dioxide than it is permitted to, it may trade, sell, or store the extra carbon credits. When credit is sold, the seller’s emissions allowance is purchased. There are two types of carbon offset Credits: Compliance Credits and Voluntary Credits.
Compliance Credits are the regulated credits that are approved by national and regional governments or by any independent certification bodies.
Organizations, companies, and individuals can purchase more credits from offset issuers. These voluntary credits are not connected to the allowed compliance credits.
The market for carbon offsets today is extremely inefficient. Credits are currently sold in bulk to bigger corporations. This creates obstacles for smaller groups or individuals that want to buy offsets to balance off their environmental impact. This problem can be resolved by emerging technology. And here comes blockchain technology. Generally, this blockchain technology is a panacea for problems with current carbon offsetting. Blockchain enables increased transparency by storing data and transactions on a distributed ledger that is visible to everyone on the network. Blockchain can be used to trade carbon credits and aggregate small buyers for carbon offset projects due to its transparency. Additionally, the ecosystem for carbon credits built on blockchain technology is secure, effective, and perfectly suited for setting up the carbon credit market. The distributed immutable ledger makes it possible to issue and track carbon credits with accuracy. Small and medium-sized businesses can easily use public blockchains, lowering the barrier to entry for the carbon trading industry.