THIS IS WHY THE CO₂ CREDIT MARKET NEEDS BLOCKCHAIN
A good friend of ours at Trusticate, who persistently works for our climate and human well-being, just shared an article with us from this week’s Wall Street Journal with the comment: “This is why the CO2 credit market needs blockchain.”
The article from The Wall Street Journal reports on some of the current challenges facing the carbon credit market and some of its consequences.
Despite the carbon credit market’s initial promise as a tool to combat climate change, it has faced significant criticism and difficulties. Issues include lack of transparency, challenge of "greenwashing" (where companies falsely claim environmental benefits), and middlemen taking out funds meant for environmental projects.
Particularly affected are indigenous and local communities, the families who own the land used for carbon offset projects. These communities often do not receive the promised financial benefits from the sale of carbon credits, exacerbating their vulnerability and creating mistrust in the system. This is evident in the case of families in the Peruvian Amazon who work to preserve the rainforest while harvesting Brazil nuts. The money for their efforts came from the sale of carbon credits, a once booming market that has collapsed in the past two years. Without this cash, the funds for the families will dry up, making it harder for them to protect the rainforest.
Trusting the climate efforts we choose to support is crucial. That's why at Trusticate, we offer blockchain technology to enhance transparency and accountability, making it possible for everyone to access information about the climate-improving initiatives they support or are considering supporting.
At Trusticate, we essentially are working to speed up needed actions to help the climate and human well-being by offering technology-driven transparency.
In light of the pressing challenges related to climate change and the current lack of trust, which often slows down climate-improving initiatives, technical possibilities can be utilized to bring information and transparency to everyone, helping to create more trust.
At Trusticate, we are happy to utilize the benefits of blockchain technology to help in the fight against climate change!
Notable references:
Cash Dries Up for Locals Fighting Climate Change.
By Henry Kronk
