Veridium Labs announced recently that it has partnered with IBM and Stellar to tokenize carbon credits to enable companies to track their carbon footprint with blockchain. Blockchain technology will be used to measure carbon emissions to tackle the environmental issues including the global warming.
According to Todd Lemons CEO and Chairman at Veridium, the partnership will not only transform the carbon markets but also help create an economically sustainable source of funding for environmental conservation, which is the first step to development of regenerative economy.
Each Company Has A Role To Play
The partnership involves three companies, IBM, Veridium, and Stellar each playing a major role in the project. Veridium will set up the structure and issue the tokens, while Stellar will act as the digital ledger or platform for the blockchain that will facilitate the transactions. IBM will handle the operations of trading activity that include buying, selling and managing the tokens.
The aim of the project is to help companies to account for the complex carbon credits to measure the impact of a product throughout the entire process of supply chain that involves multiple suppliers and sellers.
A Solution To The Problem
In the recent past, InfiniteEARTH developed a means to account for the carbon credits through its Redd+ forest carbon accounting methodology to determine the value of credits but it doesn’t offer a mechanism to transform the credits into real assets such as tokens. Hence, the three companies have come together to solve the problem by developing a crypto token that will act as a base in which the carbon credit is valued and accounted for.
For several years, companies have tried to mitigate the environmental impacts in their value chain but the existing formulas have proofed to be more complex and costly. The partnership with three firms will therefore simplify the accounting and offsetting the processes hence helping companies reduce costs and enhance efficiency in their operations.
The project comes at a time when companies across the world are grappling with the ecological impacts and are considering renewal. For instance, Apple announced recently that its global tech facilities are powered by 100%.
Also, Google tried a similar initiative last year by buying renewable energy credits that matches the energy used by their servers. Blockchain is currently being used in reducing environmental impacts in various industries across the world and companies are increasingly embracing the technology.