on the crypto
Stablecoin pioneer Uphold claims to have launched the first retail tradable carbon token.
Offset the carbon footprint thanks to the blockchain
The Universal Protocol Alliance, a coalition of blockchain companies led by Uphold, which includes Bittrex Global, Ledger, Certik and Infinigold, announced the Universal Carbon (UPCO2) token on Tuesday.
Each blockchain-based UPCO2 token represents a certified measurement of carbon dioxide. They can be bought and held like investment or burned to offset the carbon footprint of a company or individual, the group said.
The now widely used term “carbon credits” can refer both to credits issued and traded on regulated markets, and to a voluntary carbon offsetting activity in which credits are used for tree planting projects, for example. Blockchain technology has been touted as a way to prevent double counting (or double spending) of carbon credits across all areas and markets.
The world's first case of tradable carbon credit tokens
Uphold is beginning tokenizing voluntary carbon credits, specifically REDD credits which are high quality, easy to understand, and make up about 58% of the voluntary carbon market, explained JP Thieriot, co-founder of UP Alliance and CEO of Uphold. .
Each UPCO2 token represents one tonne / year of CO2 pollution avoided thanks to a certified REDD + project that prevents the destruction or degradation of the rainforest, he said.
Based on the Ethereum ERC-20 standard, the tokens are supported by a Voluntary Carbon Unit (VCU), a digital certificate issued by the international agency Verra, which allows certified projects to transform their greenhouse gas (GHG) reductions into credits of negotiable carbon.
Today, the retail market for voluntary carbon credits - via sites like TerraPass or Cool Effect - allows access, but not holding or trading. “We are the first people in the world to make these credits retail accessible and custodian,” Thieriot said in an interview.
The goal is to get carbon credits to any exchange in the world
Voluntary carbon offsetting is also interesting for companies like Amazon, Microsoft and Nike, said Thieriot, who no longer plans to wait for governments to take the initiative to neutralize their current carbon footprint, or even their entire footprint. historical.
Meanwhile, according to the World Bank, demand for carbon credits is expected to outstrip supply by a factor of four to one in 2020. And a change in the political climate in the US looks likely, with President-elect Joe Biden announcing an administration focused on climate change.
UPCO2 tokens must undergo a "cure process", which is equivalent to a primary issue, said Thieriot, under which they will be made available from today on the Uphold platform. “It will initially be available on Uphold for around 4-6 weeks, then Bittrex Global will upload it too,” said Thieriot. "And then we would like every exchange in the world to offer it."
