Can blockchain technology help with carbon offsets?
As companies face the challenges of meeting greenhouse gas emission targets, blockchain technology may offer a solution in realizing new carbon offsets.
“Currently there is no simple answer to the question that many global companies are asking, which is, how do we become a carbon neutral business?”, says Paul Ghezzi, CEO of Kontrol Energy. “Following the Paris Climate Accord, numerous organizations have announced their intention to be carbon neutral by 2050. That’s why we are working on an efficient, timely and cost-effective solution to be rolled out in 2018. Through blockchain technology we will seek to facilitate a transparent carbon measurement and carbon offset market.”
A carbon offset is a credit for greenhouse gas reductions achieved by one party that can be purchased and used to compensate (offset) the emissions of another party. Carbon offsets are typically measured in tons of CO2-equivalents and are bought and sold through various international brokers and trading platforms. These transaction platforms are generally not transparent, liquid or efficient.
Without a universal ledger it is difficult for any organization to measure how much carbon they have both emitted and offset. This is where blockchain technology can facilitate a unique solution which is data-driven, allows verification of multiple approval steps and exists separately from the environmental benefits to which they correspond. In a world in which carbon emissions and offsets are tracked transparently and reliably, organizations will be able to better mitigate their carbon impact in real-time.
“Through blockchain technology we will create a platform where companies can measure and verify their carbon emissions and carbon offsets,” says Ghezzi. “Further we will provide our customers with the capability to build their own carbon offset projects and create their own unique loyalty program tied to the acceleration and achievement of their corporate sustainability goals.”
Kontrol has launched a new operating brand, NetZero World Inc. and is reviewing various potential operating acquisitions of blockchain technology companies as it continues to progress on its blockchain development program.