What happens when you put carbon credits on a blockchain?
Other tokens have turned to blockchains that use a different system that uses vastly less energy. But this all goes to show that trying to solve climate change through these kinds of techno-fixes is dicey business, with plenty of pitfalls to avoid.
“If cryptocurrencies are buying up poor quality credits and tokenizing them and creating value out of them, that seems really problematic to me,” says Barbara Haya, director of the Berkeley Carbon Trading Project. “You don’t want to create value out of things that are based on false claims about carbon impact.
. Offsetting is “not yet a credible climate solution at all,” Haya says, and the overall quality of offsets hasn’t really improved over time.There are a lot of companies that are trying to sell crypto as a climate solution. Back in October, a blockchain project called Toucan and a called KlimaDAO released a new token. It’s called Base Carbon Tonne , and it represents carbon offset credits that have been moved from a traditional carbon registry onto a blockchain.
Toucan’s first effort to bring carbon credits on-chain picked up steam fast. After a few months, about a quarter of all the credits on the world’s largest registry had been moved on-chain using Toucan’s platform. But its popularity didn’t necessarily translate into success when it comes to reducing planet-heating pollution.
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