3min chapter

Behind the Money cover image

Blockchain seeks a role in fighting climate change

Behind the Money

CHAPTER

Tokenization of Carbon Credits

block chain companies are taking a whole range of different offsets and converting them into the same standardized digital token. So in traditional offset space, you might have ten different looking credits, and in the digital space, all those ten credits might turn into the same one token. And so it means they're interchangeable, which is great if you're less bothered about which forest your credit actually came from. It's easier to trade the credits because there are lots of them that all look the same and they're all worth the same thing. In reality, the buyers of credits often want to know which project their credit came from. Big corporate buyers like to be able to tell a story.

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