- Blockchain revolutionizes the carbon trading industry.
- Phaeton Blockchain, AirCarbon, Carbonex-Carbon Exchange Platform, First Carbon Corp and Energy Blockchain Labs are the five blockchain firms that revolutionized the carbon industry.
The purpose of applying blockchain technology to the energy industry is to provide fully decentralized energy. A system that allows direct communication between producers and consumers. Blockchain technology helps enhance the Market impact of individual consumers and manufacturers. This gives consumers a high degree of autonomy. With direct energy transactions. In addition to energy supply transactions, blockchain technology can also be used for Measurement and billing.
Many features of the carbon trading market are very similar to blockchain mechanics. The essence of the blockchain is a distributed database. At the core of carbon, trade is to assess, store, trade, and manage carbon emissions. A blockchain is a form of data existence, and carbon trading is the use of data. In this article, we will look at top-5 blockchain firms that have revolutionized the carbon trading industry.
1. Phaeton Blockchain
Phaeton has established a DeFi model in line with the spirit and ESG mission. These models include carbon credit exchanges and ESG bond exchanges. Each of these exchanges allows Phaeton to promote and fund internal projects while at the same time providing third parties with the opportunity to launch projects. In addition to these exchanges, Phaeton has several staking nodes that provide passive revenue through the implementation of the data center. In these models, Phaeton’s business goal is to generate cash flow through transaction fees and passive income that ultimately benefit shareholders and token holders.
Current CO2 emissions are estimated at 55 billion tons per year. Even if we reduce that number to zero over the next decade, estimates place the impact of long-term warming between 1.5 and 2°C. This will have dire consequences. such as sea-level change, food production, and public health. The rate of increase in emissions far exceeds the rate at which we can introduce incentives to reduce emissions. Globally, the ability to generate viable carbon credits is 25% lower than the current annual pollution levels, and it is decades behind. To alleviate this problem, Phaeton has partnered with carbon credit industry experts and a corporate accounting team to set up a carbon credit exchange where the public can trade NFTs of carbon credits.
Singapore-based startup AirCarbon is developing a blockchain-based carbon trading platform. Each eligible AirCarbon CORSIA token (CET) is backed by one ton of carbon dioxide equivalent. Startup tokens comply with CORSIA (Carbon Compensation and Reduction Scheme for International Aviation). It also offers tokens for carbon credits related to wetlands, grasslands, forestry, and agriculture.
Existing emission trading mechanisms rely on government agencies and a centralized emission trading system (ETS). However, these limits offset projects to specific geographic regions as many countries do not have ETS. Using blockchain, startups are turning carbon credits into a class of tradable carbon assets. This allows decentralization and use of the typical exchange architecture of traditional commodities such as corn or crude oil.
3. Carbonex-Carbon Exchange Platform
UK startup Carbonex is developing a global carbon exchange platform. By converting carbon credits into CBN coins, companies can trade with existing currencies. The startup also plans to embed carbon credit tokens into smart contracts. This startup’s solution helps businesses face the threat of global climate change. Carbon credits allow businesses to balance greenhouse gas (GHG) emissions with carbon offset projects anywhere in the world. However, there is no standardized way to certify carbon credits. Because of the security, immutability, and traceability of blockchain technology, startups are using it to leverage these capabilities for carbon credits.
4. First Carbon Corp
First Carbon pioneered the use of NFTs to digitize and trade tokenized allowances, providing transparency and liquidity to the global carbon offset market. The purpose of the new proprietary decentralized platform is to enable offset trading on existing tokenized exchanges. NFT. First Carbon works on the Proof of Stake blockchain, which connects Ethereum-compatible blockchain networks to create a multi-chain Ethereum ecosystem.
It provides liquidity to the carbon market through a decentralized platform that uses blockchain technology to formalize offset transactions on tokenized exchanges. First Carbon provides an innovative solution to this problem through a unique approach to developing a standardized credit market for first carbon credits. First Carbon helps bring historically underfunded green businesses and projects to market by providing a solid foundation to easily increase capital flows for carbon reduction initiatives. Built on the Ethereum network, the decentralized exchange technology leverages the DeFi world with unprecedented benefits.
5. Energy Blockchain Labs
Working with IBM Energy Blockchain Labs, we have created a carbon asset development platform that will make it easier for organizations to meet their government-mandated CER quotas. IBM Blockchain technology is the foundation for providing a shared, immutable distributed ledger that bridges the data gap between the green economy and finance. So far, Energy Blockchain Labs has collected over 200 methodologies for developing carbon assets into smart contracts. A smart contract is a blockchain feature that automates the calculation of quotas for companies that need to reduce their emissions.
Energy Blockchain Labs combines a carbon asset development registry with a broader general-purpose distributed ledger powered by IBM Blockchain technology to record and quantify the environmental impact of member energy production and consumption activities. It helps to store this information securely. We provide transparency to all stakeholders. As a result, participants can easily track their carbon footprint and better understand when to buy and sell in the carbon asset market. Regulators will find it easier to track credit progress to help participants meet their carbon reduction goals.
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