Rarely a day goes by without reports of a major weather event and broken climatological records. Whether this involves bushfires in Australia, flash flooding in the Mediterranean, drought in Africa or hurricanes in the Caribbean, there is little doubt we need to take climate change seriously.
Yet as governments around the world try to grasp the problem energy consumption remains high. It is challenging to stop and reverse trends that have been developing for decades.
“When carbon credits are tokenised they can be converted into tradable assets that are similar to traditional commodities. It takes advantage of blockchain technology so that the tokens can be issued, distributed and priced in a secure and transparent manner.”
While scientists look for answers big businesses are being encouraged to reduce carbon emissions through incentivisation. As this process unfolds further innovation in the blockchain and crypto industries will offer even more incentives to climate-focused corporations.
So how can tokenisation help to make carbon credits more attractive?