The carbon credit market is facing challenges that hinder its effectiveness in supporting carbon reduction and climate change mitigation goals. Inconsistent definitions of carbon credits, limited disclosure of emissions reductions, and incomplete data on origin and quality are issues that reduce confidence in the market and slow progress towards achieving ESG goals.
Blockchain can provide a solution to these challenges by creating a secure and transparent ledger that offers asset-grade data on the quality and origin of carbon credits. This will lead to a standardized and trustworthy market that incentivizes sustainable practices and supports the transition to a low-carbon economy