Blockchain technology is quickly emerging as a vital tool in tackling critical environmental and social issues. IBM recently touted the technology’s potential address challenges along the global food supply chain and is working with partners to identify new areas where it can in positively impact food traceability. A new partnership between Sourcemap and Provenance has also demonstrated how blockchain can help improve upon inefficiencies and unsustainable and unethical practices throughout the food and fashion industries. Now, Poseidon, a nonprofit, is creating a carbon currency using the technology that will allow businesses to measure the carbon footprint of transactions in real terms.
Kate Dillon Levin
Carbon Finance Schemes
New Metrics '17.****Every financial transaction has consequences for the environment — whether positive or negative — but these impacts and their costs are hidden. Poseidon will uncover these carbon consequences by enabling a carbon value to be added directly into everyday products. In addition to supporting companies in their efforts to reduce their carbon emissions, the technology will enable consumers to participate through small everyday micro-transactions.
“There is significant scope for companies to capitalize on the increasing demands of their consumers, investors and employees to demonstrate sustainability, responsible supply chains and positive environmental action,” said Laszlo Giricz, founder of Poseidon. “As momentum builds, Poseidon’s blockchain technology presents an opportunity for early involvement in a transparent, accountable carbon market that can provide both financial and ecological returns, offering a host of benefits to natural ecosystems and the habitats and livelihoods they support.”
Using Stellar’s blockchain technology, Poseidon will simplify the carbon credit market by preventing the double counting of carbon and providing consistency across jurisdictions. Poseidon and its partners will also allow consumers to purchase ‘climate-positive’ products through smart contracts and custom tokens on the Stellar blockchain. Additionally, the digital ecosystem will enable governments and companies to measure, track and trade emissions transparently, redefining the way they manage their regulatory compliance.
Early next year, Poseidon will begin sourcing carbon credits through Ecosphere+, a venture which finances a range of high-quality environmental assets around the globe, including vulnerable ecological zones, such as Brail, Guatemala and Peru. Poseidon will also create a mobile app which enables both businesses and consumers to see the impact their carbon positive purchases are having on the ground.