A Crypto Company Thinks It Can Help Fight Climate Change

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Toucan is leveraging blockchain to reinvent the carbon credit market. But thorny questions abound.

To understand what that means you have to start with the voluntary carbon offsetting market. The logic behind it is quite simple. While companies and individuals need to reduce how many carbon emissions they produce, in the short-term at least there will always be a certain amount they won’t be able to get rid of straight away.

For one, the traditional carbon credit registries themselves. One of the largest, Veera, recently issued several statements criticizing the movement and even suggesting that the anonymity provided by blockchain could lead to projects being used to launder money. Claudia Herbert, a PhD candidate at UC Berkeley and a specialist on the crossover between blockchain and carbon offsetting, cites the issue of offsets of HFC-23.

 

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