In May, Verra, the Washington-based non-profit body that sets voluntary carbon credit standards, put restrictions on the tokenization of carbon credits. Today Verra launched a consultation that runs until October 2, with proposals on how blockchain tokenization could work. Its goal is to address fraud, double spending of carbon credits, and a lack of know-your-client (KYC) processes in the crypto sector.
The Toucan Protocol was launched in late 2021, and by May this year, it had tokenized 21 million tonnes of carbon, estimated to represent 2.25% of total credits. Several other blockchain initiatives are based on Toucan tokens. When Toucan became aware of the planned consultation, but before the details were announced, it was receptive.
“We welcome the opportunity to contribute to a productive dialogue that leads to a clear strategy on how we can work with Verra to make this a reality,” reads a Toucan blog post. “We encourage openness and speed in this process in order to ensure that all market actors can engage in and benefit from ongoing innovation in the space.” Verra banned the manner in which Toucan tokenized credits in May.
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