Despite the potential of blockchain as a tool in the fight against climate change, the quality of carbon credits is far from homogenous. Within the last week, multiple public blockchain projects have been criticized for the quality of the carbon credits used. Thomson Reuters called into question the Moss crypto carbon credits, and CarbonPlan repeated its criticism of the carbon assets used by KlimaDAO‘s crypto tokens and the Toucan Protocol. KlimaDAO spent more than $1 million in treasury funds retiring the lowest quality ones.
What’s particularly unfortunate is that these are perceived as the higher quality carbon blockchain projects, whereas some others are borderline scams.
In May, the Verra carbon registry and standards body suspended the tokenization of the carbon credits in its registry and subsequently launched a consultation.
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