Blockchain is still a popular issue, and organizations are using it more often as a safe, efficient means to conduct transactions and transfers. There is a growing understanding of the potential effects that blockchain technology may have on the environment as new applications and platforms emerge as technology advances.
While blockchain has received a lot of criticism for its lack of sustainability, notably for its energy-intensive “proof-of-work” mechanism, it does have the potential to have a positive effect on the environment. Blockchain technology has the potential to promote the adoption of more resource-conserving, decentralized solutions if used effectively. It can free up natural capital and give communities more clout in the process.
We have seen a number of breakthroughs across Europe that use blockchain technology to genuinely cure and improve the planet. Startups are, of course, at the forefront of these advances. A “proof-of-stake” technique, which requires less energy to confirm transactions, has been implemented by Ethereum. In an effort to become one of the most energy-efficient blockchains, Polygon, a Layer 2 platform that is expanding Ethereum, has promised to put aside $20 million for environmental initiatives.
Blockchain technology is finding inventive uses across many sectors, from financial services to creative industries. It should come as no surprise that ideas that improve our climate and sustainability have not been left out of the blockchain frenzy given that almost no industry has been left behind.
How blockchain can benefit the planet
We discovered that the majority of blockchain-based climate tech businesses are geared at improving trade in voluntary carbon markets. There is more activity in the carbon markets than ever before as more businesses commit to working toward net zero. The market for carbon credits may be worth $50 billion or more by 2030.
Trading in the carbon markets has always been opaque and ineffective. A broker is engaged in the transaction and charges a significant margin to trade carbon credits and carbon offsets. Other issues with the conventional carbon market include the great potential for greenwashing and double counting carbon credits as a result of a dearth of trustworthy data.
Since data is unchangeable, placing carbon markets onto chains increases transparency. Startups are utilizing blockchain in the circular economy and releasing sustainable assets that may be used as collateral or NFTs, in addition to using it to reinvent carbon markets to benefit sustainability.
These European firms are utilizing the blockchain to promote greater transparency and real sustainability.
Single.Earth
Single.Earth making conservation economical for all sizes of landowners is part of Earth’s objective to aid in the preservation of already existent systems. The goal is to make preserving forests as economical as destroying them. On this platform, landowners receive a token based on the ecological worth of their property for every 100 kg of CO2 that their woods, wetlands, or other natural resources successfully absorb. They were started in 2019, have an Estonian basis in Tallinn, and have so far received €8.1 million, the most recent being their seed round, which was joined by Icebreaker.VC and was headed by EQT. At this year’s EU Startups Summit, founder and CEO Merit Valdsalu provided some intriguing insights on how they are tokenizing the environment and building a sustainable economy based on nature.
JustCarbon
The carbon credit market is being introduced to the blockchain by JustCarbon. In order to lower prices and do away with intermediaries, they created a blockchain-based carbon credit trading platform, which in turn created a market for natural carbon removal. JustCarbon tokens, also known as JustCarbon Removal Units, are available for purchase by users (referred to as JCRs). 1 JCR is equal to 1 tonne of carbon sequestered and verified in accordance with the platform’s governance guidelines, which are overseen by JustCarbon’s DAO. The DAO is under the control of token holders for JustCarbon Governance. London-based blockchain and climate professionals make up the JustCarbon team.
Senken
Senken is the first public market in the world that allows anybody to compare, purchase, exchange, and retire on-chain carbon credits. It makes voluntary carbon offsetting as simple and user-friendly as possible, opening up the market. Due to the fact that their tokens are kept in a distributed database that is decentralized and irreversible, they are on a mission to address the voluntary carbon market’s issues with trust and transparency. Their portal also offers comprehensive details about each climate project, including information on their carbon rating (driven by BeZero) and the vintage of a carbon offset, to assist users in picking a project with knowledge. In 2022, Senken was established in Berlin.
