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digital daily: Climate Meets Crypto

Climate Meets Crypto: Climate markets are emerging. Issuance and retirements of voluntary carbon markets are running 110 Metric tons of carbon dioxide equivalent (MTCO2e) in the first quarter, up 4-times from five years ago. For context, 110 MTCO2e is the equivalent of the annual energy consumption of 10 million US homes or 7% of the total US housing stock. And this is just the beginning. The pathway to 2050 net zero emissions would see voluntary carbon credits rise by 15-times through 2030 and 100-fold through 2050 on a benchmark study. Whether you believe in this or not is a separate matter. Structure is building around voluntary carbon markets, defining core principles and coordinating with swap dealers and securities commissioners. Blockchain technologies are also a rising part of the equation. “When you zoom out and look at all the new technologies coming online — AI, machine learning, remote sensors, blockchain, the list goes on — there’s just an incredible potential for unlocking new capital flows into verifiable climate action at scale,” observed the CEO of the Climate Collective. Beginning with the Ethereum Climate Platform that featured prominently in COP27, attention on blockchain solutions for the carbon market are being showcased by the World Economic Forum. What is one of the top challenges shared by climate industry experts? The lack of regulatory clarity. What better unlock for crypto’s regulatory challenges than parallel progress on climate policy – add COP28 to your bingo card. 

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