CarbonX and ConsenSys Put P2P Carbon Credit Trading on the Blockchain
Carbon credits trading (also known as “cap and trade”) as a means to help mitigate the effects of global climate change has long been advocated by environmentalists fighting one of the most intransigent environmental challenges of the 21st century.
Now ConsenSys and CarbonX Personal Carbon Trading Inc. have stepped up to enable the first-ever peer-to-peer carbon credit trading platform, built on the Ethereum blockchain.
CarbonX Personal Carbon Trading Inc. is principally a Tapscott family enterprise, with CEO and founder William (Bill) Tapscott, co-founder and CMO Jane Ricciardelli, chair of the board of directors Don Tapscott, and director and board member Alex Tapscott.
Bill Tapscott is a software engineer who has founded and co-founded a number of tech startups including IntelliOne, a cell phone geo-location and traffic data processing company; Maptuit, a navigation and optimization software company in transportation logistics; and Mountain Lake Software, a custom software development company with a strong financial services practice.
Tapscott told Bitcoin Magazine:
“My interest in carbon trading and clean technologies was piqued by being on the Investment Committee of the Toronto Atmospheric Fund, a City of Toronto venture fund with a mandate to develop greenhouse gas reduction projects and companies.
“CarbonX will engage millions of people in fighting climate change by materially rewarding responsible behaviors toward the personal consumption of carbon. CarbonX will achieve this by investing in carbon reduction projects and re-casting generated offsets as ERC20 tokens on an Ethereum Blockchain.
“CarbonX’s ultimate goal is to become the global exchange for peer-to-peer personal carbon trading.”
Don Tapscott, chair of the CarbonX board of directors said in a post:
“... climate change is arguably the world’s most daunting challenge. Virtually every scientist now agrees that the debate is over. Rising average surface temperatures combined with rapidly expanding deserts, melting Arctic sea ice caps and ocean acidification now provide unequivocal evidence that human activities are fundamentally altering the Earth’s climate.”
ConsenSys was one of the first startups to build practical applications for the Ethereum blockchain. Their mission is to create simplified and automated decentralized applications (dApps) to facilitate peer-to-peer transactions and exchanges, principally on the Ethereum blockchain.
In a statement, ConsenSys founder and Ethereum co-founder Joseph Lubin said:
“As one of the fastest growing companies working on Ethereum, a platform that is poised to reformat how the world organizes itself, ConsenSys is committed to enabling technologies to be built that will facilitate attention to externalities like pollution and critical new foundations like sustainability.
“CarbonX has the potential to incentivize behavior that contributes to environmental sustainability, and is an excellent example of Ethereum-based technologies poised to make positive change,” added Lubin.
The CarbonX Token CxT
The CarbonX initiative will buy carbon credits from environmentally sustainable practices like ridesharing and will invest in carbon reduction projects like tree planting and convert this value to Ethereum ERC20 tokens known as CxT tokens.
CarbonX will be announcing a formal token launch in the near future. CxT tokens will be distributed through an open-loop-style loyalty rewards program. The CxTs will then be tradeable on the CarbonX platform and be able to be exchanged for carbon-friendly goods and services, other reward program points or other digital currencies.
For verification, CarbonX will use industry-standard carbon offsets like the REDD and VCS offsets (for example, to apply to ridesharing) and will convert these into CxT tokens.
Investments in carbon reduction projects that will generate offsets will use government protocols, such as those developed by the Ontario provincial government, for example.
“The CxTs will be awarded by enterprises who encourage ridesharing, and brands/retailers who wish to feature products that are carbon-friendly. We will provide guidelines, and consumers/users will be able to track overall performance. In the example of rideshare, we plan to work with companies like Luum and their clients to incent carbon-friendly behaviors. There are many ways we can boost awareness and responsibility for personal action in the fight,” explained Tapscott.
Well-known environmentalist Richard Sandor, chair and CEO of Environmental Financial Products and founder of the Chicago Climate Exchange, has endorsed the CarbonX initiative, saying:
“Blockchain technology has the potential to further expand the applications of market-based mechanisms to help solve environmental concerns. I am pleased to support CarbonX as another positive step towards transparency, accountability and lower transaction costs.”