Two companies, Likvidi and JustCarbon have announced that they have launched trading platforms which offer tokenized credits for carbon offsets. This is to enable participants a way to lower their carbon footprint by trading greenhouse emissions.
JustCarbon’s marketplace for JCRs or carbon removal units has just opened, according to a spokesman on March 10th. Likvidi’s platform is called LCO2 or Liquid Carbon Credit. Both the JCR and LCO2 are a blockchain version of the carbon credit issued by a company called Verra (symbol – VCS). Every JCR represents credits issued by the Gold Standard and equivalent to a metric ton of carbon.
Both of these companies are part of a growing number of institutions looking into how blockchain tech can and should be used to boost environmental management. For example, China introduced a trading system for carbon in the summer of 2021. Cambridge University also announced that it was working on something similar, at the end of 2021. The Cambridge project is supposed to support projects to do with reforestation and bio-diversity preservation.
According to Likvidi’s CEO, the world is facing a big challenge of reducing CO2 emissions. It has to be a joint effort with governments. JustCarbon wants to build a transparent marketplace with nature at its center. This model will work in sequestering carbon effectively. The goal is to bring this kind of technology and opportunity to small companies too, so that they can offset emissions of greenhouse gases.
The JustCarbon platform administration will be handled by a DAO to prevent vested interests and ensuring that a single entity doesn’t control it. JustCarbon has tied up with NFT Design Works to offer NFTs for carbon offsets. Likvidi is working with a DAO Maker and its platform will work on Avalanche.