Tech start-up, IBM partner to turn carbon credits into Blockchain-based tokens

Veridium, a tech start-up focused on environmental preservation, has partnered with IBM to transform carbon credits into blockchain-based tokens. This innovative approach aims to streamline the trading of carbon credits and make it more accessible to companies looking to offset their environmental impacts. Jim Procanik, Executive Director of Veridium Foundation, recently sat down with CNBC Africa to discuss the partnership and its potential impact. Procanik highlighted the significance of the collaboration with IBM, leveraging their expertise in the Hyperledger fabric blockchain to create a more efficient solution for enterprises in various industries. By tokenizing carbon offsets, Veridium and IBM are providing a simple and transparent way for companies to account for and trade environmental credits. One of the key differences in Veridium's approach is the focus on developing countries that are prone to deforestation and forest degradation. Procanik shared that Veridium is actively purchasing credits from projects in Africa, including Kenya and the Democratic Republic of Congo, to support conservation efforts in these regions. Procanik emphasized the critical role of carbon credits in addressing deforestation, which is a leading cause of carbon emissions. By providing an alternative source of funding through tokenized offsets, Veridium aims to significantly impact forest conservation and reduce carbon emissions in these vulnerable areas. When asked about the investment in these projects, Procanik explained that the tokens are backed by purchased carbon credits, creating a sustainable funding model for ongoing conservation efforts. The initial investment is already making a substantial impact, with plans for exponential growth in the future. In terms of pricing, Procanik mentioned Veridium's dual token model, which includes a carbon token and an access token for accounting functions. The combined package is priced at around $10, reflecting the current market value of carbon credits. Procanik also addressed the challenge of changing population perceptions and behaviors related to deforestation for timber and fuel. He explained that initiatives like REDD (Reducing Emissions from Deforestation and Forest Degradation) focus on creating economic alternatives for local communities, incentivizing them to protect forests and adopt sustainable practices. Overall, the partnership between Veridium and IBM represents a significant step forward in leveraging blockchain technology for environmental conservation. By making carbon credits more accessible and tradable, this collaboration has the potential to drive meaningful change in the fight against deforestation and climate change.