New solutions roll out for companies looking to offset their carbon footprint

There is a growing awareness around the globe that recognizes the need to address the climate challenge. With no easy solutions, it will take a combined effort by governments, companies, and individuals to reduce carbon footprints across all sectors. This week, the New Zealand government declared a climate crisis with prime minister Jacinda Ardern stating that climate change is “one of the greatest challenges of our time” and pledging a carbon-neutral government by 2025.

According to the World Bank, in 2020, humanity compensates for just 22% of global emissions through the purchase of carbon credits, and yet the proportion of countries operating regulated carbon markets has risen from 40 percent of global GDP in 2016 to 70 percent in 2020. The result is that new demand may soon outstrip the production of new carbon credits.

Climatetrade builds on Algorand

Climatetrade, the blockchain-based marketplace for CO2 carbon offsetting, has selected the Algorand blockchain network as its primary infrastructure layer. Climatetrade raised €1Million in a seed round led by Borderless Capital. The funds will support the company’s strategic plan and expansion goals.

Based in Spain, Climatetrade’s mission is to help companies achieve their sustainability goals, and eventually carbon neutrality by offering them carbon offsetting services and the ability to finance climate projects. Climatetrade has just launched an API that allows its users to purchase carbon-neutral products and services from the different companies in its blockchain marketplace.

Climatetrade users have access to a marketplace where they can directly offset their carbon footprint by selecting carbon credits, along with a record of all their transactions in a private dashboard. Climatetrade users include corporations such as Iberia, Melià Hotels, Cabify, and Telefónica. The benefits of using a blockchain-based solution is the increased transparency, access, and traceability that a blockchain provides.

W. Sean Ford, COO of Algorand, says that Climatetrade’s usage of Algorand to underpin a global marketplace for carbon offsetting represents a shift in how organizations can achieve carbon neutrality. "By making carbon offsetting more easily accessible and efficient, Climatetrade is poised to make a positive environmental impact through its network, all with blockchain."

Borderless Capital invests capital and builds financial products to accelerate the adoption of the Algorand borderless economy. Borderless Capital’s capital raise for Climatetrade will allow the company to access new markets in the United States. Climatetrade now plans to open an office in Silicon Valley to provide its solutions to American companies seeking to offset their CO2 emissions.

The Universal Carbon token

Earlier this week, The Universal Protocol Alliance (UPA), a coalition of blockchain companies including Bittrex Global, Ledger, Certik, Infinigold, and Uphold, launched Universal Carbon (UPCO2), a tradable carbon token that can be bought as an investment, or burnt to offset an individual’s carbon footprint. Universal Protocol Alliance’s vision is that every asset class will be digitized and tokenized. The alliance of blockchain companies is building a tokenization platform to achieve this.

As the global demand for carbon credits grows, solutions such as ClimateTrade and the UPCO2 Token will provide access to this new asset class. Eventually, this could lead to the establishment of a global clearing price for carbon (similar to commodities as oil and gold).

Each UPCO2 Token represents one year-ton of CO2 pollution credited by a certified REDD+ project preventing rainforest loss or degradation. Every token is backed by a Voluntary Carbon Unit, VCU, a digital certificate issued by Verra, the international standards agency, which allows certified projects to turn their greenhouse gas (GHG) reductions into tradable carbon credits.

“The projects we support through carbon credit purchases prevent deforestation in the Amazon, Congo Basin and Indonesia as well as other threatened rainforests,” said UP Alliance Chairman, Matthew Le Merle. “For a new generation of investors looking for more than mere financial return, UPCO2 offers attractive social, economic, and environmental benefits. At a key moment for climate change, UPCO2 allows people worldwide to do good for the planet.”