All the life and living things are sustaining on the earth because of the good environment and it is our responsibility to protect the environment for the future generation. With the global economy rapidly expanding, many fear that growth and sustainability will come into conflict as more and more natural resources are needed to fuel it.
Global leaders signed the Paris agreement for climate change. https://www.weforum.org/agenda/2016/09/what-is-the-paris-agreement-on-climate-change/
codified the pressure on countries to reduce their emissions and companies are increasingly under the same spotlight from investors, shareholders, employees, and customers to reduce their carbon footprint.
What are carbon credit and carbon offsets?
The Kyoto Protocol introduced the concept of Carbon credit https://en.wikipedia.org/wiki/Kyoto_Protocol
A carbon credit is a generic term for any tradable certificate or permits representing the right to emit one tonne of carbon dioxide or the mass of another greenhouse gas with a carbon dioxide equivalent (tCO2e) equivalent to one tonne of carbon dioxide.
Carbon offsetting refers to activities which reduce greenhouse gas emissions. This is undertaken as a way to earn carbon credits. Carbon offsetting, therefore, includes renewable energy projects such as wind or solar, burning of methane gas or destruction of industrial pollutants.
Carbon offsetting efforts can be part of the same Kyoto Protocol regulated market as carbon credits, or alternatively, they can be voluntary. To qualify for participation in the regulated market, the offsetting project must take place in a Kyoto-Protocol member country, and be government-sanctioned
Blockchain for carbon credit and carbon offset:
Blockchain can now enable the tokenization of assets, including real-world physical assets. The token is backed by carbon assets that can be verified by third parties as meeting international standards. Incentivizing the adoption of carbon offset in business though issuing tokens, calculates the number of carbon credits that a company needs to buy or generate to provide enough carbon offsetting for its footprint.
Business reduces there carbon offset and sells offsets to other companies in need for a higher price, global carbon marketplace starting with the integration of carbon credits into everyday retail purchases. reduction of emission can be incentivized.
There are the few examples. I appreciate others to add new ideas to use Blockchain to address real-world problems.