IBM announced a partnership with Veridium Labs on Tuesday via a press release shared with Cointelegraph. The two companies plan to tokenize carbon credits, allowing companies to track their carbon footprints with blockchain technology.
The CEO of Veridium, says that the new partnership "not only transforms the carbon markets, but also creates an economically sustainable funding source for conservation through a results-based payments model - a good first step towards the new 'regenerative economy.’”
The Veridium-issued digital tokens, will be available on the Stellar blockchain and backed by environmental assets such as the Triple Gold REDD+ credits from InfiniteEARTH.
The vision behind the carbon credit idea is to facilitate positive change for the environment by using market forces to dictate how much pollution companies produce. These credits, which companies will be able to buy, will function as tradable permits of sorts, each worth a set amount of carbon.