Computer giant IBM has signed a partnership agreement with FINTECH startup Labs Veridium for token issuance Verde on the blockchain Stellar.
The initiative aims to tokenization trade unused quotas on carbon emissions. Thus, the companies producing the emissions and causing damage to the environment, can offset this through the purchase of tokens, the income from the sale of which will go to the restoration of 250 square miles of tropical forest on the island of Borneo in Indonesia.
Selling quotas on carbon emissions has been around for quite a long time, but they are difficult to assess and to adhere to the traditional balance. Token Verde will trade in the public network Stellar, eliminating obstacles and opacity in the trading chain emissions.
“For many years we tried to develop an algorithm to determine the cost of carbon emissions, but previous solutions were associated with significant complexities and costs. With the help of our digital environmental assets of the company and the institutional investors will be able to purchase and apply the unused quota of carbon emissions to mitigate the impact on the environment. In addition, they can hedge their potential risks of liability for damages in the future,” said co-founder and CEO of Veridium Todd Lemons (Todd Lemons).
«Using public blockchain, we can help Veridium to create a new sustainable market, which will be good for business and for the world,» said Bridget van Kralingen (Bridget van Kralingen) — senior Vice President of IBM’s industry platforms and blockchain.
It is noteworthy that this initiative is not only a proof of concept or pilot program. In addition, tokens will be available for purchase only by the companies concerned.