Another project begins to make use of blockchain technology for sustainability: crypto prime broker SFOX and Universal Protocol Alliance (UPA) are coming together to make a carbon credit token globally accessible.
Universal Carbon (UPCO2) is marketed as the world’s first tradeable REDD+ (reducing emissions from deforestation and forest degradation in developing countries) carbon credit token. As crypto broker Uphold explained in December, UPCO2 “democratises access to millennials… 90% [of whom] now cite impact investing as their top strategy with climate change as the most important theme.”
Every token is backed by a verified carbon unit (VCU), a digital certificate issued by Verra among other international standards agencies. The goal is to allow certified projects to turn their greenhouse gas reductions into tradable carbon credits. UPCO2 allows people to buy, hold and sell tokenised carbon credits, with users also able to burn credits to offset their carbon footprint.
“From the world’s leading governments and international organisations, to financial institutions and large corporations, there is an understanding that we must make effective markets for carbon credits,” said Matthew Le Merle, chairman of UPA and vice chairman of SFOX. “However, for most of the world’s eight billion people, there is no easy way for them to demonstrate their own personal commitment to make their carbon footprints neutral. This is what we are partnering to solve now.”
Various projects exist to help utilise blockchain technologies for social good. Last month this publication reported on GoodDollar, a project led by eToro CEO Yoni Assia which aims to deliver digital universal basic income (UBI) at scale. More than 40,000 people have to date signed up and used the G$ digital currency.
SFOX and UPA added a long-term aim was to ‘establish a global clearing price for carbon’, similar to that for oil and gold, with more resources going directly into environmental projects.
Photo by Pika Alyani on Unsplash
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With UpCO2 are there a finite number of tokens? Or will the number of tokens increase as more and more projects are accredited?
If the second situation is correct, will the value of tokens be dependent on whether there is a limited supply against an increasing demand?