On September 21, 2017, blockchain software company ConsenSys announced the launch of a peer-to-peer (P2P) trading company, CarbonX, which will employ the Ethereum blockchain to tokenize carbon credits.
CarbonX is backed by a co-founding group that includes co-authors of best-selling book Blockchain Revolution: How the Technology Behind Bitcoin Is Changing Money, Business, and the World, Don and Alex Tapscott. The company intends to purchase Certified Emission Reduction Credits, also called carbon credits, to be tokenized with the Ethereum blockchain. CarbonX will also tokenize investments it makes in reduction projects. It plans to name the ERC20 tokens “CarbonX Tokens (CxTs)” and distribute them through an “open-loop loyalty rewards program” to enterprises that may, in turn, offer CxTs to customers as an incentive to engage in eco-friendly practices.
Founder of ConsenSys Joseph Lubin provided insight on the endeavor.
“As one of the fastest growing companies working on Ethereum, a platform that is poised to reformat how the world organizes itself, ConsenSys is committed to enabling technologies to be built that will facilitate attention to externalities like pollution and critical new foundations like sustainability. CarbonX has the potential to incentivize behavior that contributes to environmental sustainability, and is an excellent example of Ethereum-based technologies poised to make positive change.”
Advisor to CarbonX Dr. Richard Sandor, dubbed by Time Magazine as the “Father of Carbon Trading,” expressed the sentiment that blockchain may be availed to quell ecological issues. “Blockchain technology has the potential to further expand the applications of market-based mechanisms to help solve environmental concerns,” said Dr. Sandor. “I am pleased to support CarbonX as another positive step towards transparency, accountability and lower transaction costs.”