World Bank Associate IFC Backs Blockchain Platform for Carbon Credit

• The International Finance Corporation (IFC) is aiming for initiating investment in less-developed countries.
• IFC team-up with blockchain based platform, Chia Network on the Carbon Opportunities Fund.
• The aim of the carbon opportunities fund is to enhance investments for tokenized trading of carbon credits.

In the IFC association, it includes Cultivo, which is a finance company. It is an aspiring and biodiversity investor. The fund will provide blockchain based carbon credits that are purchased from the projects selected by the two firms.

Here the Carbon Offset is a signifier for firms to compensate for its emissions. It will buy the credits that provide funds to the projects like tree planting or renewable energy.

What Does the IFC Representative Say?

Paulo de Bolle, who is the senior global director at IFC said that “This new framework that will use new blockchain technologies is an innovative way for capital markets to fully engage in carbon credit trading in a transparent, secure, fair and beneficial manner.” While reportedly the fund will be around $10 million.

In addition, blockchain technology naturally appeared as a medium for the carbon offset-related projects. It is because it provides transparency. On the other hand, some blockchain is stored due to its association with the energy-heavy mining involvement in crypto mining. Crypto mining is referred to as the process of releasing new coins into its network.

In the beginning of this year, a budding movement in the crypto world said that it can keep the carbon out of the atmosphere by locking it on a blockchain. It was part of mining week of this year. While some projects like Toucan, Regen and Moss believe that the carbon credit projects will boost the transparency and accessibility to the carbon credit market.

Steve Anderrson

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.