Blockchain is a ledger technology, like a traditional database, with the advantage that the record of transactions cannot be altered. Therefore, transparency, traceability, and immutability are the key attributes of Blockchain technology.
However, using blockchain as such does not guarantee the high value or reliability of the product. Blockchain does not turn junk into valuable assets.
For this reason, when you are purchasing digital Carbon Credits it is important to understand what you are actually buying – what actual project or developer is behind the certificate. So, again – Blockchain itself does NOT give you the certainty that you are buying a valuable and transparent Carbon Credit.
In the unregulated Carbon Market, the so-called Voluntary Carbon Market, there are several green projects that claim to, for instance, prevent the cutting of trees where there was never any plan to cut them. Others promise to plant trees where trees don’t have the conditions to grow. Others still will plant trees for industrial production, such as cacao, which do not offer the biodiversity protection of primary forests, therefore jeopardizing the beneficial effect of reforestation.
These unethical initiatives claim to protect the environment while, in fact, exploiting the ecosystem for financial purposes. Selling carbon certificates based on projects of this kind could deceive a buyer and make them unintentionally complicit in such corrupt commercial practice.
We are not saying that all forest protection projects are corrupted, or ineffective, nor that all project developers are primarily interested in the financial return of their initiatives, they probably are a minority, but the lack of global standards in the voluntary carbon market makes it difficult to distinguish genuine projects from those that pursue less noble goals.
In other words, when it comes to Carbon Credits, making an informed buying decision is a challenge for everyone.
To avoid this challenge, EO2 chooses to transact European Emission Allowances, which are issued and traded under the supervision of the European Commission.
And we plan to do it until we can overcome the issues that are currently affecting the quality and reliability of environmental projects in the voluntary carbon market.
In conclusion, no matter what environmental project you choose to support, or through which company, always have in mind the quality of the Carbon Credit you are buying, to prevent your goodwill and resources from being used to finance greenwashing and unethical initiatives that benefit the project developers instead of the environment.
Don’t fall for false promises.
To address this need for reliability, we at EO2 are committed to offering only regulated Carbon Credits supervised by the European Commission which ensures a system of offset free of fraud risks.
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