EY bets on the tokenization of carbon credits on Ethereum

During the last years, environmentalism and its relationship with Blockchain have been topics of interest at a level, as two concepts that are constantly looking for a relationship to boost their activities, implementing new ways of carrying out the use of Blockchain technology at At the same time, its functionalities and characteristics are used to promote environmental conservation and environmentalism.

This is how tokenization became one of these projects in charge of regularizing the carbon footprint with the implementation of Blockchain technology, through a process known as carbon credit tokenization, an economic and futuristic instrument that proposes permits to companies. companies to reduce their environmental impact.

EY has just announced the launch of an Ethereum network-based platform for carbon credit tokenization with this goal in mind. Below, in this article, we will tell you everything you need to know about this new platform and how you can take advantage of it to reduce your company’s carbon footprint.

What is tokenization?

Tokenization is a relatively new concept, as a derivative of the popularization of the use of Blockchain in different industries, and it gained great relevance during the year 2021. To enter a global context of what tokenization means, we must think of an asset physical, for example, real estate. During the tokenization process, this property is registered within a network of Blockchain, I made fractions creating the famous “Tokens”

Thanks to technological advances, these tokens permitIn trading a physical asset digitally, at the same time as it is possible to raise money from said asset, due to its fractional ownership, the asset can be traded and sold to different users in a completely decentralized way.

What is a token?

We know that today in the cryptocurrency market, there are hundreds of millions that move daily in terms of investments and purchase of assets. Blockchain networks have the ability to facilitate any financial mechanism and transactions that facilitate earning income from cryptocurrency markets.

All this is possible thanks to tokens, which can be described as the assets through which it is possible to carry out commercial operations within the Blockchain ecosystems and networks. For a Blockchain project to be successful, it has its own token, and is in charge of carrying out banking functions, becoming the official currency of the ecosystem.

However, tokens are not only used as a form of payment, but thanks to the tokenization process, it is possible to keep the security of the assets enrolled in a token, its value is transformed and subsequently protected by security systems. network security.

Tokenization of carbon credits: Blockchain’s contribution to environmentalism

As previously mentioned, the environmental impact of Blockchain It has always been among the most commented topics for environmentalist forums. However, today incredible projects and proposals have been launched that have managed to create a strategy to reduce the carbon footprint and compensate for climate change, at the same time that it is possible to generate income for projects that promote environmental conservation.

This is how the tokenization of carbon credits, a proposal that promotes the integration of the Blockchain to create a market where companies trade a certain number of permits for emitgo greenhouse gases. The objective of carbon credits is to create opportunities for companies, in a space or platform that allows them tomitto sell your carbon credits to other companies and receive rewards. In this way, the companies thatmitin less pollution they can receive additional profits, trading their carbon credits and creating a much more sustainable image.

EY bets on the tokenization of carbon credits on Ethereum

Ernst & Young is the latest company that has decided to take advantage of the incredible benefits of trading carbon credits. EY is a consulting company that focuses on professional services, and one of the most outstanding projects of this organization is its interest in improving the carbon footprint globally.

This is how they have announced the launch of a new advanced platform on the Ethereum network, which will be based on a carbon credit market that guarantees the transparency and security of transactions, while other organizations and companies will be able to track their carbon footprint through the platform.

EY begins its foray into the world of Blockchain technology in a truly innovative way, through the carbon credit market under the name EY OpsChain. In the interface it will be possible to trade tokens based on the InterWork Alliance carbon emissions standard. Within its interface, the traceability of carbon emissions allows them tomitit will allow companies to have a broader understanding of where they stand in terms of their environmental impact, and companies will even be able to tie their carbon emissions to a specific product.

EY OpsChain ESG EY’s carbon credits platform

The launch of EY OpsChain was announced this week in London, UK, on ​​the occasion of the Global Blockchain Summit. At the moment, EY OpsChain is available in a beta version, built on ethereum smart contracts, uses the EY Blockchain Saas protocol to create a standard that is accessible, as well as clearly and concisely present CO2e positions.

In this regard, Paul Brody, EY technology leader, commented that the objective of the project focuses on improving the traceability and verification of carbon credits, through the use of Blockchain technology, it is possible to create greater visibility of the actions and emissions that promote decarbonization. Likewise, Sam Azad, leader of OpsChain ESG, commented that Blockchain is the ideal tool to generate trust, in addition to promoting companies in a much more digital environment to create zero-emission organizations that promote environmental conservation and environmentalism.

EY is taking into account the climate urgency in which we are involved on a daily basis, through a market for carbon credits, it is possible to create a true offset of the use of Blockchain, at the same time that companies make extensive profits and profits. Carbon credits are an ideal solution for companies seeking to reduce their emissions and raise awareness of the negative impact that can be created on ecosystems.