Blockchain Technology

Blockchain Technology

ClimateTrade use blockchain technology
Blockchain Technology

Why does ClimateTrade use blockchain technology?

Understand how this technology brings innovation and transparency to the carbon market. In the Kyoto protocol (1997) signing countries agreed to limit the emissions of six greenhouse gases, here is where carbon credits were born. This meant that polluting companies,  instead of paying taxes to the governments, could pay directly to the companies which generate those credits. Likewise any traditional market, brokers started to speculate and get most of the profit, preventing money from reaching the green projects and hence hindering their development. This not only left unprotected carbon credit sellers but also buyers who could be sold the same credit several times (due to the lack of transparency and traceability of the carbon credits cancellation mechanism). The problem as it usually happens was that the market was centralized in the hands of traditional brokers, who used to manage their own databases which can be manipulated at their own discretion, being able to write, change, delete and restrict access or other actions. The process also becomes more expensive, lengthy and tedious, discouraging many companies from buying / selling carbon credits. ClimateTrade brings this situation to an end, allowing companies and project developers to benefit from blockchain technology.  Blockchains are distributed ledgers which replicate the data across the different nodes involved in the network.That is, instead of being centralized on a single server, the information is decentralized on different computers, each saving its own copy. This prevents any record from being changed or deleted, since it only allows adding new data, thus preventing data from being altered or manipulated. The information on a public blockchain is accessible to everyone and visible on any block explorer, facilitating the traceability and transparency of canceled carbon credits. Neither ClimateTrade, nor the creators of the blockchain itself could alter the information since all nodes have replicas of the data and are required to follow the consensus algorithm, which ensures the immutability of the data stored in them. The consensus algorithm used in the blockchains we work with is Proof of Stake. The first blockchains are Proof of Work (Bitcoin and Ethereum 1.0) which involves spending huge amounts of energy to produce new blocks and concentrate the power in the hands of a few miner pools. On the contrary, the Proof of Stake allows to process a greater number of transactions per second, decentralizing the rewards per block to anyone who operates the blockchain token together with a laptop or mobile connected to validate the blocks, thus saving on fees and reducing the environmental impact in  more than 99%. To go further in the process of automation, ClimateTrade created a REST API available to company developers who wish to integrate this innovative system. This allows the incorporation of already existing projects called from this API into its code, thus offsetting the carbon footprint generated in their business processes.

June 15, 2021
algorand climatetrade
Blockchain Technology

The greenest blockchain technology: is it possible?

Algorand pledges to be the greenest blockchain and be carbon neutral thanks to the alliance with ClimateTrade. The Algorand network was designed from the ground up to minimally impact the environment. Because its consensus is not based on energy-intensive proof-of-work and requires minimal computational power or electricity, Algorand has been a leader in minimizing the environmental impact of blockchain technology. “We understand that the mechanics of measuring the environmental impact of a global, decentralized and widely used blockchain are nuanced and complex. That’s why we are teaming up with ClimateTrade to continue and double-down on our eco-conscious efforts.” said Silvio Micali, Founder of Algorand.  “Clean energy and addressing climate change are priorities for the United Nations, global organizations and governments alike. Algorand has a very low carbon footprint to begin with, and we are inspired by the leadership role the organization is taking to ensure the next generation of blockchain adoption is environmentally friendly,” said Francisco Benedito, CEO of ClimateTrade. How does Algorand offset its Carbon Footprint with Climatetrade? To achieve a carbon-negative network, Algorand and ClimateTrade will implement a sustainability oracle which will notarize Algorand’s carbon footprint on-chain for each epoch (a set amount of blocks). With its advanced smart contracts, Algorand will then lock the equivalent amount of carbon credit as an ASA (Algorand Standard Asset) into a green treasury so that its protocol keeps running as carbon-negative. Through this partnership, Algorand is able to leverage several projects of our marketplace that help to offset the low footprint of their network: The Southern Cardamom REDD+ project initiated by Wildlife Rescue and Wildlife Works, which protects the rainforest by avoiding more than 3 million tons of carbon emissions annually. The Vichada Gold Standard Climate Project which is aimed at reforestation in the Orinoco Department in Colombia. The Oaxaca Wind Project by Acciona which covers the electricity demand of 700,000 Mexican homes, avoiding the emission of 670,000 tons of CO2. The Sumatra Merang Peatland Project by ForestCO2 which aims to protect and restore the peatland ecosystem in Indonesia. With this alliance we not only work to achieve the carbon neutrality of Algorand but also to have a positive impact on the environment, which is how every innovative blockchain ecosystem should be in the future.

June 4, 2021

Other Categories

U.S. climate bill
Climate Change News

Senate passes most ambitious U.S. climate bill to date

The United States Senate passed the Inflation Reduction Act yesterday (August 7), the most ambitious climate bill ever adopted in the country. The bill, which is expected to be signed into law in the coming weeks, allocates US$349B to climate and green energy projects, and could lead to an estimated 40% reduction in the country’s greenhouse gas emissions by 2030 (from a 2005 baseline). Climate budget distribution According to Moody’s Analytics, two-thirds of the US$349B will be distributed in the form of federal tax credits that create incentives to produce electricity from clean energy sources, invest in renewable energy technologies, and address climate change through carbon sequestration, renewable fuel production, and clean energy manufacturing. The other one-third includes government funds to support conservation practices that help to mitigate GHG emissions, particularly from agriculture and forestry, and adopt clean energy technologies and energy efficiency in housing. In reaction to the passing of the bill in the Senate, Francisco Benedito, CEO of ClimateTrade, comments: “The Inflation Reduction Act is a historic opportunity both for the United States and the world. The bill will have a tremendous impact in tackling the climate crisis. It will put the U.S. in a leadership position by taking action and reducing emissions up to 41% and generating over a million additional jobs by 2030. We at ClimateTrade are very excited about this bill and look forward to putting climate front and center for our business community.” Reducing electricity costs The bill also aims to reduce the cost of electricity and make the U.S. energy self-sufficient: in the first half of 2022, the rise in gas prices that resulted from the Ukraine-Russia war led to a dramatic increase in electricity prices throughout the U.S., between 13% (in the Southwest region) and 135% (in the New York region), according to the Energy Information Administration. In total, the bill sets aside US$739B of tax money to make life more affordable for Americans through energy investments and healthcare cost reduction measures. Much of the budget for this reform is expected to come from higher taxes on corporations. The Inflation Reduction Act was supported by all 51 Democrats and opposed by all 50 Republicans in the Senate.  Climate regulations in the U.S. This is the latest in a series of attempts to regulate climate action in the United States. In March 2022, the Securities and Exchange Commission (SEC) published proposed rules for climate-related risk and greenhouse gas disclosure for listed companies in the country. It then opened a period of public consultation that was due to end in June, and expects to finalize the regulation by the end of this year. The proposed rules include the mandatory reporting of Scope 1, 2 and 3 emissions, as well as any material impacts climate-related risks can have on the company’s business, strategy and outlook, such as physical and regulatory exposures. ClimateTrade can help you navigate these regulatory changes and support your company’s transition to Net Zero. Get in touch with our experts to discuss your needs.

August 8, 2022
Consultia ClimateTrade
ClimateTrade News

Consultia Business Travel launches Destinux Green in alliance with ClimateTrade

Consultia’s new Destinux Green carbon offsetting functionality was developed in collaboration with ClimateTrade.   Madrid, October 19 2022.- Consultia Business Travel, a Spanish company specialized in end-to-end business travel management, has launched Destinux Green, a functionality allowing companies to offset their carbon footprint on its Destinux platform. Destinux Green also provides a traceable carbon offsetting certificate, and companies that offset the entirety of the emissions generated over a year can obtain the Destinux Green label issued by Destinux. Destinux therefore becomes the first corporate travel platform through which a company can verify and offset its carbon footprint, as well as receiving a certificate for this activity, in just one click. Offsetting through Destinux Green can be done by contributing to a selection of environmental and social responsibility projects among which the company can choose. Destinux Green improves the image of an organization in the eyes of its clients, users and consumers; it saves costs and increases the motivation of environmentally-conscious employees. The application, exclusive to Destinux, has been developed with ClimateTrade and uses blockchain technology, which brings transparency to the entire emissions offsetting process, thus generating trust and ensuring the real impact of carbon offsetting activities. Upon concluding a transaction, an offsetting certificate is issued with information about the chosen project and a traceable blockchain key, as well as the official certificate of cancellation of the credits in its corresponding registry. “The carbon offset projects available on ClimateTrade are certified by the most reputable global standards and aligned with the Sustainable Development Goals, which guarantees their real impact in the fight against climate change,” explains Francisco Benedito, CEO of the company. Sustainability is a very important aspect for companies that are increasingly looking for systems that allow them to minimize their environmental impact. In the words of Carlos Martínez, CEO of Consultia Business Travel: “The technology implemented by Destinux makes it easier for organizations to meet their sustainability goals quickly and easily. They can, through an innovative system, offset CO2 emissions by supporting climate action projects and meet their environmental objectives, managing all their business trips in a comprehensive, transparent and sustainable manner.”   About Consultia Business Travel Consultia Business Travel® is a Spanish company specialized in the full management of business trips (Travel Management Company). It offers a differentiated solution based on software in the cloud (Destinux®) and a personalized advice service (Personal Travel Assistant), providing a comprehensive solution for managing business travel. In addition, it manages companies’ meetings, incentives, congresses and events (MICE) needs. The company, with Spanish capital and founded in 2010, currently has offices in Spain and Portugal. The company has integrated nearly 3 million hotels, more than 600 airlines, 27 car rental companies distributed throughout the world, and private transfers in more than 160 countries, RENFE and taxis and VTC in more of 90 states, achieving online connectivity and efficiency that stand out in the business travel market.   About ClimateTrade ClimateTrade is a blockchain-based climate pioneer, aiming to empower large-scale decarbonization through constant innovation. The ClimateTrade marketplace allows companies to offset their climate impact by purchasing carbon, plastic and biodiversity offsets, as well as renewable energy certificates directly from project developers. The ClimateTrade API, Widget and Whitelabel allow clients to integrate marketplace functionalities into their own platform, making their products climate-positive. ClimateTrade is also spearheading disruptive innovation around the digital certification of carbon mitigation projects and supporting the digitization of national carbon registries.

October 20, 2022