Veridium Labs Ltd, a company incubated by EnVision Corporation, announced on Tuesday it is collaborating with IBM (NYSE: IBM) to help “transform” the carbon credit market using IBM blockchain technology with the goal of making it easier for companies to offset their environmental footprints. The company stated its new solution for carbon credits will encompass the entire process of carbon footprint accounting and offsetting:
“Relying on IBM blockchain technology and technology expertise from IBM, the company plans to transform carbon credits into a new type of fungible digital asset that can be redeemed and traded on the Stellar network with less friction. The project builds upon IBM’s work in both public and private blockchain networks to enable clients and developers to engage in token-related networks.”
While sharing more details about the collaboration, Todd Lemons, CEO & Co-Founder of Veridium, said:
“For years, we’ve been trying to mitigate environmental impacts at every point in the value chain, however previous solutions still presented significant complexities and costs. Our work with IBM is the first step in dramatically simplifying the accounting and offsetting processes, and therefore ultimately helping reduce costs. Our digital environmental assets are designed to help companies and institutional investors purchase and use carbon credits to mitigate their environmental impacts today, and even hedge their potential carbon liabilities risks in the future.”
Bridget van Kralingen, Senior Vice President, IBM Industry Platforms and Blockchain, also commented:
“By using a public, permissioned blockchain network, we can help Veridium create a new sustainable marketplace that is good for business and good for the world. This is a great example of how industries are being reinvented by blockchain, in this case establishing a far more efficient and transparent approach to carbon accounting and offsetting that will empower individuals and companies to play a role in improving our environment.”
The company then added it plans for its initial tokens to represent carbon accounting and offsetting backed by environmental assets, including Triple Gold REDD+ credits from InfiniteEARTH, another Envision company.