NFTs are already very popular in the art industry, providing freedom for all artists to believe in and expand their sales to the digital world. Without a doubt, why? Because the blockchain can secure the ownership of the art owner.
But, how about the benefits of using NFTs to represent and trade carbon credits?
What is Carbon Credit?
Carbon credits are a representation of the ‘right’ for a company to emit a certain amount of carbon emissions or other greenhouse gases in its industrial processes.
One unit of carbon credit is equivalent to reducing emissions of 1 ton of carbon dioxide (CO2). Carbon credits become units traded in the carbon market for carbon offset activities.
Carbon offset is the activity of balancing the number of carbon emissions resulting from certain activities (including industrial activities to daily activities) by purchasing carbon credits (in the voluntary market).
Where do carbon credits come from?
Carbon credits come from carbon emission reductions carried out by voluntary projects. These projects specifically aim to reduce carbon emissions, such as turbine construction, methane reduction projects, forest restoration, etc.
How can carbon credits be traded on the carbon market?
Simply put, green projects can submit their land absorption capacity calculations to an internationally recognized carbon credit verification agency. After obtaining certification for a number of carbon credits (each equivalent to 1 ton of CO2), the carbon credits are recorded in the depository (the institution responsible for storing the carbon credits). Only then can carbon credits be traded on the carbon market.
How can Blockchain technology, especially NFTs, help reduce carbon emissions and prevent global warming?
Carbon credits, a crucial tool in the battle against climate change, are increasingly being managed through blockchain-based ledger systems, harnessing the transformative power of tokenization. This innovative approach ensures transparency, traceability, and security in the accumulation and trading of carbon credits. The United Nations has been a driving force in endorsing blockchain technology for environmental initiatives, recognizing its potential to enhance accountability and streamline the carbon credit ecosystem. Furthermore, the European Union and the UK Government have actively supported the integration of blockchain and tokenization in carbon credit management, aligning with their commitment to achieving ambitious climate targets.
In this paradigm, INCIT (International Carbon Credit Initiative and Technology), an organization at the forefront of sustainable technology adoption, plays a pivotal role. INCIT collaborates with governments, international bodies, and private enterprises to advance the implementation of blockchain and NFTs (Non-Fungible Tokens) in carbon credit systems. By embracing these technologies, INCIT contributes to creating a more efficient and trustworthy marketplace for carbon credits, thereby facilitating the transition to a low-carbon economy. This collaborative effort underscores the global recognition of the need for technological innovation to address environmental challenges and emphasizes the importance of international partnerships in building a sustainable future.
The integration of blockchain and tokenization in carbon credit management not only aligns with the goals of the United Nations, the European Union, and the UK Government but also marks a significant step towards establishing a standardized, interoperable, and decentralized infrastructure for carbon markets. This technological evolution not only ensures the credibility of carbon credits but also fosters a more inclusive and scalable approach to combating climate change on a global scale.
What causes global warming?
Quoting the IPCC report, “Climate Change 2021,” human influence causes significant global warming, and this will depend greatly on greenhouse gas emissions or carbon emissions.
Currently, carbon emissions are one of the contributors to climate change and global warming, along with greenhouse gas emissions. Both contribute to an increase in the Earth’s temperature, leading to the greenhouse effect.
As time goes on, the acceleration of global warming increases. The whole world must immediately make a significant contribution to reducing carbon emissions. This is where carbon credits (Carbon Credits) act as an efficient mechanism.
So, what is carbon emission?
Carbon emission is the process of releasing gases (compounds) into the Earth’s atmosphere, and this gas is produced from the combustion of all compounds containing carbon, such as CO2, diesel fuel, petrol, LPG, as well as other fuels.
The phenomenon of carbon emissions is the process of releasing carbon into the Earth’s atmosphere.
And, how to calculate the amount of carbon emissions produced by a machine, such as a motorcycle?
To calculate the amount of emissions produced, it is necessary to measure the carbon footprint.
A carbon footprint is the amount of CO2 emissions and greenhouse substances associated with all types of activities of a person or other entities, such as a building, a company, a country, and others.
The unit used to calculate the quantity of carbon emissions is tons of carbon dioxide equivalent (CO2).
For example, someone in Florida who uses a private vehicle in the form of a motorcycle in LA produces a carbon footprint of 4.82 kg of CO2 every day.
What causes the creation of carbon emissions?
1. Burning compounds containing carbon elements in industrial activities. Industrial activity is one of the largest contributors to carbon emissions on Earth.
2. Release of carbon gas in the use and production process of electronic devices.
For example, smartphone use affects the level of carbon emissions in the air.
The contribution of Information and Communication Technology (ICT), including telecommunications and information equipment, to the global carbon footprint is expected to grow from approximately 1% in 2007 to 3.5% in 2020 and is projected to reach 14% in 2040. The electronic equipment production process, including generating machines, mining materials for device materials, server generators in data centers, etc., also contributes to the release of carbon gas.
3. Use of fossil fuels (oil, natural gas, and coal) to meet human needs (such as transportation, electricity generation, cooking processes, etc.) also contributes to the release of carbon gas.
What are the bad impacts of carbon emissions (or global warming)?
1. The Bad Impact of Carbon Emissions on the Environment
In general, the impact felt on the environment is an increase in the Earth’s temperature per year. As a result, snow or sea ice at the poles and glacier coverage will decrease, causing sea levels to rise. The potential for flooding in coastal areas will also continue to threaten due to the increase in Earth’s temperature.
Coastal erosion is also expected to continue increasing in some regions due to milder winters and smaller ice patches.
Increased rainfall and the potential for heavy rain or storms to occur more frequently indicate a higher risk of flooding.
The risk of forest fires increases due to the rise in the frequency and magnitude of heatwaves.
Animals in the wild may experience quite severe stress due to uncertain climates, especially warmer conditions.
Climate change and global warming result in unstable weather and natural disasters.
2. The Bad Impact of Carbon Emissions on Health
There is an increase in carbon emissions, which turns out to have an influence on the health of the human body.
Increasing Earth temperatures and extreme weather often cause the emergence of various new diseases that evolve. Apart from that, the risk of dehydration and heat stroke can be fatal.
Serious respiratory and cardiovascular problems occur, and certain types of cancer develop as air quality worsens.
The risk of disease transmission is faster through water, food, and rodents.
3. Negative Impact of Greenhouse Gas (GHG) Emissions in the Economic Sector
Agricultural, forestry, tourism, and other activities are influenced by uncertain weather patterns.
The impact on health increasingly adds to the burden and pressure on the economy and social conditions.
Extreme weather, caused by increasing carbon emissions, results in damage to infrastructure conditions such as roads, bridges, telephone poles, or electricity.
The melting of permafrost and rising sea levels, which are predicted to continue to rise, will also have an impact on the existence of local populations and difficulties in resource development.
How to Reduce Carbon Emissions?
Here are several ways to reduce carbon emissions that we can implement, including:
- Be efficient in energy use, such as turning off equipment that uses electricity when not in use, like fans, air conditioners (AC), cell phone chargers, dispensers, washing machines, televisions, and others.
- Regulate the distance traveled by private vehicles as an effort to protect the environment.
- Reduce the frequency of using private vehicles. Use public transportation for long distances, or use a bicycle or walk for distances less than 2 kilometers.
- Buy necessities from local farmers or grow your own to reduce the consumption of imported products.
- Purchase food according to the portion size or not too much to reduce food waste.
- Increase consumption of fruits and vegetables and reduce the consumption of imported products.
- Bring a drinking bottle to reduce the consumption of bottled water.
- Bring a shopping bag when shopping.
- Separate trash or household waste based on organic or non-organic types to make recycling easier.
- Use organic waste as compost.
- Be efficient in using clean water according to needs.
- Reduce the time you use your smartphone, laptop, or PC, or only use it as needed.
- Plant trees to help reabsorb the carbon and greenhouse gas emissions we produce.