Carbon credits and the reshaping power of blockchain

Also known as carbon offsets, carbon credits permit the owner to emit an equivalent amount of tons of carbon dioxide or other greenhouse gases. According to Coherent Market Insights, the global carbon credit market is expected to reach US$ 2,407.8 billion by 2027, a CAGR of 30.7% from between 2020 and 2027. The last time the world witnessed a significant decrease in carbon emissions was during the COVID-19 pandemic global lockdown. Emissions in 2021 increased to 36.3 gigatonnes. Global energy-related carbon dioxide emissions rose 6% in 2021 to 36.3 billion tons, their highest-ever level, and to combat this the UN has created carbon credits as a temporary measure until the end of 2023.

The value of the carbon offset market projected to exceed $500billion by 2050

Source: Bloomberg

Two carbon credits markets exist: voluntary and compliance - the latter being enforced by world governments. The value of the global carbon credit market reached $850 billion in 2021 (a 164% increase from 2020) a…