Carbon credits market and blockchains

Carbon credits, also known as carbon offsets, are licences that grant the holder the right to release a specific quantity of carbon dioxide or other greenhouse gases. Each credit represents the emission of one ton of carbon dioxide or its equivalent in other greenhouse gases. The carbon credit is half of a so-called cap-and-trade scheme. Those companies that pollute are given credits which enable them to continue polluting up to a specific level. Meanwhile, one organisation may sell unused credits to another company that requires them. Private enterprises are, therefore, motivated twice to minimize climate emissions. First, they must pay additional credits if their emissions exceed the quota and, secondly, they may generate money by lowering emissions and selling extra permits to those that need more carbon credits.

Source: X (Twitter)

However, the carbon credit market has been plagued with problems around the verification of the authenticity of those involved and how the actual credits…