One of the world's largest ride-sharing companies, Cabify, is moving to offset its carbon emissions with the help of blockchain technology.
Announced last week, the Latin American ride-sharing business has tapped Valencia, Spain-based blockchain fintech firm ClimateTrade to digitize and track its carbon emissions.
ClimateTrade's chief marketing officer, Ana Karen, told CoinDesk via email that Cabify selected her firm's platform as a way to compensate for the ride-sharing giant's carbon footprint. The system works by tracking users' rides and offsetting the carbon dioxide generated by distributing credits on ClimateTrade's blockchain marketplace.
The marketplace acts as an intermediary between those seeking to offset emissions and those wishing to invest in sustainability, according to ClimateTrade's website.
Users can directly offset their carbon footprint by selecting the most suitable credits from the projects offered and obtain the records of all their transactions in a private account.
"This alliance will provide transparent accreditation of the company's carbon neutrality," said ClimateTrade's CEO Francisco Benedito in a press release.
Cabify is popular throughout Latin America as well as Spain, where it is based, and currently operates in 40 cities across nine countries, per the company's website.
"Climatetrade and its customers will be using Algorand as its primary infrastructure layer and leveraging its capabilities for carbon offsetting," according to the announcement.
Additionally, Borderless Capital has joined a €1 million seed round for Climatetrade, per the same release.
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