World Bank Affiliate IFC Backs Blockchain-Based Platform for Carbon Offsets

International Finance Corporation (IFC), a World Bank Group member focused on investment in less-developed countries, is teaming with energy-focused blockchain platform Chia Network on the Carbon Opportunities Fund.

Also involved are sustainability finance company Aspiration and biodiversity investor Cultivo, and the fund will provide blockchain-based carbon credits purchased from projects chosen by those two companies.
Carbon offsets are a means for companies to compensate for their emissions by purchasing credits that fund projects in tree planting or renewable energy.
"This new framework that will use new blockchain technologies is an innovative way for capital markets to fully engage in carbon credit trading in a transparent, secure, fair and beneficial manner," said Paulo de Bolle, senior global director at IFC.
Reuters reports the fund as being seeded with $10 million.
Blockchain technology would appear to be a natural medium for carbon offset-related projects due to this transparency offered. However, for many blockchain is tainted by its association with the energy-heavy mining involved in cryptocurrency mining, the process by which new coins are released into the network.

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Jamie Crawley

Jamie Crawley is a CoinDesk news reporter based in London.

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