4. February 2023

• Carbon blockchain executives argue that companies must understand why they are using carbon credits and how to make a real impact.
• Karen Zapata, the chief operating officer of carbon blockchain platform ClimateTrade, noted that many companies don’t understand what a carbon credit is or how it works.
• Matthew Porter, the CEO of carbon marketplace Tolam Earth, said that carbon trading alone “doesn’t solve a lot” without knowing why they are doing it and creating incentives.

At the World Economic Forum in Davos, Switzerland, executives from carbon blockchain platforms gathered to discuss the increasing interest from companies in carbon trading. Cointelegraph’s editor-in-chief Kristina Lucrezia Cornèr moderated the panel session.

Karen Zapata, the chief operating officer of carbon blockchain platform ClimateTrade, began by stressing the importance of understanding the impact of carbon credits rather than simply focusing on the pricing behind them. She recalled talking to a sustainability manager of a “big, big company” who admitted he didn’t know what a carbon credit was or how it works but was being pressured by the marketing team to “move this forward.” Zapata emphasized that companies won’t be able to explain their actions to their community if they don’t understand what it is.

Matthew Porter, the CEO of carbon marketplace Tolam Earth, then added to the conversation by saying that carbon trading alone “doesn’t solve a lot” without knowing why they are doing it and creating incentives. He believes that companies must be more proactive and focus on how to use carbon credits to actually make a difference.

The panelists agreed that the use of blockchain technology is key to ensuring the transparency and accuracy of carbon credits. They noted that with blockchain, companies are able to track carbon credits at every stage and be sure the credits they are using are real and authentic.

The panelists concluded that while blockchain technology can help reduce the potential for fraud, companies must also take responsibility for understanding and using carbon credits correctly. They agreed that it is not enough to simply trade carbon credits on the blockchain and that companies must have a clear goal of how to make an impact with their actions.