The crypto market has become extremely volatile in recent times. The plummeting value of Bitcoin, along with other stablecoins officially marks the recession of the crypto market. The bad news is – it’s not only crypto. The stock market has also crashed and the inflation of fiat currencies is skyrocketing. To top things off, all of this is happening at breakneck speed.
There’s no way around it, the times we live in are riddled with uncertainty.
With the value of crypto and fiat currencies diminishing before our very eyes, so does our trust and confidence in them. This further begs the question: Is there something that not only keeps its value but also manages to increase it? And if so, is there any “guarantee” that this will be the case in the future?
In the midst of the economic downturn, there is one market that is not only stable but also continues to experience significant growth.
The carbon market is a billion dollar market with increasing demand and dwindling supply.
Thanks to the Paris Agreement on climate change, emission allowances are dropping by 2% each year. The demand for carbon compensation has only increased since the signing of the binding agreements in 2015. The price of compensated carbon per ton has increased by 62,5% just in the last year. With the continuous reduction of emission allowances, this figure will only increase. Currently, one ton of compensated CO2 in Europe costs 92€. Despite crypto markets bleeding, the carbon markets are booming!
However, not all is good and fair in the carbon market. Carbon credits have proven to cause more problems than they solve. This is due to the controversial practice of “double-counting”. Double counting happens when the removal of carbon dioxide is counted twice. This happens when both the issuing and receiving parties claim the carbon compensation simultaneously. Another bad example is the issuing of the so-called carbon allowances. Carbon allowances are tradable certificates that allow a party to emit a metric ton of CO2 or an equivalent of other greenhouse gases. In the end, the current system impedes action against climate change because of these bad practices. To get a better understanding of why double carbon credit counting and carbon allowances are so bad, consider the following: One ton of CO2 is compensated, and then two are counted. This leads to the penalty-free emission of one metric ton of carbon dioxide. The result is companies giving themselves a pat on the back for “being carbon neutral” while more and more CO2 is released into the atmosphere.
Apart from the negative environmental impact of the current system, it also creates wealth inequality. This is caused by its reliance on intermediaries – carbon credit brokers, banks and other financial institutions. They do not add any value to the process of carbon compensation. Instead, they only make purchasing carbon compensation more complicated and expensive. On top of that, they take away income from people who facilitate the actual carbon removal.
It is evident that the current system relies on exploitative practices, impedes action against climate change and does not support the equitable sharing of income.
At Coorest, we aim to change that.
We are at the last stages of releasing the Coorest carbon standard. Our ecologists and legal team are working alongside an independent auditor to legitimise the validity of our carbon tokens. The third party we are working with is certified by the United Nations. This means that in the future, $CCO2 tokens will be a carbon compensation method recognized by the UN. We will peg the $CCO2 price to an average price of carbon credits. We stand by our promise to make CO2 compensation transparent and accessible.
We are also glad to announce that our DApp is entering the final phase of its development.
The Coorest DApp can be used to buy, and sell NFTrees, $CCO2 and $CRST tokens. $CCO2 can also be claimed through NFTrees, which enables the holder to receive a PoCC certificate after burning the token. The DApp also allows you to view transactions and onboarded projects. The Coorest DApp is at the centre of our ecosystem, and we eagerly anticipate its arrival.