Veridium Teams With IBM To Create Social And Environmental Impact Tokens

Announcements, Blockchain, Innovation, News | May 17, 2018 By:

Environmental FinTech company Veridium is partnering with IBM to help transform the carbon credit market using blockchain technology.

Veridium, a collaborative initiative of EcoSmart Labs, Brian Kelly Capital Management, IDEAcarbon, Everland and CBL Markets, will leverage IBM’s blockchain technology and expertise to transform carbon credits into a new type of fungible digital asset that can be redeemed and traded on the Stellar network with less friction. IBM will be providing the token architecture and token interface with its various industry specific Hyperledger Fabric blockchain platforms.

Veridium said that integrating the entire process of carbon accounting and offsetting into a digital token on a public, permissioned blockchain network can help make measuring environmental impact, transferring ownership rights, and redeeming the underlying carbon offset more efficient. It would help enhance trust and integrity in the flow of information among trading partners and network participants.

The token, called Verde, will represent carbon accounting and offsetting backed by environmental assets, including Triple Gold REDD+ credits from InfiniteEARTH, which authored the first REDD+ forest carbon accounting methodology, a protocol now embodied in the UN Paris Agreement.

Todd Lemons, CEO and Co-Founder of Veridium, said that for years, they’ve been trying to mitigate environmental impacts at every point in the value chain, however previous solutions still presented significant complexities and costs.

“Our work with IBM is the first step in dramatically simplifying the accounting and offsetting processes, and therefore ultimately helping reduce costs,” said Lemons. “Our digital environmental assets are designed to help companies and institutional investors purchase and use carbon credits to mitigate their environmental impacts today, and even hedge their potential carbon liabilities risks in the future.”

Bridget van Kralingen, Senior Vice President, IBM Industry Platforms and Blockchain, said that by using a public, permissioned blockchain network, they can help Veridium create a new sustainable marketplace that is good for the world.

“This is a great example of how industries are being reinvented by blockchain, in this case establishing a far more efficient and transparent approach to carbon accounting and offsetting that will empower individuals and companies to play a role in improving our environment,” said Kralingen.