Blockchain Startup Toucan Aims to Revolutionize Carbon Offset Market
At a hackathon near Trafalgar Square in London a few years ago, Raphaël Haupt and James Farrell had a conversation that sparked the idea for Toucan, a project that seeks to utilize blockchain and cryptocurrencies to combat climate change. The project is now aiming to revolutionize the carbon offsetting market.
Voluntary Carbon Offset Market
The voluntary carbon offsetting market exists as a way for companies and individuals to balance out their carbon emissions and reach net zero. Carbon credits are used to offset emissions, creating a carbon-neutral result. These credits can be created through various methods, such as cutting down emissions, planting forests, or funding clean energy projects like hydroelectric dams.
The Current State of the Market
However, the current system is complex and unregulated, with multiple private standards bodies each running their own carbon credits registries. According to John Hoopes, also known as John X in the crypto community, who is leading Toucan’s strategy, this has created a fragmented market with differing standards, formats, and methodologies for carbon credits.
Toucan’s Solution
Toucan serves as a market infrastructure that converts and standardizes physical carbon credits from various registries into carbon tokens on a single blockchain super-registry. These tokens are then aggregated into “pools” and users are given tradable crypto tokens, with Toucan’s first carbon pool being called BCT, or Base Carbon Tonne.
Benefits of Toucan’s System
By consolidating the system onto one registry, Toucan aims to prevent double-reporting of credits and provide transparency in the market. The system also allows for the categorization of carbon tokens, catering to the specific needs of buyers. Hoopes states, “Our system allows us to create those categories of carbon tokens.”
Future Impacts and Alignment with Corporate Goals
Toucan’s system could have significant implications for how companies approach offsetting their emissions. It provides the flexibility for corporations to align their offsetting activities with their brand and preferences, whether it be through nature-based solutions, technology-based solutions, or specific geographic locations.
With Toucan’s innovative approach to carbon offsetting, the future of combating climate change looks promising as the company works to bring standardization and transparency to this crucial market.
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