Experts are convinced that the various technologies underlying Web3 can play a major role in the fight against global warming. Faced with this observation, the World Economic Forum (WEF) created the Crypto Sustainability Coalition. The goal? Explore how these technologies can manage clean energy and decarbonize.
Fight against global warming: assessing the role of Web3
To fight against climate change, there are already large-scale actions carried out simultaneously (less polluting transport, reduction of waste, etc.). At the same time, other, more subtle technologies can help behind the scenes to achieve this common goal. Web3 (all blockchain-based decentralized technologies) is one of them. The World Economic Forum (WEF) has decided to take these technologies into account and is launching the Crypto Sustainability Coalition. The latter brings together around thirty companies, organizations and other institutions interested in the subject. Big crypto projects like Solana, Avalanche or Ripple are part of it.
Members will explore how they can organize to support the climate effort. According to WEF Head of Blockchain and Digital Assets Brynly Llyr, Web3 can support and reward community engagement and direct action. Technology makes it possible to directly coordinate the work of many individuals and enables collective action without central control. And with blockchain, all stakeholders can ensure money is legislated to effectively fund climate projects.
Support decarbonization
As part of the launch of this collaboration, Madeleine Hillyer, media specialist for the WEF says: ” The launch of the coalition is timely as there is an urgent need to support the decarbonization of cryptocurrency and ensure the industry is part of the climate solution “. Directing investments towards effective decarbonization activities will contribute to the fight against global warming. Stakeholders nevertheless face issues of trust, transparency and adoption.
Blockchain offers a foundational technology on which new carbon markets can be built to address these shortcomings. The coalition will thus be able to work on how to develop blockchain solutions in order to mature and potentially facilitate global carbon markets. And this, with increased efficiency, transparency and accessibility. More and more companies are recognizing that blockchains and smart contracts can advance climate change initiatives.
Encourage and support research
The Crypto Sustainability Coalition has set up several working groups that will focus on three key topics related to Web3 technologies. Specifically, the research will focus on cryptos, blockchain and their uses. The first point concerns the energy consumption of these technologies. Coalition members will explore how these may influence the climate in the future. The second point will focus on how these technologies can be harnessed to decarbonize daily activities.
Finally, another working group will study the standardization and integration of carbon credits in the blockchain. Globally, carbon offset markets suffer from fragmented implementation and a lack of value exchange between markets. The carbon credits granted and/or withdrawn often do not really reflect their true environmental effect. This creates imbalances between supply and demand. Blockchain can provide the transparency needed to address these challenges.
Harnessing Web3 technologies has enormous potential for the climate. Decentralized applications make it possible, among other things, to facilitate the trading of clean energy. They also ensure appropriate use of funds in addition to improving the flow of climate finance. Finally, blockchain can improve and accelerate carbon trading.
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