Experts believe that the various technologies behind Web3 can play an important role in the fight against global warming. Faced with this observation, the World Economic Forum (WEF) created the Crypto Sustainability Coalition. The target. the goal? Find out how these technologies can manage clean energy and decarbonise.
Fight against global warming: assessing the role of the Web3
To combat climate change, large-scale actions are already underway at the same time (less polluting transport, waste reduction, etc.). At the same time, other more subtle technologies can help behind the scenes 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 about thirty companies, organizations and other institutions interested in the subject. It includes large cryptocurrency projects such as Solana, Avalanche or Ripple.
Members will explore how to organize themselves to support the climate effort. According to Brynly Llyr, WEF’s Head of Blockchain and Digital Assets, Web3 can support and reward community engagement and direct action. Technology allows the work of many individuals to be directly coordinated and allows collective action without central control. And with blockchain, all stakeholders can ensure that money is legislated to effectively fund climate projects.
As part of the launch of this collaboration, Madeleine Hillyer, Media Specialist for the WEF said: “ Coalition launch is timely as there is an urgent need to support cryptocurrency decarbonisation and ensure the industry is part of the climate solution “. Directing investments towards effective decarbonisation activities will contribute to the fight against global warming. However, stakeholders face problems of trust, transparency and adoption.
Blockchain offers a fundamental technology on which to build new carbon markets to address these shortcomings. The coalition will then be able to work on how to develop blockchain solutions in order to mature and potentially facilitate global carbon markets. And this, with greater efficiency, transparency and accessibility. More and more companies are recognizing that blockchain and smart contracts can drive climate change initiatives.
Encourage and support research
The Crypto Sustainability Coalition has established several working groups that will focus on three key topics related to Web technologies3. Specifically, the research will focus on cryptocurrencies, blockchains and their uses. The first point concerns the energy consumption of these technologies. Coalition members will explore how these could affect the climate in the future. The second point will focus on how these technologies can be leveraged to decarbonise daily activities.
Finally, another working group will study the standardization and integration of carbon credits in the blockchain. Globally, carbon offsetting markets suffer from fragmented implementation and a lack of value trading between markets. 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 exchange of clean energy. They also ensure appropriate use of funds as well as improve the flow of climate finance. Finally, blockchain can improve and accelerate carbon trading.
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I stumbled upon the cryptosphere by chance and witnessed the birth of a new era, that of DeFi. It is about economic freedom, transparency and opportunities available to all. This is a universe that deserves to be known.