The UPA stated that cryptocurrency users can “burn” the Universal Carbon token, UPCO2, to negate their carbon footprint. Nevertheless, they also have the option of retaining the tokens or trading them using Uphold, in a manner similar to buying and selling of digital assets.
Uphold is a popular crypto wallet and trading platform and the firm behind the wallet is also a member of the UPA.
A UPCO2 token constitute a validated venture in the rainforest minimizing its carbon emissions by one metric ton per year. The association deploys digital certificates provided by Verra, a global standards institution that enables certified ventures to convert their greenhouse gas deductions into tradable carbon credits.
UPA chairman Matthew Le Merle said “The projects we support through carbon credit purchases prevent deforestation in the Amazon, Congo Basin and Indonesia as well as other threatened rainforests. At a key moment for climate change, UPCO2 allows people worldwide to do good for the planet and potentially do well for themselves.”
The free carbon credits pegged to these carbon tokens supposedly “should eventually fetch the same price anywhere,” as the tokens represent a yearly carbon emission of one metric ton and calculated in the same format for any company intending to negate its carbon emission.
The “dollar-denominated, globally-recognized, fungible and perennial assets” usually retail their face value until utilized. Le Merle highlighted the benefit as follows:
“Combine a digital asset with a rainforest carbon offset and give everyone in the world access. How could that not be a great idea?”
To battle climate change, some enterprises are building blockchain platforms for trading tokenized carbon credits. Back in April, the International Chamber of Commerce stated that it would work in tandem to ensure greater liquidity in the carbon credits market via the adoption of blockchain.
The UPA represents a consortium of crypto and blockchain firms that aim to expedite the adoption of blockchain in mainstream financial sector. The association includes organizations such as Bittrex Global, CertiK, Ledger, Uphold and Infinigold.