Since the signing of the Kyoto Protocol in 1997, a global carbon offset market has developed to slow down climate change through the purchase and sale of carbon credits. In this market, companies can buy carbon credits to offset their emissions and, in doing so, help to fund “green projects”. This market previously lacked transparency mechanisms and was run by brokers, which meant that contributions failed to reach their intended sustainability projects in full, as a significant part remained in the management process.
ClimateTrade’s solution challenges the traditional trading model by providing a marketplace to connect project developers working to mitigate climate change with companies interested in offsetting their carbon emissions. This is done automatically and free of brokers, creating a real positive impact in terms of environmental protection.
This initiative was recognised as one of the best solutions by the United Nations in the World Economic and Social Survey 2018 and by the World Tourism Organization (UNWTO) in the UNWTO SDGs Global Startup Competition 2020.
How it works:
For companies: Companies log on to the marketplace. They choose the carbon offset projects they want to support and purchase the number of carbon credits that fits their needs. They receive an official certificate by email. The transaction is added to the blockchain ledger for verification.
For customers/suppliers: Customers and suppliers visit a company’s website to buy a product or service. They are prompted to pay an additional amount to offset the footprint their purchase will make. At the end of the process, they automatically receive a nominative certificate with details about the project by email. The transaction is added to the blockchain ledger for verification.
Blockchain technology makes it possible to trace every single transaction, which means no data tampering. Plus, transaction costs are reduced by 30 to 40%.
On this platform, companies can offset their carbon footprint directly by choosing the carbon credits that best suit their needs, and get an official certificate. The carbon offset projects are verified by organisations against the highest internationally recognised standards, such as the United Nations Clean Development Mechanism Registry, the Verified Carbon Standard (VCS) and the Gold Standard.
ClimateTrade has also developed an interface (API REST) that allows companies to provide their customers and suppliers with an easy-to-use, transparent service for offsetting the individual carbon footprint they make by purchasing products and services.