How Can You Sell Your Carbon Credits As An NFT?

The basis of most crypto and web3 skeptics is that projects underpinning blockchain technology do not have a real-world impact or add societal value. This has not only been debunked by a host of NFT applications emerging from the crypto world. But now even solving a pressing global issue in climate change.

The promises and potentials of NFT have been nothing short of amazing. Now, it is just great that we are starting to witness some of its high-level use cases in mitigating carbon emissions into the atmosphere.

The marriage of NFTs with many aspects and sectors of human society can bring about the novel and life-changing innovations and disruptions in the current ethos.

Let’s take into account what NFTs would add to the carbon trading markets.

NFT X Carbon Credits: Carbon Tokens

It would be nice to take a quick recap of what both NFTs and carbon credits are, then look at what the marriage of the two brings out.

• NFTs

NFTs are used to identify anything or anyone in a unique way, they are blockchain-held tokens that represent a unique asset — whether physical or digital.

• Carbon Credits

Carbon credits also known as carbon offsets are financial that are issued by governments or other entities to reward businesses and organizations that reduce their emissions.

The integration of NFTs into carbon credits brings about the formation of what we call carbon tokens.

Usually, individuals and entities are incentivized in the form of carbon credits to reduce carbon emissions. In fact, you get the chance to trade and monetize your credits if you maintain a good energy record.

Although this is a good step forward to ensuring less exposure of carbon to the atmosphere, sadly, there have been some flaws in the design. What do we mean?

Well, there is no effective way to track the details of an entity’s carbon emissions which also makes the auditing inaccurate and difficult. Also, there needs to be more trust between buyers and sellers. So in most cases, these carbon credits do not effectively mitigate the environmental impact of carbon emissions.

However, tokenizing carbon credits as non-fungible tokens (NFTs) can address persistent issues in carbon markets. How? The use of blockchain enables faster times to market, introduces new methods of certification, and brings to market new types of economic units to reduce carbon emissions.

Also, with NFTs, carbon credits become easily traceable on the blockchain.

Greener Future through Carbon Tokens

While utility-based NFTs are a powerful instrument for transforming many industries, their capacity to increase carbon market trust and scalability may be their most crucial application for the planet’s future.

Currently, some NFT companies are in the process of making the idea of carbon tokens possible. As such, IncubateX, a web3 launchpad incubates a big-idea renewable energy project called IntegrateSun.

About IncubateX

IncubateX is the 1st women-led incubator & NFT launchpad on web3. We are here to promote big ideas and revolutionary projects in clean energy, tech, social reinvention, sustainable manufacturing, and more.

We specialize in helping innovative projects incorporate web3 infrastructure -mainly NFTs- within their ecosystems while focusing solely on mission-driven projects that make a positive impact IRL.

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