By Green Impact Exchange (GIX) Team
As companies increasingly seek credible ways to demonstrate climate impact, that often means more than starting a recycling program, it often means getting involved in carbon offsets. Traditional carbon markets have taken a bit of a hit in recent years, with criticisms about opacity, double counting, fraud and pricing.
A new study in Sustainable Futures supports how blockchain technology can address those criticisms and help improve carbon markets.
Blockchain technology holds the potential to solve many of these problems, and indeed the researchers conclude that “tokenized carbon markets can enhance trust, transparency and climate finance.”
Focusing on a dataset of tokenized carbon trading from 2020-2023, researchers found that under certain conditions, blockchain adoption can improve pricing and make transactions more efficient.
Yet digital technology is not a panacea. “In times of heightened volatility, market participants may be more skeptical of experimental or unregulated instruments, underscor[ing] the importance of integrating carbon tokens into broader climate-financial governance frameworks that can provide safeguards against speculative excess and systemic risk.”
And that’s where capital markets come in. As a national securities exchange, GIX is committed to building trusted infrastructure to protect investors and strengthen capital markets around sustainable finance. GIX intends to keep pushing for markets that are credible, transparent, and accountable—because investors don’t reward good intentions, only real results.
Read the whole Sustainable Futures paper
Follow the Green Bottom Line Podcast
Related Content: SEC Approves Green Impact Exchange as First U.S. Sustainability-Focused Stock Exchange
Follow SDG News on LinkedIn
