World Bank Affiliate IFC Backs Blockchain-Based Platform for Carbon Offsets

International Finance Corporation (IFC), a World Bank Group member focused on investment in less-developed countries, is teaming with energy-focused blockchain platform Chia Network on the Carbon Opportunities Fund.

• Also involved are sustainability finance company Aspiration and biodiversity investor Cultivo, and the fund will provide blockchain-based carbon credits purchased from projects chosen by those two companies.

• Carbon offsets are a means for companies to compensate for their emissions by purchasing credits that fund projects in tree planting or renewable energy.

• "This new framework that will use new blockchain technologies is an innovative way for capital markets to fully engage in carbon credit trading in a transparent, secure, fair and beneficial manner," said Paulo de Bolle, senior global director at IFC.

• Reuters reports the fund as being seeded with $10 million.

• Blockchain technology would appear to be a natural medium for carbon offset-related projects due to this transparency offered. However, for many blockchain is tainted by its association with the energy-heavy mining involved in cryptocurrency mining, the process by which new coins are released into the network.

Read more: Crypto Carbon Credits: Slapping Lipstick on a Pig