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At this point, we probably don’t need to tell you that climate change is a big issue. The science is settled - more carbon emissions equates to a hotter planet. We not only need to reduce the carbon (CO2e) intensity of our entire economy as quickly as possible, many scientists now agree we also need to start pulling carbon (CO2e) out of the atmosphere.
One of the most effective ways of facilitating carbon reduction and removal is through carbon credits, a digital representation of the reduction or removal of one metric ton of carbon dioxide emissions. If you develop a project that reduces or removes carbon dioxide or carbon dioxide equivalent GHG emissions, every ton of CO2 equivalent emissions reduced or removed results in the creation of one carbon credit. A carbon credit becomes an offset once it has been retired for offsetting purposes.Thus, these carbon credits become an important financing tool as project developers can then sell these credits as offsets to fund their projects.
However, a key problem with the carbon market is that it is extremely inefficient. While the capital needed to fund these projects is readily available, current market dynamics make it nearly impossible for this type of solution to scale. Today’s voluntary carbon market is dominated by over-the-counter brokers selling on rate sheets – without exchange or market mechanisms – relying on individual purchase agreements for each transaction. There is little transparency or efficiency; the market is fundamentally broken.
Recognizing this opportunity for an open, transparent, and liquid market, Flowcarbon was launched as an open-source protocol that leverages a two-way bridge for carbon credits, which allows credit owners to bring carbon credits on and off chain.