The Universal Protocol Alliance (UPA) has launched a tradable carbon token on a public blockchain, as an alliance of crypto firms is introducing tokenized carbon credits for individuals to offset the amount of carbon dioxide they contribute.
It has been reported that the UPA stated that crypto users can “burn” the Universal Carbon token, UPCO2, to offset their carbon footprint.
However, they also have the choice of holding the tokens or trading them like any other digital asset using Uphold, a major US cryptocurrency wallet and trading platform, that’s also a member of the UPA.
The report said that one UPCO2 token represents a verified project in the rainforest reducing its carbon dioxide emissions by 1 metric ton annually, as the alliance employs digital certificates issued by Verra, an international standards agency, which allows certified projects to turn their greenhouse gas reductions into tradable carbon credits.
Matthew Le Merle, the Chairman of UPA, said:
“The projects we support through carbon credit purchases prevent deforestation in the Amazon, Congo Basin and Indonesia as well as other threatened rainforests. At a key moment for climate change, UPCO2 allows people worldwide to do good for the planet and potentially do well for themselves.”
Likewise, the voluntary carbon credits backing these carbon tokens “should eventually fetch the same price anywhere,” as they represent a metric ton of carbon per year, which is measured the same for any company seeking to offset its carbon footprint.
The “dollar-denominated, globally-recognized, fungible and perennial assets” should maintain their option value until used.
Thus, Le Merle said:
“Combine a digital asset with a rainforest carbon offset and give everyone in the world access. How could that not be a great idea?”