–WARNING: See the note on the confusing maths at the bottom of the second Tweet
By Mathew Carr
Nov. 16-18, 2021 (LONDON): Crypto currencies are driving up the price of carbon credits, according to a key broker.
Verified Carbon Units, created under the voluntary carbon framework known as Verra, have jumped about 22% to $5.50 a ton in the past week, said Andrew Ertel, President/CEO at Evolution Markets Inc., speaking by phone on Nov. 16.
Billionaire and reality TV star Mark Cuban has revealed he is using blockchain technology to lock up carbon offsets, according to Cointelegraph, a news site.
In a Saturday Twitter thread sharing a story on KlimaDAO, the billionaire blockchain enthusiast stated that he has been buying $50,000 worth of carbon offsets and placing them on-chain as Base Carbon Tonnes (BCT) roughly every 10 days since the launch of KlimaDAO, the report said.
And then this Nov. 17:
KlimaDAO’s specific goal is to accelerate the price appreciation of carbon assets, according to its website.
“A high price for carbon forces companies and economies to adapt more quickly to the realities of climate change, and makes low-carbon technologies and carbon-removal projects more profitable.
“Through the KLIMA token, we will maximize value creation for our community and create a virtuous cycle of growth. Eventually, the KLIMA token (each backed by real, verified carbon assets) will function as a truly sustainable asset and medium-of-exchange, with real planetary value.”
Cuban’s Tweet was timed to the last day of COP26, the global UN climate talks.
Last week, the launch of the world’s first exchange-traded product (ETP) backed by physical EU carbon allowances (EUAs) took place on the London Stock Exchange.
SparkChange Physical Carbon EUA ETC (Ticker: CO2) provides investors with an easier way to invest in physical EU carbon allowances, or “permits to pollute” that the EU Commission forces industrial emitters to obtain to cap the level of pollution in Europe.
On Tuesday, EU carbon rose to a record 67.77 euros a ton on ICE.
On Wednesday, Carbon Pulse went with this:
Offset-cancelling crypto initiative eyes Paris carbon units
A carbon-backed crypto currency initiative that has driven the retirement of more than 10 million voluntary offset credits over the past month is considering expanding its scope to also include units under the Paris Agreement’s Article 6 once that market becomes operational, it said Wednesday.
(Updates with warning, second Tweet, Carbon Pulse, timing on last day of global climate talks)