Indonesia explores greener use cases for the blockchain technology?
Many countries offset CO2 emissions with carbon taxes or emissions trading schemes. Source: unsplash.com
The Indonesia Stock Exchange (IDX) has signed a memorandum of understanding with the Singaporean Metaverse Green Exchange (MVGX) about IDX’s emission trading scheme. In the frameworks of cooperation, MVGX will help IDX build a carbon registry and exchange with blockchain as the infrastructure layer.
Indonesia has joined dozens of countries estimating their environmental accountability with a financial mechanism. Currently, over 40 countries across the globe are compensating for emissions through carbon taxes or emissions trading schemes (ETS).
However, such schemes face a double-counting issue when two entities or countries claim the same climate action.?Using blockchain in carbon trading solves the abovementioned problem, providing transparent record-keeping.
Offering SaaS to commercialize carbon credits, MVGX and IDX can strengthen the country’s sustainability commitments.
At the same time, blockchain cannot fully solve the incentive issues around carbon credit offsetting.
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Nina Bobro
Nina is passionate about financial technologies and environmental issues, reporting on the industry news and the most exciting projects that build their offerings around the intersection of fintech and sustainability.
