Last week, EY announced the launch of its new EY OpsChain ESG platform for carbon credits trading on the Ethereum blockchain.
The aim of the new platform, which is currently available in its beta version, is essentially to bring more transparency and traceability to the voluntary carbon markets (VCM) through tokenization.
EY’s new solution will help address the needs of businesses and organizations struggling to measure and keep track of their CO2 emissions in an accurate way.
Furthermore, it will give all stakeholders, including consumers and regulators, a transparent view within the carbon credit ecosystem, where credits can be traced, in order to avoid many of the current issues surrounding VCMs.
EY OpsChain ESG tokenizes the emissions of different products, through which it helps users gain a clear understanding of their own carbon footprint, which can, in turn, allow them to make informed decisions on their path to achieving climate objectives.
The new platform is built to the standards of InterWork Alliance for Carbon Emissions Tokens, which means that a company’s carbon emissions are independently verifiable through the integration of key emissions data validators.
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Another key feature of EY OpsChain ESG is its ability to allow businesses to prove the authenticity of the carbon credits they purchase in order to reduce their climate impact.
Paul Brody, head of EY Global Blockchain, commented on the role that blockchain plays in linking “business processes and global ecosystems across enterprise boundaries”.
“Detailed traceability allows for tracking of emissions inventory through tokenization including the ability to link carbon output to specific product output. By using carbon credit tokens, either created or sourced on the market, enterprises can now have visibility into both their actions towards decarbonization,” Brody said.
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