Tokenized Carbon Credits

Abstract

Blockchains are well-suited for tokenizing, trading, and retiring voluntary carbon credits. However, tokenized carbon credits are a heterogeneous body of tokens on the blockchain, which hampers some key goals of the industry. We give a detailed exposition of the current state of tokenized carbon credits and the surrounding blockchain-based ecosystem, with the goal of clarifying current impediments to token interoperability and trading with high liquidity.