Carbon Credits, Cryptocurrency, and Cheeze-Its
While Cap and Trade programs can be useful, depending on what state you’re in, it’s important to remember that they are currently not viewed as an absolute fix to the carbon emissions issue.
A company called Flowcarbon is trying to change that. Flowcarbon converts carbon credits into digital tokens that are usable on a blockchain. Flowcarbon is backed by WeWork founder Adam Neumann, which alone may cause one to pause and think twice about purchasing from a company that is backed by someone who has been surrounded by so many legal woes. Secondly, cryptocurrencies are still unregulated. In addition, we have recently seen the volatility cryptocurrency can be exposed to, with Bitcoin dropping in value 60% over the last 7 months.
Fortunately, Smith Engineering has licensed engineers working in a regulated industry, specializing in performance improvement solutions for Central Energy Plants and large building energy users; and can help cut down on your buildings’ carbon emissions by leveraging efficiency, therefore reducing the need to buy carbon credits!
In this PopSci article, Lee Reiners, executive director of the Duke Global Financial Markets Center says, “Flowcarbon combines two of the most hyped technologies, so-called feel-good technologies, which is blockchain and carbon credits…It may very well be a good business, but that doesn’t necessarily mean it’s a good thing for the environment or for the climate.”
As well-intended as this idea may be, we run into a similar problem as LL154, the all-electric building law in New York City, and its ostensible attempt to cut down on carbon, while in the meantime receiving electricity from fossil fuels. But, in this case, Flowcarbon is utilizing a cryptocurrency. While not all cryptocurrencies are mined, cryptocurrencies generally, are notorious for producing large amounts of carbon due to its mining practices. Who knows, this could completely change the game for the carbon emissions trading market as we know it, or this might be as good of an idea as Taco Bell’s Big Cheez-It Crunchwrap Supreme!