Zilliqa, GMEX to launch blockchain-powered carbon offset platform

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Layer-1 blockchain Zilliqa has partnered with market infrastructure vendor GMEX and its ZERO13 initiative. Through the collaboration, they aim to launch a consumer-focused carbon offset platform that uses EVP, a blockchain-based currency, to represent carbon offsets.

The platform will leverage Zilliqa’s integrated infrastructure, blockchain technology and GMEX’s multi-asset trading capabilities. The project aims to allow everyone to participate in building a greener future.

“In the age of information and digital transformation, our partnership with GMEX ZERO13 represents a conscious step towards a greener future. Through this platform, every individual can be a stakeholder in the global fight against climate change,” Zilliqa EO Matt Dyer said.

The platform will allow users to use their assets to fund certain environmental projects, allowing them to influence which initiatives their offsets go toward directly. Targeting eco-friendly businesses and environmentally conscious users of Zilliqa and GMEX, the project is expected to boost ZIL, Zilliqa’s native token, in the long run.

“By bridging the gap between carbon credit producers and environmentally conscious consumers, we are ushering in a new era of sustainability. Leveraging Zilliqa’s eco-friendly blockchain, we aim to redefine the consumer experience, making carbon offsetting not just accessible but also engaging and empowering,” Dyer added.

Features of upcoming platform

The upcoming platform aims to offer a collaborative space for businesses and environmental initiatives. Users will be rewarded with EVP tokens every time they purchase from partner brands. These tokens can then be used to fund environmental initiatives.

EVP tokens that reach their expiration dates before being invested in a green program will either be burned or reverted to their original owners.

“The era of passive consumerism is behind us, and our partnership with GMEX ZERO13 crystallizes this vision, offering a direct, transparent, and impactful way for consumers to play a part in the larger environmental narrative,” Ziliqa chairman Mark Hemsley said.

Supply chain management

The use of blockchain technology in the project is expected to inspire the supply chain management sector to join the efforts to combat climate change. By recording every step in the supply chain, blockchain technology can help eradicate deforestation, prohibited fishing and exploitative labor practices.

Zilliqa and GMEXhopet their initiative will present a real opportunity to fight climate change in the supply chain area. GMEX Group and ZERO13 chairman and CEO Hirander Misra commented that the current way of doing carbon credits needs to change to allow better alignment of businesses and their customers.

“Our partnership with Zilliqa helps achieve exactly that: to transparently digitally connect high-quality supply-side projects with consumer-led and associated corporate demand in a way that restores trust in the market and introduces innovation not previously seen,” he said.

Blockchain against climate change

Zilliqa’s announcement comes amid a race to leverage blockchain technology to help combat climate change. Earlier this month, the Bank for International Settlements (BIS) announced the “COP28 UAE TechSprint.” The initiative calls for industry players to develop climate change-mitigation solutions built using artificial intelligence, blockchain and Internet of Things (IoT) technologies.

Meanwhile, the European Commission on Tuesday awarded €800,000 to fund a study that addresses the environmental impact of cryptocurrencies and related technologies. It highlighted that crypto-mining can be an energy-extensive process “depending on the consensus mechanism used to validate transactions.”

Governments, organizations and industry players around the world agree that it is high time the crypto industry adopts a greener approach to its practices. Last year, Bitcoin mining alone contributed to 0.1 percent of global greenhouse production.

Per the Paris Climate Accords, the rise in mean global temperature must be kept below two degrees Celsius above pre-industrial levels to keep the planet habitable. Preferably, the increase should not be higher than 1.5 degrees Celsius. To do so, global greenhouse gas emissions must be cut by half.