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“Carbon offset” using blockchain technology 4 Reasons to Innovate Various Businesses

The power of digital transformation to spur global CO2 reduction About carbon offset In recent years, the “carbon offset” approach has become a common phrase among major companies.In order to put this system into practice, major companies are actively promoting participation in the “J-credit system” led by the Ministry of the Environment, major Japanese trading companies, logistics and retail businesses. However, to participate in this system, complicated application procedures and complicated certification procedures are major issues. Attempts are being made to solve them with blockchain technology. Therefore, our topics this time are why the “carbon offset” and “J-credit system” are drawing attention and an introduction to blockchain technology that has the potential to solve various issues. “Carbon offset” that gives “creditability” to CO2 reduction To explain carbon offset, “It is a concept of compensating for greenhouse gas emissions such as CO2, which cannot be avoided in daily life and economic activities, and investing in greenhouse gas reduction activities commensurate with emissions. “(Quoted from the official website of the Ministry of the Environment in Japan) In other words, it is a system that gives credits to the amount of invisible CO2 reduction is “carbon offset.” (See the figure below) How “carbon offset” works For example, to reduce the emissions from three factories and 100 trucks owned by Company A, it is common to first determine the kinds and amounts of emissions created and to then make efforts to reduce them based on those activities. However, this task cannot be covered by that one company alone. To offset some or all of these emissions that cannot be reduced, credits with others are calculated to create a “carbon offset”. The method may be applied […]