Could Cryptocurrency Become A Key Player In The Fight Against Climate Change?

Melting ice caps, rising sea levels, an increasing probability and rate of natural disaster, and the pervasive feeling of doom; sometimes the concept of climate change can feel too large and overwhelming to even begin to think of possible solutions. This overwhelm makes sense too, considering the constant messaging around worsening circumstances, like reports released by NASA showing that the seas are rising by an average of 3.3 milliliters per year, fuelled by an average increased temperature of 2 degrees Fahrenheit since the late 19th century. 

These messages of doom and gloom are consistently contrasted with opinions from a concerning number of politicians and other prominent media and cultural figures who, despite having no scientific backing or education around the matter, sow stories that contradict the facts. This causes a high level of confusion among the public, turning what should be an urgent global issue into a politicized one that will likely be shuffled along until it is too late. 

For those of us who choose science over ego and opinion, a pervasive feeling of powerlessness and dread are invoked every time attention is turned to the inertia and inaction of official bodies, either in curbing harmful emissions or implementing strategies to reduce the greenhouse gasses already circulating in our atmosphere. As such, many are looking for actions they can take at an individual or grassroots level. However, aside from unplugging appliances when not in use, recycling, or taking public transport, what can the average person do to make an impact? 

The potential solution may come in an unexpected form: cryptocurrency. 

Although ‘Dogefather’ Elon Musk has made the climate impacts of cryptocurrency mining - a practice that consumes power comparable to that used by smaller countries like Malaysia or Sweden - well known, it could also be where the true fight starts. Better still, there’s the opportunity to make a quick buck for early adopters while also helping to curb the effects of climate change.  

A number of ambitious projects have started to emerge which claim to attack climate change through carbon sequestration. This not only has the potential to change the landscape of planet Earth, but also the carbon credit landscape which, as it stands, is expensive and inaccessible for everyday people due to high brokerage fees. Two such tokens include SavePlanetEarth, or SPE, and DOVU, or DOV. 

While DOVU is currently focused on offsetting the greenhouse gasses emitted during the cryptocurrency mining process, SPE is working to make carbon credits more accessible through a number of real-world initiatives. Launched in April of 2021, the fledgling cryptocurrency is looking to make a huge impact through a number of large-scale tree planting initiatives. A member of the development team and SPE spokesperson, Imran Ali, has confirmed that the project has already planted upwards of 15,000 trees, with an aim of one billion trees worldwide within ten years, of which 101 million trees are already contracted to be planted at the time of print. 

Despite the technological advancements of the past three decades, trees remain one of the most reliable and efficient forms of carbon sequestration. In fact, the average hardwood tree can sequester one ton of carbon dioxide in its first 40 years of life. According to a report by National Geographic, planting trees in an area roughly equivalent in size to the contiguous United States has the potential to erase the last 100 years of carbon emissions. SPE is a project making strides towards that. 

With tree planting projects confirmed and underway in both the Maldives and Sri Lanka, the project isn’t just aiming to plant any tree in these locations, but plant trees that have either ecological significance or industrial utility for the locals. Tree varieties include pepper, tea tree, jackfruit, durian, breadfruit, banana, banyan, coconut, rubber, cinnamon, ironwood, kumbuck and kitul. 

Each trees’ carbon sequestration rate has been analyzed and accounted for, so the volume of carbon sequestered is tracked and applied to the total amount of tokens available for purchase and held by users. Although the project is yet to be accredited by an official carbon credit regulating body, a single SPE token currently represents the offsetting of 0.000000221 tons of carbon dioxide. For now, the figure seems small, but as time progresses and more trees are planted, the carbon offset per token is projected to grow.

This new and accessible form of carbon credit trading means barriers to entry for individuals and smaller businesses are reduced. Typically, the purchase of carbon credits requires a broker, which can be prohibitively expensive. By offering an easy carbon credit trading access point to the global community, more and more people can place their support behind the project and start offsetting the greenhouse gasses they are producing. 

There’s also the potential to make a significant return on investment. As it stands, the carbon credit industry is growing at an unprecedented rate, with a report from S&P Global claiming a more than five-fold industry expansion since 2017. As more and more global events occur that increase demand for action against climate change, this industry has a strong potential for expansive and rapid growth in the coming decade. Ideally, the new cryptocurrencies finding innovative ways to tackle climate change will grow in tandem with the industry.

While a number of prominent financial figures have pleaded for caution among those looking to invest in the cryptocurrency space, there are a range of due-diligence actions investors can take when considering a token. These include: 

• Ensuring the identities and histories of developers are made public
• Engaging with projects that have locked liquidity
• Engaging with projects that have a clear roadmap and whitepaper
• Selecting projects which have undergone the audit process through a range of reputable bodies. Certik is considered the cryptocurrency auditing gold-standard
• Take the time to understand the model, and whether it allows for scalability and long-term growth
• Review the projects partnerships, ICO and profits

Although climate change is a definite cause for concern, it’s important to hold hope when thinking of the future. Science is constantly progressing with technology close behind, and while we’re sure to one day create a more efficient process that eliminates the harmful emissions from human activity, there are some actions that can be taken now to get a head start. Aside from physical actions like reducing meat intake, recycling, or using public transport, engaging with alternative methods, like cryptocurrencies, is an impactful and potentially profitable place to start.