The system should clarify the carbon credits market and help developing countries raise climate finance quickly and affordably
The World Bank and its partners including Singapore launched a global carbon tracking system. Source: unsplash.com
The new database developed by the World Bank and partners is called the Climate Action Data Trust (CAD Trust). It aims to unify all the project and carbon credit data in one place and make it free to the public.
Carbon credits are sold to polluters to offset their emissions as a way of helping them reach net-zero objectives to limit global warming. Separate countries and private entities are setting their own registers, but a lack of data sharing leads to poor market transparency. Besides, many companies face a limited credit supply and questions over the quality of projects.
The CAD Trust, co-founded with the IETA, will provide a single platform listing various existing carbon offset registries. The tool will collect and store metadata using decentralised blockchain technology. It should empower companies and governments to share and utilise carbon-related data.
Besides, the new portal would allow developing economies to save costs for accessing the market, compared to setting up their own systems.
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