Web3 is a term that summarizes cryptocurrencies and blockchain-based technologies. Web 3 is currently in the spotlight as energy companies try to determine whether using these technologies is harmful to the environment. The World Economic Forum (WEF) decided to consider the technologies by launching an initiative to see if they could help in the current fight against climate change.
Web3 includes technologies such as blockchain, cryptocurrencies, and NFTs. It is an umbrella term for a vision of a new and better internet. The coalition members will explore the positive impact these technologies can have on the environment. The members will assess Web3 to solve environmental and social challenges.
The coalition launch comes at the right time, given the urgent need to help decarbonize cryptocurrencies and ensure the industry is part of the climate change solution. We need clarity on regulation that fosters Web3 innovation, protects consumers, and improves financial inclusion.
The Crypto Sustainability Coalition
The ‘Crypto Sustainability Coalition initiative comprises 30 companies, educational institutions, and other institutions. These include cryptocurrency-related projects such as Solana, Avalanche, Circle, NEAR Foundation, Ripple, and the Stellar Development Foundation.
It is convening running businesses to address three issues:
- Energy use
- Web3’s capacity for climate action
- “On-chain” carbon credit
The Crypto Sustainability Coalition conducts research, compiles, and highlights industry standards. It handles best practices and concrete examples of actions. It demonstrates how Web3 technologies can support the most vulnerable communities to the impacts of climate change.
The overall goals of the Coalition are to promote a broader awareness campaign. The focus is on the potential and capabilities of Web3. The aim is to inform governments on how they regulate these technologies and to invest in development and research.
An essential task of the Coalition is to analyze the energy and material consumption of the crypto industry to understand its impact on climate and nature. The group plans to explore how Web3 can help countries reach lower carbon emissions rates.
The co-founder of ReSeed Carbon Assets and co-chair of the Coalition Working Group makes a good home for carbon credits. Reseed Carbon Assets is the company that sells ReSeed Carbon Protection Credits.
ReSeed Carbon Protection Credits are digital tokens that refer to agricultural land blocks with an estimated tonne of carbon stored in vegetation and soil.
WEF Launches Accelerator to Boost Crypto-Enabled ESG Efforts
The World Economic Forum has partnered with CoinDesk to launch a Crypto Impact and Sustainability Accelerator. The aim is to shape the future of environmental, social, and governance (ESG) initiatives powered by cryptocurrencies.
The initiative will bring together key players and industry leaders to accelerate progress towards his ESG goals for the cryptocurrency ecosystem and shape a more inclusive future, the companies said in a joint statement on Friday.
The initiative supports the development and responsible use of cryptocurrencies. It bridges the understanding gap between the public and private sectors. It provides a cohesive narrative highlighting how the crypto sector can contribute to ESG.