The submission of public comments from more than 30 blockchain-based organizations, led by the Block Infrastructure Carbon Reduction Working Group (BICOWG), marks the first time that the growing “regenerative finance” industry (ReFi) has been directly involved in the federal policy-making process.
SAN FRANCISCO, May 9, 2022 (GLOBE NEWSWIRE) – Today, in response to a request from the White House Office of Science and Technology (OSTP) Office for Information on the Energy and Climate Implications of Digital Assets, the Carbon Blocking Working Group for Block Infrastructure Together with more than 30 projects using blockchain technology to influence the climate independently and jointly submitted public comments for consideration to the OSTP. The applications signal the entry of the fast-growing ReFi industry into federal policy discussions over future regulatory frameworks for digital assets and blockchain technology.
Led by the Blockchain Infrastructure Carbon Offset Working Group (BICOWG), whose membership includes top ReFi projects such as KlimaDAO, Offsetra and Regen Network, as well as representatives of major blockchain infrastructure providers such as F2Pool for Bitcoin mining pools and shareholder proof-of -stake validators, the industry today unveiled its official response to the OSTP’s request for information along with President Biden’s Executive Order on Ensuring Responsible Digital Asset Development. Key industry recommendations include:
BICOWG’s 5 recommendations
Recommendation 1: Adopt expert advice and blockchain solutions adopted for carbon markets to ensure proper verification, governance and transparency.
Recommendation 2. Regulate in favor of mechanically resilient methodologies that provide chain solutions that can meet the need to improve today’s traditional carbon markets.
Recommendation 3: Allow Web3 tools to help carbon registries reduce application audit costs as close to zero as possible and discourage opaque audit processes.
Recommendation 4: Support the integration between existing standard-setting bodies and Web3 technologies through the articulation of their standards to be adopted in the Web3 ecosystem. This may include managing cryptographic keys and monitoring compliant protocols that communicate with each other in a blockchain application environment that can be compiled in a climate ecosystem.
Recommendation 5: Support the Web3 carbon bridge sector in its task of increasing the transparency and integrity of carbon accounting systems by challenging carbon registers.
Daniel Hwang, of BICOWG, said: “The climate crypto ecosystem of operators within the tokenized carbon market has understood the responsibility to address the climate impacts of blockchains and has made significant innovative steps in financing climate impacts and new climate-neutral products.”
BICOWG invites officials and organizations to a comprehensive dialogue on data points and use cases at the intersection of digital assets, climate change and blockchain technology.
Blockchain technology brings unparalleled transparency, availability and functionality to carbon markets. In the last 6 months, more than $ 2 billion worth of carbon has been traded on blockchain. In the process, the market has established clear prices and deep liquidity for carbon investing in environmental projects that create real action in the fight against climate change, ”said Sy Zygy, Product Manager at KlimaDAO. Said Sy Zygy, co-founder of KlimaDAO.
BICOWG believes that organizations that use Web3 tools to fund climate change reversals are in a unique position to help regulators determine how to achieve the goals set by the Biden administration.
Contact Natachu Rousseau at BICOWG Press Office for more information.
Figure 1: BICOWG
Carbon Compensation Working Group for Blockchain Infrastructure
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