While the move to proof-of-stake (PoS) helps change the narrative that blockchains are harmful to the environment, the Web3 ecosystem can still do a lot to combat climate change, says Celo CEO Marek Olszewski, Ethereum Layer 2 scaling solution .
Cointelegraph editor Zhiyuan Sun spoke with Olszewski about the threat of climate change, the benefits of using blockchain-based systems for carbon offsets, and the various ways projects can offset their carbon footprint.
Olszewski said that as climate change continues to pose a threat to humanity, companies and projects are moving toward becoming carbon neutral. He said:
“Climate change remains a systemic threat to our species. I think as a society we owe it to ourselves to do what we can. I suspect every project and every company in the next decade is likely to move to carbon neutrality.”
Celo executives believe the broader Web3 ecosystem has made “real strides” in being able to change the narrative about blockchain’s environmental impact. Last year, the community celebrated the Ethereum merger, which saw the blockchain move from the energy-intensive Proof-of-Work (PoW) consensus to the greener Proof-of-State (PoS) mechanism.
Olszewski believes that the merger and the actions taken by various teams within Web3 to offset or commit to offset their carbon footprint have helped the field in two ways. First, it attracts people who were previously put off by the perception that blockchain is bad for the environment. Secondly, the executive emphasized that this leaves room for innovation in the regenerative finance (ReFi) ecosystem.
“At least, I think we’re starting to change that narrative, and I think that’s really good for the cryptocurrency industry because I think it attracts more people (…) and it creates a Safe innovation space in the RefFi ecosystem,” said Olszewski.
related: How blockchain can tackle greenwashing and contribute to climate action
In addition to this, the executive also mentioned some of the benefits of having an on-chain carbon offset system compared to traditional methods. Olszewski said the traditional carbon credit system suffers from a lack of transparency. The executive noted that through blockchain, real-time transparency and verification that carbon offsets are still valid can be achieved. He said:
“Being able to link satellite data through on-chain oracles, you can bring that information and be certain that carbon offsets are doing what they claim to do.”
When asked about carbon credits and how blockchain-based projects can offset their carbon footprint, the executive cited several examples. Olszewski said that in addition to planting trees, a common way to offset carbon emissions, the executive cited restoring species habitats, direct air capture sequestration and using biochar as other ways to offset carbon emissions.
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