Gold Standard announces proposals to allow creation of digital tokens for carbon credits

Gold Standard launches consultation on proposals to allow the tokenisation of carbon credits

Gold Standard announces today the launch of a consultation on how the creation of digital tokens representing Gold Standard credits using blockchain technology should be managed. The consultation seeks views on the conditions that could be applied to determine whether to provide consent to organisations who wish to create such tokens.

Earlier this year, Gold Standard updated its terms of use to clarify that the creation of tokens, crypto-currencies, or other digital instruments to represent Gold Standard carbon credits was not permitted without express written consent. Following the consultation launched today Gold Standard intends to introduce a new process to provide consent to organisations seeking to create digital tokens.

Gold Standard CEO, Margaret Kim said: “At Gold Standard we recognise that blockchain could bring innovation, transparency, and greater finance to the carbon market. At the same time, it is important that we recognise and mitigate any potential risks. The responses to this consultation will allow us to establish a formal framework to permit and manage the creation of digital tokens representing Gold Standard credits on blockchain.”

In preparing this consultation, Gold Standard has considered the initial findings of IETA’s Task Group on Digital Climate Markets as well as feedback from members of its Working Group on Digital Assets for Climate Impact, announced in August 2022. This Working Group is part of a broader piece of work being undertaken by Gold Standard and partners to support the digitisation of the carbon market recognising that effective and inclusive digital solutions are essential to achieve the high-functioning, catalytic and inclusive carbon market needed to address the climate emergency.

The consultation document contains further information about the context, content, and timescale of this work. The consultation will run until 28 October. As part of this, a webinar will be held for interested parties to obtain more information on 28 September 2022 at 15:00 CEST (Central European Summer Time). Please register your interest in attending here.