The tokenisation of carbon credits refers to the act of creating a digital representation of a carbon credit using blockchain technology. This can be applied in multiple different ways in the carbon market, some – but not all - of which are linked to crypto-currencies.
In May 2022, Gold Standard updated its Registry Terms of Use to clarify that the creation of tokens, crypto-currencies or other digital instruments or assets is not permitted without Gold Standard’s express written consent. This step was taken to ensure that Gold Standard can understand and manage any tokenisation of its credits in a responsible and cooperative way.
Since updating its Registry Terms of Use, Gold Standard has been considering the conditions and criteria that could be applied to determine whether to provide consent to organisations for the creation of digital tokens related to Gold Standard credits. In doing so, Gold Standard has considered the initial findings of IETA’s Task Group on Digital Climate Markets and taken into account feedback from members of its Working Group on Digital Assets for Climate Impact, announced earlier this month, as well as information from other stakeholders through bilateral meetings.
Gold Standard has always embraced the potential for technology to drive greater ambition, efficiency and transparency within the carbon market. We recognise the benefits that blockchain technology can bring within the carbon market, for instance to provide a secure record of data and ownership of carbon credits, and as a basis for platforms seeking to innovate and mobilise finance to support the carbon market’s development.
At the same time, we are mindful of the potential risks if tokenisation is permitted to occur in an uncontrolled way, and without formal coordination and terms of reference between Gold Standard and third parties creating digital tokens representing Gold Standard credits on a blockchain. This includes risks related to environmental integrity, IT security, regulatory uncertainty and reputational harm.
It is for this reason that we are seeking to establish a formal framework and conditions to permit and manage the creation of digital tokens representing Gold Standard credits, which is the subject of this consultation.
In May 2022, Gold Standard updated its Registry Terms of Use to clarify that the creation of tokens, crypto-currencies or other digital instruments or assets is not permitted without Gold Standard’s express written consent. This step was taken to ensure that Gold Standard can understand and manage any tokenization of its credits in a responsible and cooperative way.
Since updating its Registry Terms of Use, Gold Standard has been considering the conditions and criteria that could be applied to determine whether to provide consent to organisations for the creation of digital tokens related to Gold Standard credits. In doing so, Gold Standard has considered the initial findings of IETA’s Task Group on Digital Climate Markets and taken into account feedback from members of its Working Group on Digital Assets for Climate Impact, announced earlier this month, as well as information from other stakeholders through bilateral meetings.
Gold Standard has always embraced the potential for technology to drive greater ambition, efficiency and transparency within the carbon market. We recognise the benefits that blockchain technology can bring within the carbon market, for instance to provide a secure record of data and ownership of carbon credits, and as a basis for platforms seeking to innovate and mobilise finance to support the carbon market’s development.
At the same time, we are mindful of the potential risks if tokenization is permitted to occur in an uncontrolled way, and without formal coordination and terms of reference between Gold Standard and third parties creating digital tokens representing Gold Standard credits on a blockchain. This includes risks related to environmental integrity, IT security, regulatory uncertainty and reputational harm.
It is for this reason that we are seeking to establish a formal framework and conditions to permit and manage the creation of digital tokens representing Gold Standard credits, which is the subject of this consultation.
How to submit your consultation
Gold Standard is now inviting views from stakeholders on the framework that we plan to establish to provide consent to organisations seeking to create digital tokens representing Gold Standard credits, using blockchain technology. On the pages that follow, we have outlined the eight categories in which we intend to apply conditions, as part of our overall framework.
We invite comments from stakeholders across these categories, as well as general comments on the approach Gold Standard should take with respect to tokenisation. In some areas, we are seeking views on whether stakeholders agree with our proposed approach; in others, we are seeking information and evidence to inform the approach that we ultimately take.
Finally, we are aware that stakeholders may be submitting feedback and comments on this topic to other standard-setting bodies. In the interest of efficiency, we will accept and consider feedback that may have been prepared for any separate consultations.
To respond to this consultation please complete the form below , or should you prefer, you can also submit responses via email to [email protected].
If you have any questions or would like to speak directly to the Gold Standard Secretariat, please contact [email protected].
Provide your feedback here.
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