Like all thing crypto right now, it’s also been a tough time for blockchain based carbon credit protocols during the last quarter.
They have been subject to the same market pressure as the rest of the industry, which is struggling to regain its footing since the collapse of Terra.
The sector is also facing ongoing questions about the quality of the credits being traded inside the base carbon tokens.
In April, researchers at Carbon Plan found that 28% of the Verified Carbon Units traded in on the Toucan Protocol were from “zombie projects.”
The Paris Agreement prohibits the trading of credits from carbon offset projects registered before 2013. But these older projects are being traded on the Toucan protocol as recently as November last year.
The sector is also facing structural issues around retired credits too.
