Panelists Emilie Allaert, Project Lead at Luxembourg Blockchain Lab, Andres J. Ruiz-Vargas, Head of Research at Codos Foundation, Markus Ament, Co-founder of Centrifuge, Gabriel Ibghy, General Council of HIVE Blockchain Technologies LTD, and Dana Gibber, Co-Founder & CEO of Flowcarbon, discussed ESG and blockchain at the 8th EBC!
How Can Blockchain Technology Be Used in ESG?
Dana thinks that the key is to find specific use cases to utilize blockchain technology to solve specific problems. She and Markus both think the existing carbon markets are inefficient. It can be improved by building a new system on the blockchain for creating, monitoring, trading, and retiring carbon credits.
Andres, on the other hand, shares his work at the Codos Foundation. They are working on Proof of Sustainability and rewarding people that conduct sustainable actions with tokens. For example, the Codos App encourages people to commute by train, bus, or bike to reduce their carbon emissions.
“There is a part where the technology needs to evolve more. And the more it evolves, the easier it would be for people to adopt it and play with it.”
– Andres J. Ruiz-Vargas, Head of Research at Codos Foundation
Is Your Business Affected By Criticism of Bitcoin?
Representing HIVE, Gabriel mentioned that they are using sustainable resources to mine digital assets like Bitcoin. The company provides demand response and grid balancing services to municipalities, monetizing stranded power and contributing positively to the utility’s balance sheet through blockchain technology.
Even though there has been quite a lot of criticism of Bitcoin’s energy consumption, Gabriel believes that bad press exists in all industries, and he thinks bad press starts with misunderstanding and when the business is further away from the communities.
Speaking from HIVE’s experience, the company connects with the local community, participates in their activities, and actually benefits the residents, so it’s receiving positive feedback from the local media.
How Do You See ESG and Blockchain in the Next 5 to 10 Years?
Markus expects the carbon markets to grow 50x in 5-7 years, and he foresees that blockchain technology plays a substantial role in the circular economy and biodiversity.
Gabriel thinks that the use of sustainable energy for digital asset mining can lead to more integration in institutions like universities and greenhouses. He also believes that there will be more and more projects in the future that make sense for both utilities and consumers.
Apart from carbon credits, Dana thinks that other types of environmental commodities, such as biodiversity credits, are also growing in importance. She argues that these markets are inefficient and experiencing rapid growth, and blockchain can provide infrastructure to make them more transparent and liquid.
Andres is convinced that the panelists on stage now are not the only ones working on ESG and blockchain, and he’s excited to see how the market will develop and what kind of innovative competitors they will have in the coming years.