• Carbon blockchain executives argued that companies must understand why they are using carbon credits and how to make a real impact.
• Karen Zapata, the chief operating officer of carbon blockchain platform ClimateTrade, said that many companies still don’t understand how it works.
• She added that one should be less concerned about the pricing behind carbon credits and more about the impact.

At a panel discussion in Davos, Switzerland, moderated by Cointelegraph’s editor-in-chief Kristina Lucrezia Cornèr, several executives from carbon blockchain platforms discussed the increasing interest from companies in carbon trading. Karen Zapata, the chief operating officer of carbon blockchain platform ClimateTrade, highlighted the importance of understanding sustainability and the role of carbon credits.

Zapata recalled talking to a sustainability manager of a “big, big company” who told her he doesn’t know what a carbon credit is or “how it works”, but is being pressured by his marketing team to “move this forward.” She noted that companies won’t be able to communicate what they are doing with carbon credits to their community if they don’t “even understand” what it is.

Zapata emphasized that companies must not only understand why they are using carbon credits, but also how to make a real impact. She suggested that one should be less concerned about the pricing behind carbon credits and more about the impact. She explained that the price comes second once the positive impact is understood.

The executives also discussed how the blockchain could be used to trade carbon credits. They argued that the blockchain could bring much-needed transparency and trust to carbon credit trading. They noted that the blockchain could make it easier to track and verify the origin and quality of carbon credits, as well as reduce the risk of fraud and double-counting.

Overall, the panelists agreed that the use of blockchain technology could enable companies to make a greater contribution to the fight against climate change. However, they emphasized that companies must first understand why they are using carbon credits and how to make a real impact. Companies must also ensure that the carbon credits they purchase are of a high quality and have a positive impact.