Gold Standard Announces Proposals to Allow Creation of Digital Tokens for Carbon Credits

Gold Standard has announced 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 organizations who wish to create such tokens, according to Crypto Briefing.

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 recognize that blockchain could bring innovation, transparency, and greater finance to the carbon market. At the same time, it is important that we recognize 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 digitization of the carbon market, recognizing 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.