VeChain (VET)
one of the first smart contracts platforms to focus on supply chain management, is also leading the charge in driving change, especially in environmental conservation.
According to VeChain, their ambition is to leverage the power of the blockchain to address pressing issues related to climate change and ultimately help reduce carbon emissions.
Smarts Contracts A Game Changer In Carbon Credits Trading
In a recent interview, Sunny Lu, the CEO of VeChain, noted that through the blockchain, especially smart contracts, it is now easier to incentivize the reduce of carbon emissions.
When it comes to carbon credits from EVs, we’re talking about real value. A typical EV might save around $50 per year in CO2 emission reductions—doesn’t sound like much, right?
CEO @sunshinelu24 explains how Web3 is a game-changer. Using traditional methods to verify and record… pic.twitter.com/qntkwwyh9J
— VeChain (@vechainofficial) September 17, 2024
The co-founder said that innovations like carbon credits trading make it cheaper to incentivize those who choose to reduce carbon emissions by using electric vehicles, and smart contracts have made the process even more efficient.
Lu stated that carbon credits from electric vehicles can usually lead to a $50 annual savings in carbon emission reduction. Using web2 methods, trading firms would have to spend much more than the savings realized.
However, there are substantial gains when web3 is in play, and smart contracts operating from platforms like VeChain are in play. Because of this, the CEO said, “verification is efficient” and “incentivization happens instantly–at a fraction of the cost.”
As the world focuses on sustainability, there is a growing need to reduce emissions. This involves moving away from non-renewable energy sources, such as coal plants. In response to global pressure, China has banned crypto mining, stating that the presence of these operations incentivizes the use of fossil fuels as the primary energy source.
Carbon credits are a system that allows companies and countries to reduce carbon emissions whenever they invest in other projects that reduce or completely eradicate their emissions elsewhere. This system’s dictates aligned with the ambition of achieving what was laid out in the Paris Agreement.
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VeChain Quality Partnerships, When Will VET Price Recover?
VeChain is already at the forefront. It has partnered with BYD, an electric car manufacturer, to create a system for rewarding drivers with carbon credits for efficient driving habits. They also joined forces with DNV GL to create a carbon credit solution.
Nonetheless, despite their efforts, VET, the native currency of VeChain, remains under pressure. After soaring to record highs in April 2021, the coin is down -92%, according to Coingecko data. It remains under pressure, looking at the VETUSDT price action in the daily chart.
(VETUSDT)
VET must find support at around $0.020. If bulls push higher, breaking $0.025, there could be room for growth in the coming days.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
