Carbon credits are seen as one favorable way to help the environment, and the credits – as well as the businesses that work with them – are becoming more popular with investors.
The program was developed to reduce the amount of greenhouse gas emissions being sent out into the Earth’s atmosphere. Unfortunately, there have been some barriers preventing some from trading in these credits. However, there has been exciting news from the California startup Pachama regarding new technology that may be able to improve the manner in which carbon credits are given and traded.
Difficulties with the application process
In the world of carbon credits, there are essentially two categories. These include mandatory and voluntary offset markets. Take the example of a landowner wanting to certify and verify a forestry-related “voluntary” carbon offset project. The process would begin by having a forestry engineer come to the location and count all the trees by hand as well as measure their diameter. Even after the land has been certified, the landowner is in for weeks or months of paperwork.
There are difficulties with the application process for a carbon offset project. Pachama has developed technology to hopefully ease this process by not only making it shorter but less expensive for everyone involved. The technique introduced by Pachama will involve LiDAR, which uses satellite technology to take a real-time scan of a forest, thus allowing certification and verification of the land in a much more efficient manner.