The flurry of activity coincided with a substantial rise in the price of the underlying offsets, which are supposed to reflect one tonne of carbon avoided or removed from the atmosphere.
Nearly 20 million carbon credits – which businesses use to offset greenhouse gas emissions – have been turned into digital tokens since October.
Carbon analysts say the bulk-bought ‘junk’ credit by crypto traders in recent months was lower than in years before.
Potential buyers were stunned by concerns that these older credits, which originated before 2010, may not actually represent the carbon savings they were promised.
Clima says it runs on the Polygon blockchain, which uses a less energy-heavy “proof of stake” system to mint coins than a “proof of work” system, which requires complex puzzles to be solved.
I’m not like an environmental giant.” Concerns have also been raised about the anonymity of the founders of Clima, who use pseudonyms such as ‘Archimedes’ and ‘Dionysus’.
Carbon market experts have struggled to understand the impact the token could have on the offset market and its role in limiting global warming.
Some fear that the focus is crypto first, climate second, and indicates the energy-intensity of certain parts of the crypto universe.