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Million Euro start-up uses Algorand to fight climate change

Million Euro start-up uses Algorand to fight climate change

Climatetrade intends to build its marketplace for CO2 compensation on the Algorand block chain.

The block chain marketplace Climatetrade wants to base its new CO2 compensation platform on Algorand. Algorand is a crypto-currency project that aims at scalability and transaction performance. Climatetrade announced on Wednesday that the platform by Crypto Engine has chosen the Algorand block chain for its carbon offset marketplace. This marketplace is designed to help organisations achieve carbon neutrality, which is considered a key pillar in the fight against climate change.

Climatetrade chose Algorand for its „flexible architecture, low transaction fees and scalability of transaction performance“, said CEO Francisco Benedito.

Important in the age of Corporate Social Responsibility

Algorand is ranked 49th among the largest crypto-currency projects with a total market value of around USD 393 million. The ALGO token currently stands at approximately $0.34 US dollars.

Climatetrade was founded in 2016 and enables companies to offset their carbon footprint by purchasing carbon credits directly on the platform. It also produces organisation-specific sustainability reports, which are becoming increasingly important in the age of Corporate Social Responsibility (CSR).

CSR has also become a buzzword in the „investing with a conscience“ movement. CSR investments or strategies that take into account the environmental, social and governance factors of a company were once only a niche in the financial markets. Now it is an industry worth billions, according to Morningstar data.

Net inflows into CSR funds exceeded $71 billion in the second quarter, largely due to interest in sustainable investments.

Climatetrade is expected to raise €1 million in seed capital investments for its carbon marketplace. Borderless Capital, which finances „category leading companies“ using Algorand technology, is one of the investors.