Home Cryptocurrency News COTAP Becomes the First Carbon Offset Provider to Enable Funding Offsets with Cryptocurrency

COTAP Becomes the First Carbon Offset Provider to Enable Funding Offsets with Cryptocurrency

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WALNUT CREEK, Calif., June 4, 2021 /PRNewswire/ — The worldwide non-profit Carbon Offsets to Alleviate Poverty (COTAP.org) introduced it has turn into the primary carbon offset supplier to just accept all main cryptocurrencies. It joins over 200 different nonprofits which have partnered with The Giving Block to allow cryptocurrency donations, and to make sure that they’re tax-compliant, safe, and routinely transformed into money. COTAP can now use cryptocurrency donations to assist its high-quality, verified carbon offset applications in six low-income international locations, creating a novel solution to mitigate carbon emissions whereas producing life-changing revenue for among the world’s poorest communities. 

“It is a vital first on a number of ranges,” stated COTAP founder and CEO Tim Whitley. “The voluntary carbon offset market is exploding, with demand at an all-time excessive, and so is the market and demand for cryptocurrency. However there are nonetheless obstacles to entry for firms and individuals who need to offset their carbon emissions, so we’re working to deliver them down nonetheless we are able to, together with by being the primary to take cryptocurrency donations to assist offset tasks. On the identical time, cryptocurrency, and Bitcoin particularly, has an enormous carbon footprint. That is a major problem. By making it attainable for the primary time to make use of cryptocurrency to assist assist to high-quality offsets that decrease emissions and combat poverty, we hope to assist mitigate it.” 

“Crypto goes to proceed to develop explosively, so if we need to cut back its local weather influence, we will want a solution to decarbonize it,” Whitley stated. “Switching it to sustainable power sources can be nice, however will take time. In the meantime, if you wish to deal with the carbon footprint of the cryptocurrency you are holding, otherwise you need to use it to offset the carbon emissions of different actions, you now have that possibility. By donating only a fraction of 1 crypto coin, a donor can doubtlessly counteract that coin’s emissions many occasions over.”

Cryptocurrencies are surprisingly carbon-intensive. As a result of it is determined by high-powered, energy-guzzling computer systems, Bitcoin for instance makes use of the identical quantity of power as small international locations like the Netherlands, producing an estimated 22-23 million metric tons of carbon dioxide emissions a yr. That is the rationale for the market-moving controversy about whether or not Elon Musk would or would not settle for Bitcoin as fee for Tesla electrical automobiles, a minimum of till Bitcoin “mining” transitions to sustainable power sources. On the identical time, Bitcoin and different cryptocurrency utilization and acceptance are increasing throughout many industries. 

Firms of any dimension, and people wherever on the planet, can work with COTAP to offset as little as 1 metric tonne of carbon emissions. Within the U.S., people do not pay capital positive aspects tax on cryptocurrency used to make COTAP offsetting donations, and relying on their revenue degree and whether or not or not they itemize, they might additionally get an revenue tax deduction.

COTAP’s carbon offset tasks counteract carbon emissions by nature-based options together with tree planting, agroforestry and forest safety. They’re all positioned in areas the place revenue ranges are lower than $2 per day, and are licensed below Plan Vivo, the world’s longest-standing voluntary commonplace for forest carbon. Plan Vivo stipulates not solely that rural communities should truly personal their carbon offset tasks, but additionally that they have to obtain a minimum of 60% of the carbon revenues.

Donations to COTAP are used to fund these high-quality, verified carbon offset tasks. 90% of internet proceeds from carbon offsetting donations it receives goes to COTAP’s six Plan Vivo-certified tasks in Nicaragua, Uganda, India, Fiji, Indonesia, and Mexico. These tasks in flip share 60% or extra of the revenues with taking part low-income communities. For instance, a $5000 offsetting donation made out to “All Initiatives” would pay every of COTAP’s six tasks $750 for 55.56 metric tonnes’ value of their carbon credit, and generate a complete of a minimum of $2,700 in revenue for poor communities. 

Contact:  Stephen Kent, [email protected] 914-589-5988


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