An environmental startup is seeking to tap IBM Blockchain to simplify offsetting environmental footprints for companies.

Veridium Labs is teaming up IBM to leverage its blockchain technology and expertise to “transform carbon credits into a new type of fungible digital asset that can be redeemed and traded on the Stellar network with less friction.” According to the official release, the startup’s solution for carbon credits will cover the entire process of carbon footprint accounting and offsetting.

Blockchain-based digital assets can help overcome the shortcomings of existing processes relating purchasing carbon credits. It would help enhance trust and integrity in the flow of information among trading partners and network participants.

“The project builds upon IBM's work in both public and private blockchain networks to enable clients and developers to engage in token-related networks,” the release said. “Integrating the entire process of carbon accounting and offsetting into a digital token on a public, permissioned blockchain network can help make measuring environmental impact, transferring ownership rights, and redeeming the underlying carbon offset more efficient.”

Veridium plans for its initial tokens to represent carbon accounting and offsetting backed by environmental assets. This includes Triple Gold REDD+ credits from InfiniteEARTH, which authored the first REDD+ forest carbon accounting methodology, a protocol now embodied in the UN Paris Agreement.

“By using a public, permissioned blockchain network, we can help Veridium create a new sustainable marketplace that is good for business and good for the world," said Bridget van Kralingen, Senior Vice President, IBM Industry Platforms and Blockchain. "This is a great example of how industries are being reinvented by blockchain, in this case establishing a far more efficient and transparent approach to carbon accounting and offsetting that will empower individuals and companies to play a role in improving our environment."