Consultation
UPDATED 11 Sep 2024

Conditions for consenting to tokenisation of Gold Standard-issued credits

  • CONSULTATION PERIOD 28 Sep 2022 - 28 Oct 2022
  • SUBMISSION DEADLINE 28 Oct 2022
  • SCOPE ACTIVITY Climate Action
SDG13 - Climate Action

The tokenisation of carbon credits refers to the act of creating a digital representation of a carbon credit using blockchain technology. This can be applied in multiple different ways in the carbon market, some – but not all - of which are linked to crypto-currencies. 

In May 2022, Gold Standard updated its Registry Terms of Use to clarify that the creation of tokens, crypto-currencies or other digital instruments or assets is not permitted without Gold Standard’s express written consent. This step was taken to ensure that Gold Standard can understand and manage any tokenisation of its credits in a responsible and cooperative way.

Since updating its Registry Terms of Use, Gold Standard has been considering the conditions and criteria that could be applied to determine whether to provide consent to organisations for the creation of digital tokens related to Gold Standard credits. In doing so, Gold Standard has considered the initial findings of IETA’s Task Group on Digital Climate Markets and taken into account feedback from members of its Working Group on Digital Assets for Climate Impact, announced earlier this month, as well as information from other stakeholders through bilateral meetings. 

Gold Standard has always embraced the potential for technology to drive greater ambition, efficiency and transparency within the carbon market. We recognise the benefits that blockchain technology can bring within the carbon market, for instance to provide a secure record of data and ownership of carbon credits, and as a basis for platforms seeking to innovate and mobilise finance to support the carbon market’s development.

At the same time, we are mindful of the potential risks if tokenisation is permitted to occur in an uncontrolled way, and without formal coordination and terms of reference between Gold Standard and third parties creating digital tokens representing Gold Standard credits on a blockchain. This includes risks related to environmental integrity, IT security, regulatory uncertainty and reputational harm. 

It is for this reason that we are seeking to establish a formal framework and conditions to permit and manage the creation of digital tokens representing Gold Standard credits, which is the subject of this consultation.

In May 2022, Gold Standard updated its Registry Terms of Use to clarify that the creation of tokens, crypto-currencies or other digital instruments or assets is not permitted without Gold Standard’s express written consent. This step was taken to ensure that Gold Standard can understand and manage any tokenization of its credits in a responsible and cooperative way. 

Since updating its Registry Terms of Use, Gold Standard has been considering the conditions and criteria that could be applied to determine whether to provide consent to organisations for the creation of digital tokens related to Gold Standard credits. In doing so, Gold Standard has considered the initial findings of IETA’s Task Group on Digital Climate Markets and taken into account feedback from members of its Working Group on Digital Assets for Climate Impact, announced earlier this month, as well as information from other stakeholders through bilateral meetings. 

Gold Standard has always embraced the potential for technology to drive greater ambition, efficiency and transparency within the carbon market. We recognise the benefits that blockchain technology can bring within the carbon market, for instance to provide a secure record of data and ownership of carbon credits, and as a basis for platforms seeking to innovate and mobilise finance to support the carbon market’s development.

At the same time, we are mindful of the potential risks if tokenization is permitted to occur in an uncontrolled way, and without formal coordination and terms of reference between Gold Standard and third parties creating digital tokens representing Gold Standard credits on a blockchain. This includes risks related to environmental integrity, IT security, regulatory uncertainty and reputational harm. 

It is for this reason that we are seeking to establish a formal framework and conditions to permit and manage the creation of digital tokens representing Gold Standard credits, which is the subject of this consultation.

Consultation Results

Following the closure of the consultation, Gold Standard published a summary of feedback received and next steps. This summary document and feedback from individual respondents can be found below.

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