The Largest Carbon-Offset Registry Cracks Down on Crypto

Millions of carbon credits have been used to back digital tokens in recent months. Verra said it would no longer allow credits to be retired from its database to create new tokens

A coal-fired power plant in Germany. Many such operations are buying credits to offset their carbon emissions.

Photo: Alex Kraus/Bloomberg News
By
Dieter Holger

A standard-setter in carbon offsets is clamping down on cryptocurrency projects in the sector, saying they add confusion to the fast-growing market that companies tap to compensate for their emissions.

Verra, a nonprofit organization that runs a registry of carbon credits, said on Wednesday it would no longer allow credits to be retired from its database to create new crypto tokens. The move, which Verra said takes effect immediately, would restrict the ability of crypto project developers to piggyback on the rapid growth of the voluntary carbon market.

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