Kenja 2022

Abstract

The main reason as to why blockchain technology is so highly sought after is due to the fact that it helps tackle one of the biggest obstacles of the modern digital age, trust. Blockchain addresses issues of digital trust with qualities of immutability, traceability, security, and transparency. Kenja saw the value of blockchain technology and seized the opportunity to enter the carbon credits market by using it to help its clients with the carbon credits certification process. As many organizations are tackling the issue of Net Zero, one promising solution comes in the form of offsetting levers achieved by buying ghg emissions offsets (carbon credits) via carbon markets. These offsets allow companies to compensate for emissions by enabling reductions / removals of ghg emissions that take place elsewhere. Carbon credits are a tradeable security that represents the permission for an entity to release 1 ton of CO2. These credits are a financial product created to help offset the environmental footprints of these corporations. As the carbon markets have been very fragmented and unorganized, major players such as Microsoft and Carbon Direct are working towards bringing some form of standardization to the industry. Kenja has done well so far but this new shift presents the perfect opportunity for the company to revisit its operations in the carbon industry. Kenja has addressed the challenges of trust, security, and transparency for its clients through the utilization of blockchain technology but going forward, the company must now decide where best to focus its efforts amongst the upcoming market shift. This case gives an overview of the carbon market and highlights key components that are necessary for Kenja to achieve success in an emerging market in the carbon credits industry.

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