Carbon Traceability

Definition ∞ Carbon traceability involves recording and verifying the environmental impact, specifically carbon emissions, associated with products, services, or supply chains. This process utilizes verifiable data to track the origin and journey of goods, quantifying their carbon footprint at each stage. It offers transparency regarding ecological responsibilities. Such systems aim to support sustainability objectives.
Context ∞ In the digital asset space, carbon traceability gains importance as blockchain networks face scrutiny for their energy consumption. Projects often employ blockchain to provide immutable records of carbon credits or supply chain emissions data. Investors and regulators pay close attention to initiatives that promote environmental accountability within crypto operations.