Environmental Assets

Definition ∞ Environmental assets are digital representations of ecological values or services, such as carbon credits or biodiversity tokens. These assets are typically issued on blockchain platforms to track, trade, and verify environmental impacts or benefits. They enable market-based solutions for environmental conservation and climate action, providing a transparent and immutable record of ecological efforts. Their existence facilitates global participation in sustainability initiatives.
Context ∞ News often covers the tokenization of carbon offsets and other natural capital, with a focus on establishing credible and verifiable offsetting mechanisms. Debates concern the integrity of underlying environmental projects and the prevention of greenwashing. Future developments include expanding the scope of environmental assets to cover broader ecological services and enhancing their integration into global compliance markets.