Zeroing Out Blockchain Network Emissions with CCRI and Thallo
Problem
When Matter Labs, the software development and engineering company responsible for pioneering blockchain solution zkSync, began addressing the environmental impact of its operations, they faced a significant challenge. They were committed to compensating for their negative environmental footprint but had no clear roadmap on how to initiate this transformation effectively.
“We knew we wanted to compensate for our carbon emissions using high quality carbon offsets. But we had no idea where to begin – who to trust, how to access the market, and what solutions would give us confidence that we were doing something truly positive.”
Pearl Imbach, Senior BD, Financial Institutions and Capital Markets, Matter Labs
Solution
In their effort to find credible players, Matter Labs turned to research organization Crypto Carbon Ratings Institute (CCRI) for carbon accounting and climate solutions company Thallo for sourcing high quality carbon credits secured on the blockchain.
To help Matter Labs understand how many carbon credits to buy, CCRI conducted a comprehensive analysis, quantifying scope 1, 2, and 3 carbon emissions from the zkSync network, including from both layer 1 and layer 2 activities.
“When quantifying carbon emissions caused by cryptocurrencies, it is vital to follow established carbon accounting standards and adapt those to crypto-specific incentive structures and emission drivers. In 2022, CCRI co-developed the industry-first crypto carbon accounting framework, and we are pleased to see more and more companies using our methodologies and data to double down on crypto climate impact disclosure.”
Dr. Christian Stoll, Co-founder, CCRI
Armed with this information, Matter Labs then turned to Thallo, a trailblazing provider of seamless, fully auditable carbon offsetting solutions via its Carbon-as-a-Service API. Thallo provided not only high quality carbon credits through cutting-edge technology, but also guidance about what types of carbon credits would be a good fit for zkSync based on its values and budget.
“Our Carbon-as-a-Service solution allowed zkSync to meet its sustainability goal while benefitting from the transparency and traceability inherent to Thallo’s blockchain-based digital infrastructure. We were also able to provide education and guidance along the way to help the Matter Labs executives be more confident in their understanding of carbon credits, and ultimately the decisions of which projects to support.”
Nicolas Alexander, Head of Policy & Partnerships, Thallo
Impact
The results have exceeded Matter Labs’ expectations. With precise carbon accounting from CCRI, Matter Labs discovered the extent of zkSync’s environmental impact, enabling them to take meaningful steps towards mitigation.
Thallo’s Carbon-as-a-Service API empowered the company to offset its H1 2023 emissions in a transparent, efficient, and verifiable manner. This resulted in the funding of impactful, environmentally responsible projects worldwide.
The exact metrics are as follows:
- zkSync funded 3 ICROA-accredited and verified carbon offset projects in Latin America, making a significant contribution to the fight against climate change and other sustainable development goals. Projects included a biochar project in Bolivia, a reforestation and restoration project and an avoided deforestation projects – both in Colombia
- Through Thallo’s comprehensive reporting, zkSync has achieved complete transparency and full audibility of their carbon offset efforts, which can be tracked through the personalized Carbon-as-a-Service dashboard.
- Transparency on environmental impacts forms the basis to comply with upcoming sustainability disclosure requirements under EU MiCA regulation
Conclusion
In summary, Matter Labs’ journey to position zkSync as an environmental leader is a testament to the power of collaboration, accurate carbon accounting, and seamless carbon offsetting. The company has not only compensated for zkSync’s network climate impact, but also positioned itself at the forefront of transparency and climate action in the web3 industry.
