DocOnchain and Carbon Footprint
The actual carbon footprint and credit market is currently built around competing approaches. The challenge is not so much about finding the ultimate right approach as it is about enabling the aggregate potency of the different methods developed across the globe. Currently, no global or interoperable mechanism exists to capture, quantify and capitalize on paperless transition or supply chain traceability initiatives to empower potential participants of a carbon credit marketplace, both for carbon positive and negative resulting of their carbon emission reduction efforts.
How to define carbon credits?
Carbon credits can be defined as a generic term for any tradable certificate or permit representing the right to emit one ton of carbon dioxide or equivalent (CO2e). The purpose of all carbon or renewable credits and offset schemes is to reduce global greenhouse gas emissions. The carbon credit concept was created in 1997 with the Kyoto Protocol and was consolidated with the Paris Agreement in 2015. The international agreement is governing how much CO2e each country is permitted to emit in order to curb the progress of global warming.
The global market for carbon credits is based on the disparities between countries’ economic abilities to face this challenge.
To simplify, on one side, we have a group of developed nations 'the Annex 1’ and on the other side, 'the Non-Annex 1’ group, based on developing nations. The ‘Annex 1’ group is largely responsible for historical emissions (carbon credit negative) and it was required by the Protocol to agree on emission limits.
In theory and based on this system, Non-Annex 1 countries are able to earn carbon credits (becoming carbon credit positive) through investments in domestic carbon reduction projects, which they can then sell on the market to Annex 1 countries (carbon credit negative). This system enables developed countries to offset their greenhouse gas output through a result based financing mechanism that specifically empowers emerging nations investment in clean energy and sustainable development.
The energy and carbon emission sector today is highly transactional with many different actors, including multiple sources, suppliers, distributors and middlemen, making it inherently complex to tackle. Additionally, they are many different types of carbon capture or renewable credit projects, each with different impact values, determined by their environmental effect.
Companies that voluntary agree to take responsibility for offsetting their own carbon emissions are part of voluntary carbon marketplaces. Unfortunately, a common set of standards doesn’t exist to ensure that voluntary carbon markets operate efficiently when companies produce environmental, social and governance reports. Instead, a number of offset standards have been passed over the years, creating confusion and even fraud among organizations.
Blockchain technology projects for the ‘Impact sector’
Several ventures were launched in a recent past, however, the vast majority of these efforts remain stunted and stagnant. Most of them were based on cryptocurrencies that needed to be sold to investors before launch but they have seen a lack of adoption, haven’t passed the development phase, or still exist only conceptually as a white paper. In other words, blockchain applications for carbon control, carbon credits and markets still show few signs of progress.
There is a need for a global approach based on a blockchain architecture that can:
1. Assist governments and enterprises to use blockchain in their transition to an eco-responsible governance and help them increase their profitability via this transition;
2. Source different documents and data that can prove that the transition to blockchain solutions impacted the reduction of Greenhouse Gas Emissions while organizing them. Provide a track and trace trustable solution for these tamper-proof records;
3. Provide a Carbon Passport blockchain managed based on track and trace data and help users receive CER (Certified Emission Reduction) or VER (Verified Emission Reduction) certifications via international organizations and carbon credits.
4. Tokenize (convert) these carbon credits into tradable (tokens) credits and facilitate transactions of these tokens on a dedicated marketplace blockchain managed and secured.
The blockchain powered ‘D.O.C Supply chain’ platform provides an end-to-end process, where the verified proof of required data will allow to begin the journey of Carbon Footprint measurement with verifiable elements consolidated in the D.O.C Carbon Passport.
In the coming years, the need for sustainability of businesses and products will increase and as a result, companies willing to benefit from a ‘green’ label will be looking for trustable technologies like blockchain in order to make verifiable and provable claims about the practices behind their products.
DocOnChain using the verified proof of data from D.O.C Paperless or D.O.C Supply Chain solutions is well positioned to help construct a trustable Carbon Footprint history for its users while supporting them in making their eco-responsible governance highly profitable.
Try D.O.C Paperless free Plan now to save costs and boost your business during the pandemic period by managing, signing and exchanging digital documents. In addition to increasing your profits you will make your business more eco-responsible.
GLOSSARY OF ABBREVIATIONS IN CARBON WORLD
“CAEP - Committee on Aviation Environmental Protection (under the International Civil Aviation Organization)
CDM - Clean Development Mechanism (under the Kyoto Protocol)
CER - Certified Emission Reduction unit under the Clean Development Mechanism
CMP - Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol
CORSIA - The Carbon Offsetting and Reduction Scheme for International Aviation
CP/CP2 - The first and second commitment periods of the Kyoto Protocol, respectively
ITMO - Internationally Transferred Mitigation Outcomes (under Article 6.2 of the Paris Agreement)
KP - Kyoto Protocol MRV Monitoring, Reporting, Verification
NDC - Nationally Determined Contribution (under the Paris Agreement)
PA - Paris Agreement
QELRC - Quantified Emissions Limitation and Reduction Commitments (under the Kyoto Protocol)
VER - Voluntary Emissions Reduction
UNFCCC - United Nations Framework Convention on Climate Change