Tuesday, 21 March 2023

Crypto News

Carbon market gets a much-needed boost from blockchain technology: Web3 exec

Carbon market gets a much-needed boost from blockchain technology: Web3 exec

Automated systems and blockchain technology are being increasingly utilized to improve the efficiency and accuracy of the carbon market, a critical component in the fight against climate change.  

Cointelegraph spoke to Bill Kentrup about the role of blockchain technology in digitizing verifiable data in the carbon market. Kentrup is the head of Origination and co-founder of enterprise software Allinfra Climate — a platform designed to help institutions achieve their sustainability goals. According to him, on-chain monitoring, reporting, verification, issuance, allocation, and retirement of carbon credits and carbon claims, could bring about efficiency and predictability that hasn’t existed in the past.

Kentrup said that by putting everything on ‘digital rails’, systems for detecting double counting, corporate carbon accounting, ratings, and reporting to government regulators can all go digital, saying:

“It’s far less efficient for a digital accounting system to process data from reports, non-digital sales, purchase agreements, and from traditional registries, that have limited info in terms of who the final owner of a retired asset is.”

Kentrup mentioned that historically, the challenges and inefficiencies associated with the carbon market have resulted in understandable frustration and significant pushback. According to him, this pushback contributed to the failure to extend the Kyoto Protocol beyond 2012. 

The Kyoto Protocol is an international treaty aimed at reducing greenhouse gas emissions and addressing climate change. It established a system of emissions trading, allowing countries that have exceeded their emissions reduction targets to sell their surplus allowances to countries that have not met their targets.

Speaking on how the current manual process of collecting and verifying data in the carbon market falls short, and how blockchain technology can help address these limitations, Kentrup said “Most traditional approaches used to monitor, report and verify (“MRV”) emissions reductions use intermittent manual processes to determine the environmental impact of projects. Data collection is often labor-intensive and time-consuming when the number of emission-reducing projects seeking environmental finance increases.”

“Historically there tend to be significant bottlenecks in terms of the availability of validation and verification bodies required to do the work from start to finish – the process of getting a single issuance of carbon…

Click Here to Read the Full Original Article at Cointelegraph.com News…