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Blockchain Infrastructure for the Global Green Finance Markets

Technology Overview

A blockchain-based Integrated Program for Climate Initiatives platform is developed for environmental market-based programs’ operators and participants to account for the data on transferable environmental assets and liabilities, environmental mitigation units, carbon units’ registration, issuance, transfer, and operations. Our technology enables the creation of smart contracts-based digital ecosystem (business environment) to minimize transaction costs, to make issuance and transfer of digital environmental units highly reliable, transparent and free from centralized manipulations.

Our solution is an operating blockchain infrastructure for the global green finance markets. The architecture of our solution provides for actual interaction of different asset-based systems on the Ethereum blockchain.

Advancement of decentralized arbitration, distributed ledger, triple-entry accounting technologies such as blockchain, crucially decreases transaction costs for peer-to-peer interactions. Application of blockchain technology to mitigation of collateral socio-environmental damage of economic activities (i.e. climate change) relies on a market concept of decentralized peer-to-peer and public evaluation of negative impact, distribution of liability, and settlement by means of mitigation outcomes.

Technology Features & Specifications

  • Attracting investment into green projects worldwide by transparent issuance of Carbon Credits, Green Bonds, Renewable Energy Certificates and other types of environmental assets.
  • Easy peer to peer access to green investment and various assets for people and businesses via an online decentralized application (DApp).
  • Tracking and offsetting of environmental and carbon footprints.
  • Monitoring of green investment projects outcomes and supply chains.
  • Instant launch and management of decentralized environmental programs

Digital compliance unit in the program is Transferable Mitigation Unit (TMU) equal to one ton of CO2-equivalent, embracing:

  • Carbon offset credits – actual and absolute, independently assured, quantitatively measurable, irreversible, permanent or long-term, secure or insured, additional or target-oriented, not otherwise required by compulsory regulations on anthropogenic greenhouse gas (GHG) emission reductions or removals by sinks;
  • Quantitative GHG emission limitation and reduction, carbon neutrality, carbon footprint commitment-based compliance outcomes, eligible under the requirements of the program.

Potential Applications

The solution may be used by any entity or any person who wants to reduce their carbon footprint and trade CO2 reductions. It’s key area of use - blockchainization of corporate, regional, national and international environmental programs. Any existing measurable environmental program can be incorporated into our blockchain, so that its results could be easily monitored and controlled.

Our platform may be used in governmental/intergovernmental and private GHG reduction programs. We are open for cooperation with states, organizations regardless of size and individuals, enabling them to issue, transfer and trade green assets, the results of their environmental mitigation activities, on a global scale.

Below are 2 existing use cases that involves integration of IoT sensors collecting data of GHG reductions and storing them onto our blockchain. The amount of carbon units is automatically calculated via smart contracts:

  1. Project where smart sensors will be used to evaluate GHG reductions obtained through the use of renewables
  2. Project where sensor equipped drones will collect data on methane pollution over junkyards and fracking fields

 

The carbon mitigation token is an open source solution. We invite users to use our platform and to engage in joint projects and co-development.  

Market Trends and Opportunities

The efforts taken by the governments participating in the Paris Climate Agreement create a favorable situation for green finance market.

The Climate Action Tracker Project estimates that based on current policies there will be a global shortfall of 5,000-8,000 metric tons of carbon dioxide (MTCO2) on Paris Agreement targets. High level estimates indicate that generating offsets to meet this shortfall could be worth around US$230 billion to the global economy in 2030.

The infrastructure for green quotas trade emerged in 1997 under the Kyoto protocol (for example, Russia sold 240 million tons of CO2 under this agreement).

In the coming decades, the emission quota market promises to become the largest commodity market in the future with a volume of about US$10 trillion. Today, CO2 emissions trade exists in 54 countries. The emission trading system for aviation is expected to be launched in 2020.

Over the past two years, the annual volume of issuance of so-called green bonds doubled; in 2017 it reached US$92 billion.

Customer Benefits

The specifics of blockchain technology allows the avoidance of double counting, something that used to slow down the growth of green finance market.

Our platform allows companies to register its carbon offsets and have the ability to transact on our blockchain, which means higher security, the absence of intermediaries, and the possibility of peer-to-peer transactions. This results in cost savings for the company of less than one tenth of the price of the traditional mechanisms.

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