CO2 emissions as one of the causes of climate change require consolidation at the level of large issuers: industrialized countries and energy generating companies. That’s where blockchain comes into play.
According to NASA, 17 of the warmest 18 years on record have occurred since 2001, while global average sea level has risen nearly 178 mm over the past 100 years and continues to rise by 3.2 millimeters annually.
One may be skeptical of the “global warming” term, but there’s another indicator: the level of dioxide emissions. According to the same source, carbon dioxide levels in the air are at their highest in 650,000 years.
The largest CO2 issuers into the atmosphere are power generating companies fueled by fossil materials. To reduce the harmful effects caused by manufacturing, the Kyoto Protocol came into effect in 2005, providing for emission trading.
Carbon credits (accountable emission reductions) are measured by carbon units equivalent to one tonne of CO2 emitted into the atmosphere. Since above-quota emissions are limited and subject to a fine, carbon credits are in demand and available for purchase on the exchange. Other market models like credit-based or tax and trade are also developed and implemented.
However, the markets suffer from over-regulation, over-centralisation, unpredictability, and non-transparency.
Here is the time for blockchain
The world’s first carbon units transaction using this technology took place in the spring of 2017, in the DAO IPCI blockchain ecosystem. The system built on the Robonomics Network by Airalab, combines verification, registration, and environmental commodities market functions. Based on peer-to-peer market interaction, it allows users to allocate and manage environmental assets and liabilities through distributed ledgers stored in the blockchain.
The technology ensures transparency and reliability of carbon credits verification procedures, transactions and the possibility of global interactions between fragmented carbon pricing initiatives.
Smart building solution
For now, 53 jurisdictions and numerous voluntary carbon market solutions make up the project’s target audience, let alone international aviation pilot market mechanism while carbon market is likely to reach $10 trillion in the mid-term perspective, according to the DAO IPCI.
The above-mentioned case describes only one of Robonomics Network’s implementations. It opens up a green capital market and investment opportunities not only for countries but also for so-called smart buildings improving their efficiency and sustainability. A 40-storey office building, which consumes a lot of energy for heating, air conditioning and maintaining its systems, can also calculate its carbon footprint and acquire units through the platform, says Sergey Lonshakov, Airalab visionary leader, Robot economics architect.
After attracting over $ 1 million investment through the first round of ICO held in 2017, his team is now preparing for the further Robonomics tokens’ distribution and establishing a bounty program for miners. This will enable a full Robonomics ecosystem’s deployment with the subsequent project’s implementations.