Papers
Topics
Authors
Recent
Search
2000 character limit reached

Blockchain and Carbon Markets: Standards Overview

Published 6 Mar 2024 in cs.CE | (2403.03865v1)

Abstract: The increasing significance of sustainability considerations within both public spheres (such as policies and regulations) and private sectors (including voluntary commitments by major multinational corporations) underscores the imperative to harness cutting-edge technological advancements. This is essential to ensure that the momentum of this trend translates into tangible outcomes, thwarting phenomena like greenwashing and upholding high standards of integrity, all while expediting progress through automation. This paper focuses specifically on carbon markets, which, after enduring years of confusion and controversy, may finally be on the brink of converging toward internationally recognized minimum standards. Beginning with an introduction to fundamental concepts pertaining to carbon markets and Distributed Ledger Technologies (DLTs), the paper proceeds to dissect the challenges and opportunities within this burgeoning field. Its primary contribution lies in offering a comprehensive overview of recent developments across various initiatives (such as ICVCM, IETA/WorldBank/CAD Trust, IEEE/ISO) and providing a layered analysis of the entire ecosystem. This framework aids in understanding and prioritising future endeavours. Ultimately, the paper furnishes a set of recommendations aimed at bolstering scalability and fostering widespread adoption of best practices within international markets.

Authors (1)
Definition Search Book Streamline Icon: https://streamlinehq.com
References (53)
  1. A. Chow, “The crypto industry was on its way to changing the carbon-credit market, until it hit a major roadblock,” 2022. [Online]. Available: https://time.com/6181907/crypto-carbon-credits/
  2. TSVCM, “Tsvcm (taskforce on scaling voluntary carbon markets) final report,” 2021. [Online]. Available: https://www.iif.com/tsvcm
  3. ICVCM, “Integrity council for the voluntary carbon market,” 2022. [Online]. Available: https://icvcm.org/
  4. VCMI, “Voluntary carbon markets integrity initiative,” 2023. [Online]. Available: https://vcmintegrity.org/
  5. ICVCM, “Icvcm and vcmi join forces to operationalize a high-integrity market to accelerate global climate action,” 2023. [Online]. Available: https://icvcm.org/icvcm-and-vcmi-join-forces-to-operationalize-a-high-integrity-market-to-accelerate-global-climate-action/
  6. VCMI, “Leading voluntary carbon market initiatives join forces to operationalize a high-integrity market to accelerate global climate action,” 2023. [Online]. Available: https://vcmintegrity.org/icvcm-join-forces/
  7. ICVCM, “The core carbon principles (ccp),” 2023. [Online]. Available: https://icvcm.org/the-core-carbon-principles/
  8. W. Bank, “Climate warehouse,” 2019. [Online]. Available: https://www.theclimatewarehouse.org/
  9. CADT, “Climate action data trust.” 2024. [Online]. Available: https://climateactiondata.org/
  10. R. D. Leonhard, “Developing the crypto carbon credit on ethereum’s blockchain,” 2017. [Online]. Available: https://ssrn.com/abstract=3000472
  11. R. Mok, S. Carevic, M. Ozdag, and S. Rogers, “Testing the use of blockchain to build a meta-registry for decentralized climate markets | world bank group,” 2019. [Online]. Available: https://olc.worldbank.org/content/testing-use-blockchain-build-meta-registry-decentralized-climate-markets-0
  12. L. Franke, M. Schletz, and S. Salomo, “Designing a blockchain model for the paris agreement’s carbon market mechanism,” Sustainability (Switzerland), vol. 12, 2 2020.
  13. M. J. Ashley and M. S. Johnson, “Establishing a secure, transparent, and autonomous blockchain of custody for renewable energy credits and carbon credits,” IEEE Engineering Management Review, vol. 46, pp. 100–102, 12 2018.
  14. Y. Pan, X. Zhang, Y. Wang, J. Yan, S. Zhou, G. Li, and J. Bao, “Application of blockchain in carbon trading,” vol. 158.   Elsevier Ltd, 2019, pp. 4286–4291.
  15. S. K. Kim and J. H. Huh, “Blockchain of carbon trading for un sustainable development goals,” Sustainability (Switzerland), vol. 12, 5 2020.
  16. A. Sipthorpe, S. Brink, T. V. Leeuwen, and I. Staffell, “Blockchain solutions for carbon markets are nearing maturity,” One Earth, vol. 5, pp. 779–791, 7 2022.
  17. A. Anjum, M. Sporny, and A. Sill, “Blockchain standards for compliance and trust,” IEEE Cloud Computing, vol. 4, pp. 84–90, 7 2017.
  18. A. Deshpande, K. Stewart, L. Lepetit, and S. Gunashekar, “Distributed ledger technologies/blockchain: Challenges, opportunities and the prospects for standards,” 2017.
  19. D. Wood, “A future history of international blockchain standards,” The Journal of the British Blockchain Association, vol. 1, pp. 1–10, 7 2018.
  20. M. L. Marsal-Llacuna and M. Oliver-Riera, “The standards revolution: Who will first put this new kid on the blockchain?” Proceedings of the 2017 ITU Kaleidoscope Academic Conference: Challenges for a Data-Driven Society, ITU K 2017, vol. 2018-January, pp. 1–7, 6 2017.
  21. V. Gramoli and M. Staples, “Blockchain standard: Can we reach consensus?” IEEE Communications Standards Magazine, vol. 2, pp. 16–21, 9 2018.
  22. C. Lima, “Developing open and interoperable dlt/blockchain standards [standards],” Computer, vol. 51, pp. 106–111, 11 2018.
  23. C. Aristidou and E. Marcou, “Blockchain standards and government applications,” Journal of ICT Standardization, vol. 7, pp. 287–312–287–312, 9 2019. [Online]. Available: https://journals.riverpublishers.com/index.php/JICTS/article/view/6373/5067https://journals.riverpublishers.com/index.php/JICTS/article/view/6373https://journals.riverpublishers.com/index.php/JICTS
  24. G. Bello and A. J. Perez, “Adapting financial technology stan-dards to blockchain platforms,” Proceedings of the 2019 ACM Southeast Conference, 2019. [Online]. Available: https://doi.org/10.1145/3299815.3314434
  25. N. Drljevic, D. A. Aranda, and V. Stantchev, “Perspectives on risks and standards that affect the requirements engineering of blockchain technology,” Computer Standards & Interfaces, vol. 69, p. 103409, 3 2020.
  26. L. König, Y. Korobeinikova, S. Tjoa, and P. Kieseberg, “Comparing blockchain standards and recommendations,” Future Internet 2020, Vol. 12, Page 222, vol. 12, p. 222, 12 2020. [Online]. Available: https://www.mdpi.com/1999-5903/12/12/222/htmhttps://www.mdpi.com/1999-5903/12/12/222
  27. C. N. Sudha, K. Gokulakrishnan, and J. J. V. Nayahi, “Standards and protocols of blockchain,” Blockchain for Smart Cities, pp. 335–354, 1 2021.
  28. X. Tang, “Towards an aligned blockchain standard system: Challenges and trends,” vol. 1490 CCIS.   Springer Science and Business Media Deutschland GmbH, 2021, pp. 574–584.
  29. L. Zhi, X. Tian, C. Ma, F. Xue, and T. Peng, “Exploration and research on energy and power blockchain standardization.”   Association for Computing Machinery, 12 2021, pp. 381–385.
  30. R. K. Perrons and T. Cosby, “Applying blockchain in the geoenergy domain: The road to interoperability and standards,” Applied Energy, vol. 262, 3 2020.
  31. J. G. Keogh, A. Rejeb, N. Khan, K. Dean, and K. J. Hand, “Optimizing global food supply chains: The case for blockchain and gsi standards,” pp. 171–204, 2020.
  32. J. Schmidt and W. Steingress, “No double standards: Quantifying the impact of standard harmonization on trade,” Journal of International Economics, vol. 137, p. 103619, 7 2022.
  33. L. Insights, “Debate escalates over quality of blockchain carbon credits - ledger insights - blockchain for enterprise,” 2022. [Online]. Available: https://www.ledgerinsights.com/quality-blockchain-carbon-credit-tokens/
  34. S. G. C. Insights, “As verra halts tokenization of carbon credits, toucan vows to ’keep web3 ethos alive’,” 2022. [Online]. Available: https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/energy-transition/052522-as-verra-halts-tokenization-of-carbon-credits-toucan-vows-to-keep-web3-ethos-alive
  35. J. Rackoff, “Accelerating the voluntary carbon markets with dlt,” 2022. [Online]. Available: https://www.hbarfoundation.org/blog-post/accelerating-the-voluntary-carbon-markets-with-dlt
  36. Verra, “Verra concludes consultation on third-party crypto instruments and tokens.” 2023. [Online]. Available: https://verra.org/verra-concludes-consultation-on-third-party-crypto-instruments-and-tokens/
  37. G. Standard, “Comment: Blockchain for better: Untangling tokenisation and carbon markets | the gold standard,” 2022. [Online]. Available: https://www.goldstandard.org/blog-item/comment-blockchain-better-untangling-tokenisation-and-carbon-markets
  38. UNEP, “Blockchain solutions to carbon market challenges - unep-ccc,” 2019. [Online]. Available: https://unepccc.org/blockchain-solutions-to-carbon-market-challenges/
  39. L. Insights, “Blockchain-based climatetrade admitted to eex mandatory carbon market,” 2022. [Online]. Available: https://www.ledgerinsights.com/blockchain-based-climatetrade-admitted-to-eex-mandatory-carbon-market/
  40. EEX, “Eu ets auctions,” 2022. [Online]. Available: https://www.eex.com/en/markets/environmental-markets/eu-ets-auctions
  41. D. Davis, “What happened to ftx? the crypto exchange fund’s collapse explained.” 2023. [Online]. Available: https://www.forbes.com/sites/darreonnadavis/2023/06/02/what-happened-to-ftx-the-crypto-exchange-funds-collapse-explained/?sh=38967a013cb7
  42. C. Team, “Exploring daos: Uncovering web3 ownership realities.” 2022. [Online]. Available: https://www.chainalysis.com/blog/web3-daos-2022/
  43. B. C. Team, “B corporation movement.” 2024. [Online]. Available: https://bcorporation.uk/
  44. IOSCO, “Compliance carbon markets consultation report,” 2022. [Online]. Available: www.iosco.org
  45. G. Protocol, “Greenhouse gas protocol.” 2024. [Online]. Available: https://ghgprotocol.org/
  46. BREEAM, “Building research establishment environmental assessment method.” 2024. [Online]. Available: https://bregroup.com/products/breeam/
  47. Eurostat, “Glossary:carbon dioxide equivalent.” 2024. [Online]. Available: https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Glossary:Carbon_dioxide_equivalent
  48. S. F. Center, “What is the glec framework? - how to implement items,” 2022. [Online]. Available: https://www.smartfreightcentre.org/en/how-to-implement-items/what-is-glec-framework/58/
  49. CoinDesk, “Crypto-regulation-sec-cftc-gary-gensler,” 2022. [Online]. Available: https://www.coindesk.com/consensus-magazine/2022/12/23/2023-the-year-of-regulation-vs-decentralization/
  50. GLEIF, “Iso 17442: The global standard,” 2022. [Online]. Available: https://www.gleif.org/en/about-lei/iso-17442-the-lei-code-structure
  51. Swift, “What is iso 20022?” 2022. [Online]. Available: https://www.swift.com/standards/iso-20022
  52. E. Commission, “Blockchain standards,” 2022. [Online]. Available: https://digital-strategy.ec.europa.eu/en/policies/blockchain-standards
  53. IEEE, “Ieee sa - ieee 3218-2022,” 2022. [Online]. Available: https://standards.ieee.org/ieee/3218/10607/

Summary

No one has generated a summary of this paper yet.

Sign Up to Summarize

Paper to Video (Beta)

No one has generated a video about this paper yet.

Sign Up to Generate All Videos Subscribe on YouTube

Whiteboard

No one has generated a whiteboard explanation for this paper yet.

Sign Up to Generate

Open Problems

We haven't generated a list of open problems mentioned in this paper yet.

Generate Now

Continue Learning

We haven't generated follow-up questions for this paper yet.

Generate Now

Collections

Sign up for free to add this paper to one or more collections.

Sign Up

Tweets

Sign up for free to view the 2 tweets with 0 likes about this paper.

Sign Up for Free