Home » World Bank backs blockchain project to harmonize carbon registry data – Ledger Insights

World Bank backs blockchain project to harmonize carbon registry data – Ledger Insights

by admin

Trust in Climate Action Data (CAD Trust) is a new initiative to create distributed logs using blockchain. carbon credit Store data from multiple major carbon registries. We plan to launch in December and share more details.

An independent entity based in Singapore was set up by the International Emissions Trading Association.Yeta), world bankthe Government of Singapore and other government, public and private sector organizations.

CAD Trust has created an open source metadata system to decentralize data using distributed ledger technology.

“Carbon markets can help countries reach their climate goals, but only if the reductions are realistic and credible. It’s an important step in solving the challenge of ,” said Chandra Shekhar Sinha, Lead Financial Specialist at the World Bank.

Blockchain to combat double counting

Ledger Insights covers a variety of business sectors, similar to the purpose of CAD trusts and other sectors such as trade finance, which uses blockchain to prevent double counting.

The few companies that seek to raise trade finance based on invoices, shipments, or warehouse goods take their paperwork to multiple banks to fraudulently raise funds multiple times. Not most companies, but it still happens often.

Similarly, as the number of carbon registrations increases, solar farms, forest conservation projects, or other projects sustainability Initiatives may seek to generate carbon credits in multiple registries. The solution is to aggregate data across registries.

One of the challenges with sustainability is that it appeals to people’s best intentions, and as such can attract charlatans who seek to exploit them. Therefore, we need to ensure trust and be able to channel money into climate impacting projects.

As the number of carbon registries grows, a single API connection to CAD Trust will enable organizations to check the status of their carbon credits across multiple registries. This means you only need to access his one API instead of multiple APIs.

CAD Trust is a World Bank climate warehouseCAD Trust is one of the innovation projects that explored, prototyped and developed digital infrastructure for the carbon market.

IETA President and CEO Dirk Forrister said the CAD solution was based on input from several members who attended Climate Warehouse. Forrister said:

“The resulting Climate Action Data Trust will act as a public good, providing an accessible, decentralized, and secure digital infrastructure that can be used by all participants in the carbon market, for market communication, trust and transparency. It serves as a valuable tool for

Tokenization of carbon credits

This particular project is about registry data sharing, not tokenization. Nonetheless, there is considerable momentum in tokenizing, trading and settling carbon credits using blockchain technology. Some of the initiatives are run by leading companies such as: carbon placemajor banks, and Singapore’s Climate Impact Exchange (CIX). However, there are also a few by the web3 startup that have caused quite a bit of controversy.

In fact, one of the major registries, Verra, Pause Tokenization of pending carbon credits Consultation resultMost web3 tokens are obsolete in registries at the time of tokenization. However, retirement means the credit has been spent, which is not always the case when tokenized. This means Verra’s registry needs to be updated.

This is a topic that IETA was ahead of.

March, IETA It was published that thought it’s talked aboutWe use blockchain to monitor, report, and verify climate benefits (MRV) and see benefits for tokenizing credits.

However, it expressed concern about the speculative nature of some schemes. Suggestions such as decommissioning only the tokenized credits in the registry and decommissioning the underlying credits when the carbon credit tokens are burned.

Related Posts

Leave a Comment