Carbon tracking and Emissions Trading System
In our previous introductory article on the Power blockchain, we discussed the impact of Power Blockchains on the energy markets and identified 5 opportunity themes. This article discusses the Carbon tracking and registries (Carbon Credits) theme and associated systems.
There are significant efforts in many markets towards decarbonisation and to decrease carbon emissions from power generation. This requires reliable, and accurate carbon emission measurement and tracking. Without dependable data achievement of any emission reduction targets would be questionable.
An Emissions Trading System (ETS) provides a platform for managing carbon within a marketplace. An ETS provides caps on emissions and allows the economy to transact in Carbon Credits. Having Carbon Credits trading system allows businesses and individuals to make informed decisions on energy choices and their carbon footprint.
It is essential to have a reliable ETS for businesses to actively participate in carbon trading schemes. Power Blockchain delivers an immutable capability for reliable carbon credit tracking and ETS. Provided appropriate market design is established, Power Blockchain can support economies to meet their emission targets such as those outlined in the Paris Agreement.
Combined with other technologies such as IOT and appropriate sensors, Power Blockchain can deliver an ETS architecture that reduces intermediate agencies. This will reduce the cost of administering the Carbon Credits whilst improving efficiency, accuracy and reliability.
The current ETS has required significant investment for deployment. Introducing any new technologies such as Power Blockchain will require new investment which in turn may provide a barrier for adoption. However, the efficiencies and improved reliability through Power Blockchain ETS offer significant opportunities that can justify the new investment in enhanced technology.
Power Blockchain is a trusted and reliable system for handling energy transactions with the future capability of being able to trade Carbon Credits across economies and jurisdictions.
Atlantic Power exchange is building a multichain platform with interoperability that can help the EV market accelerate its market penetration and further reduce the carbon footprint form the transport sector.