Innovation Tagline: Using non Non-fungible tokens (NFTs) as digital ink for tracking waste emissions.
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CarbonChain provides an emission accounting platform for commodity supply chains. It focuses on providing centralized services rather than working on removing data silos, and providing new incentive structures to encourage collaboration.
The Environmental Defence Defense Fund (EDF 2021) points out that investors need to pressure energy companies to improve flaring transparency, requiring collaboration across stakeholders to establish clear metrics.
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- Inputs are retired NETs for direct (scope 1) or indirect (scope 2/3) emissions.
- Outputs are tokens transferred downstream.
- VCT are transferred as the CO2e of fuels sold to consumers (used in commercial trade).
- AEC are indirect emissions, e.g., from selling electricity/heat
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When using profiles to track embedded emissions the user explicitly references the source C-NFT
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(arrows in Figure 2).
In practice a supplier announces to its customer, I am sending emissions tokens (e.g. VCT) from this facility's emission profile (NFT).
This connects the internal boundaries
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of traditional reporting silos.
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We are not aware of an existing system that enables stakeholders to explicitly share
The consumer can identify waste emissions through NFT analysis using public view functions, such as carbon intensity metrics:
- CI of oil & gas supplied (Fuel trade out) -> flared gas + leakage
- CI of Refined fuel trade -> other emissions (e.g., electricity/heat)
- The example also subtracts offset credits purchased from a dealer (green box)
Linking consumption by a Final userthe Fuel user's (Figure 2) consumption to a C-NFT communicates can communicate all waste emissions, including percentage/e.g., percentage and totals of flared gas.
Verification requires independent auditing in during the MRV cycle. Flared gas inputs of the Oil & Gas producer's NFT(red boxes) , could can be verified by issuing AECs backed by an independent tracking service. For this
Figure 3 Architecture for verifying waste emission.
Accomplishment and Team
Project Plan
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