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The destination emissions of the products could be used for regulatory compliance, such as the EU carbon border tax, the EU Carbon Boarder Adjustment Mechanism targeting imports of energy intense commodities, and for meeting customers' climate objectives. They could also be used to help investors assess the risk of different products. Finally, by comparing the actual results versus simulations of business-as-usual alternatives, these calculations could be used to prove emissions reduction, certify products as low carbon, and create carbon offsets.
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- Cost of carbon footprinting - We're free.
- Creating incentives for suppliers - Customers, either big ones or a group of small ones, could set up their own "cap and trade" scheme: Declare their supply chain emissions targets which decline over time, aligning with the Paris Agreement (-50% by 2030, zero by 2050.) Allocate tokens to suppliers based on those targets. Suppliers can trade their emissions with each other but over time must reduce them as a whole.
Providing turnkey solutions - Again using tokens, major customers could either invest in emissions projects directly and provide them to their customers (like Apple and "Enabling carbon neutrality across the value chain" in this article) or provide financing or guarantees for financing for suppliers.
- Verification - Could be done through this ledger.
- Going deep - Suppliers could get their suppliers on the ledger, and tokens could be transferred further up the supply chain.
- Address the pain points, needs and interests of emerging regulations like the CBAM on the international stage
Sample Supply Chains
Fruit and Produce: Fruit and produce is harvested at a farm, transported by truck, processed at a distributor facility, shipped by freight (air, truck, or rail) with refrigeration, and delivered to a grocery store or supermarket. Optionally we can consider storage at the grocery store or supermarket as an additional step in the supply chain to the final consumer.
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