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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
- Communicate the importance of corporate carbon reduction efforts
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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Carbon Capture and Storage (CCS): GHG emissions are captured at the point of burning natural gas, for example at a power plant, and transported via pipeline to underground storage. What's interesting here is that the product transported has very high GHG emissions content relative to the transport process itself.
International trade of energy intense commodities like aluminum, steel, and cement that make up a large share of global international trade and anthropogenic emissions (>~12%). International commodity trade represents embodied emission that may not be captured by domestic/national carbon trading schemes. CBAM that can account for the embodied emissions in these commodities will be essential in building a market for green commodities.
Implementation
Hyperleger Fabric with multiple members from the supply chain. REST API for access from members. Cactus for integration with outside ledgers (ie trade finance or supply chain ledgers.)
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