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Objectives

This project will create a newtork for decarbonizing a Supply Chain, which could span multiple parties across industries and countries.  It will include an emissions ledger to record emissions data, a DAO for collectively deciding on decarbonization options, and a tokens network for transferring the emissions reductions (decarbonization) across the members of the network.e tokenized and traded. 

Use Cases

Decarbonization of supply chain, or Scope 3, emissions remains a hard problem for many reasons, even as regulatory compliance, such as the EU carbon border tax, the EU Carbon Boarder Adjustment Mechanism targeting imports of energy intense commodities, make it increasingly important.  Our solution offers the following advantages:

  • Cost of carbon footprinting - We're free. (smile)
  • 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

Implementation

Information from a variety of sources, from freight bills of lading (BOL's) and carrier tracking information, to mobile and IOT devices attached to vehicles, will be compared against published emissions factors to determine the emissions from transportation.  

Product emissions databases can be used to determine the emissions of the component products.

The calculated emissions are either recorded on Fabric or encrypted and recorded on IPFS.  

Tokens are then issued using the Emissions Tokens Network Project.

The Decarbonization DAO will govern the decarbonization of the emissions, by certifying carbon credits that will be considered valid emissions reductions.  It may include certificates of sustainable fuel, such as those from the Reducing Methane Leakage and Flaring through Supply Chain Tokens, or carbon offsets where no direct emmissions reductions are available.

The certificates or offsets will be tokenized to allow the parties to purchase and retire them to support the overall decarbonization of the supply chain. 

References

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