Using Blockchain to Avoid Double Counting While Empowering Everyone to be Part of the Solution

Today’s side event at COP24 for Blockchain Technology for Enhanced Climate Action emphasized the importance of distributed ledger technology (DLT) to accelerate mitigation solutions for climate change and empower non-country parties to work together. The event featured the Climate Chain Coalition Screen Shot 2018-12-11 at 1.12.56 AMfounded just one year ago but already bringing together 140 organizations with a mission to mobilize climate finance and enhance monitoring, reporting and verification of climate goals.

Blockchain technology is a form of Distributed Ledger Technology (DLT). (For a good explanation of this technology see this World Bank Group 2017 report.)Screen Shot 2018-12-11 at 1.22.55 AM It functions as a decentralized database that can securely store data and digital assets, like environmental credits or certificates. Transparency is increased because the data recorded on the blockchain is a permanent ledger that cannot be modified. Trust between parties is increased because the data is not stored in a centralized location but rather through peer-to-peer transactions. Transaction costs are reduced enabling much smaller transactions that are accessible to more individuals.

A new report issued this week by the Climate Ledger Initiative (a collaboration of several think tanks aiming to accelerate climate action) Navigating Blockchain and Climate Action identified three main areas where blockchain has the most potential to accelerate climate action: 1) next generation registries and tracking systems; 2) digitizing measuring, reporting and verification; and 3) creating decentralized access to clean energy and finance.

The UNFCC has identified blockchain technology as a disruptive technology that has the potential to solve the solution to the main challenge of “how do you attribute the climate contribution while avoiding double counting.” Under the Paris Agreement (PA), a country steps up by submitting their commitment to mitigation measures as their Nationally Determined Contributions (NDCs). Theoretically, the development and continued revision of these NDCs will govern the Parties and their climate commitments under the Paris Agreement. But the Paris Agreement also encourages developed countries to finance projects in developing countries. Screen Shot 2018-12-10 at 5.41.57 PMWho gets the credit toward the NDC – the country financing the project or the country implementing the project? How do we ensure that one country (or entity) doesn’t take credit at one stage of a project and another take credit at a different stage? The security and transparency of blockchain may be the solution. (However, keep a healthy dose of skepticism, said CEO of Goldstandard, Marion Verles, because many times technology solutions are being proposed that don’t actually solve the real world problem.)

Climate change is the seminal issue of our generation and requires all hands on deck. As Massamba Thioye of the UNFCCC said today, “We need to mobilize ALL stakeholders, suppliers, financiers, consumers, citizens, policy makers so that they make the right investment.” The challenge being faced is how do we all work on the solution and create market incentives. Ms. Verles identified the importance of DLT technology in the supply chain to help corporations get the critical data they need to make decisions on the impact that a good has on the planet (carbon impact, water impact, etc).

See GLOCHA - the Global Citizen Empowerment System

See GLOCHA – the Global Citizen Empowerment System for Full Poster

This information can move to the end consumer. If you knew, and could compare, the carbon impact of items you were purchasing, would you pay a little more to make a cleaner purchase? The bottom line is that blockchain has the potential to add a value stream to products that represents the intentional choices of individuals, companies, and countries to work toward a cleaner, safer planet.

(Note bitcoin uses blockchain technology in a very energy intensive manner that is not healthy for our planet – see fellow VLS student Ben Canellys blog here.)

 


A Caffeine Constrained World

At the 23rd Conference of Parties (COP 23), Denise Loga, Co-founder and Managing Director of the Sustainable Food Academy, brought to light the issue of food security in changing climate. She recognized that the earth cannot sustain humanity’s current food systems. Unsustainable patterns of human consumption paired with climate change lends kindling to an already robust fire.

Climate change is resulting in sea level rise, increased extreme weather variability, and fluctuating temperatures. These characteristics of climate change affect crop yields and survival, threaten the livelihoods of farmers, disrupt economic production and supply chains, and threaten food security within vulnerable countries. According to State of Food Insecurity in the World (SOFI), approximately 815 million people are undernourished. This number is likely to rise as climate change decreases food security, which puts pressure on government food security strategies.

For example, coffee is a particularly climate-sensitive plant and is already experiencing decreased yield due to climate change. In a joint study by the the International Center for Tropical Agriculture under the CGIAR Research Program on Climate Change, Agriculture and Food Security, coffeedownload production in Brazil is predicted to see a drop by 25% by 2050 and Indonesia production is likely to drop by 37% by 2050. The loss of the valuable coffee trade is likely to impact developing countries disproportionally as coffee as a key export of developing nations. These countries are also tend to have the highest malnourishment and poverty rates. Adding economic pressure to countries in this position would further exacerbate domestic issues. This is one example among many in which the loss of a food resource has drastic impacts upon humans.

Loss of food security is an natural consequence of a rapidly changing climate. Due to the disproportionate impact upon developing countries, measures should be taken to ensure food security within those countries most vulnerable. This requires countries to take action to mitigate the effects of climate change and provide relief and aid to those countries in need. Without action on a significant scale, impacts on food security will be felt globallymap_c3_a3_50map_c1_a1_50


… by side (event)

The second of two fascinating and informative side events mentioned in my last post was hosted by the Global Canopy Programme, to launch its newest publication, The Little Book of Big Deforestation DriversIMG_4259 (which Alisha covered well here).  What caught my attention most was not the the research done to document and calculate the individual and cumulative supply chain impacts on climate change, but rather how to portray these results so that you want to learn more of these details. Can we, as individual consumers, augment national and international legal efforts to stop tropical rain forest deforestation, by making more informed buying decisions and thereby changing the deforestation catalysts embedded within the supply chain?  Take a look at the poster at right (I couldn’t help but think of Mara from the University of Montana, for she came to COP19 in part to learn how to communicate climate change impacts) and ask yourself:  how much forest did you eat today?