Yale University has been running an Open Climate Project for a global carbon accounting mechanism that can be balanced with the Paris Agreement, the pact has been signed with the aim to bolster the global response to the threat of climate change by keeping a global temperature rise this century well below 2 degrees above pre-industrial levels and to pursue efforts to limit the temperature increase even further to 1.5 degrees Celsius.
Climate change has a high impact in managing the global planetary carbon budget that translated into an accounting problem. The Open Innovation Lab of the university has been running an experiment how distributed ledgers can be used to measure and track carbon emissions. An official at the Linux Foundation said a climate change focus could be in the cards, similar to Hyperledger Sawtooth blockchain’s focus on supply chain which is known as Grid.
Working with British Columbia
The trust relation takes an increment between entities because of verifiable credentials which can be presented and verified on a peer-to-peer basis. A strong digital identity being decentralized uses cryptographic signatures. The climate accountability group of Wainstein now co-chairs a climate action and accountability working group has been working with the government of British Columbia (BC) on a project to use Hyperledger’s digital identity domains to track and verify oil wells in the Canadian province. It is because the carbon footprint of an oil well is measured and a permit is issued by BC’s digital identity system. Wainstein is very interested in BC’s work around verified credentials for oil well permits.
Issuers of verifiable credentials can make their private key(s), through which a blockchain can be used, globally discoverable and available via the DLT is a lighter way to use a blockchain. A British official said that they don’t frame their work as ‘’blockchain’’ nor do they face issues about blockchain adoption but there is a blockchain involved which is deep down in the technical layers and is not pertinent to the end user.
Invitation to Accounting Firms to Run Audit
Wainstein has been conversing with four big accounting firms and making them understand how carbon accounting is going to be a huge part of their business in the future. They are highly focused on tech side of the design and then hope to incorporate them at a later track. Open Climate is currently in the first stage which involves accruing philanthropic capital and an association of nonprofits. Wainstein wants to create the model for funding in a consortium around the early next year where you bring in corporate assets which is after you already have the governance mechanism. The subsequent immediate step is the Open Climate Collabathon.