According to an announcement dated April 22, 2020, the International Chamber of Commerce (ICC) has launched a new and robust climate action initiative – the ICC Carbon Council – to curb the existing inefficiencies in the carbon market by leveraging blockchain technology.
ICC Launches Carbon Council
On the occasion of the 50th anniversary of Earth Day, the ICC has launched a new distributed ledger technology-enabled (DLT) initiative which seeks to bring higher liquidity to the carbon market.
The ICC, in conjunction with blockchain firm Perlin, and carbon asset digital exchange AirCarbon Exchange, is working on the development of the Carbon Council. Notably, ICC Carbon Council’s inaugural meeting was attended by a slew of major international companies including BlackRock, Macquarie Bank, Shell, Singapore Airlines, State Street, and Temasek.
Commenting on the development, John W.H. Denton AO, Secretary General, ICC, said:
“We believe that business must lead in creating effective market-based mechanisms to help address the current and future threat of global warming. Even as much of the world grapples with the devastating effects of the COVID-19 pandemic, this milestone Earth Day is a reminder that we must not lose sight of the need for an inclusive, resilient and sustainable future for people and our planet.”
The ICC will look to leverage its extensive network comprising 45 million businesses spread across more than 100 countries the world over to act as a global connector and convenor for carbon trade.
Per sources close to the matter, the ICC is now inviting potential members to join the council across various sectors to help provide financial assistance to vital carbon mitigation projects across the world.
William Pazos, COO, AirCarbon, said:
“Carbon markets have grown five-fold in just two years but remain fragmented, opaque and illiquid. AirCarbon uses traditional commodity trading exchange architecture and pioneering blockchain technology to overcome the problems that hinder growth in carbon markets and enable the highly liquid trade of fungible carbon assets.”
Tapping Blockchain to Curb Global Carbon Emission
Blockchain technology’s cutting-edge characteristics make it an ideal candidate for a plethora of industries and ecosystems around the world, including its potential to curb global carbon emission.
As stated in the release, VeChain has inked a partnership deal with San Marino’s Secretariat of State for Industry, Crafts and Trade, Labour, Cooperation and Telecommunication, DNV GL Business Assurance Group AS and the Institute for Innovation of the Republic of San Marino.
The partnership is aimed at collaboratively developing the “San Marino Low Carbon Ecosystem” project which will promote ecological behaviors that reduce the emission of carbon monoxide into the atmosphere.
VeChain will be responsible for developing the San Marino Innovation Token, a utility token which will be used to reward citizens that engage in sustainable practices such as water conservation, proper waste management and more.
The team says citizens will be able to use the San Marino Innovation Token to access some government services. Asides the low carbon emission initiative, the government plans to formulate other blockchain-based sustainable projects. It also plans to set up two dedicated groups that will be made up of technicians, lawyers, as well as institutions to facilitate the project.
As reported in September last year how Distributed Computing Lab (DCL) had developed a cryptocurrency to secure a network without risking its decentralization and emitted a tiny fraction of carbon dioxide relative to that of Bitcoin (BTC).