Decentralized Registration and Trading Platform for Emission Certificates
At a glance
The Fair Recycling Foundation is involved in refrigerator recycling and operates a refrigerator recycling factory in Cabreúva (Brazil), which extracts toxic CFCs from old refrigerators and destroys them in an environmentally friendly manner. If these refrigerators were disposed of and destroyed in normal car shredders, the CFC would be released into the atmosphere, attacking the ozone layer and consequently harming the climate. For the CFCs that are not released, the Fair Recycling Foundation can obtain emission certificates for the saved greenhouse gas, which can then be traded in the voluntary market for emission compensation. The registration and administration process for the emission certificates is currently handled by the third-party provider IHS Markit. Increasing administrative requirements and costs as well as a one-sided dependency make it difficult for the Fair Recycling Foundation to continue working with IHS Markit. Therefore, Fair Recycling would like to have the changeover to a more efficient, independent registration body that is self-governed by the environmental organizations examined. The innovative idea here is that, based on blockchain technology, a decentralized, auditable, transparent and independent registration and trading platform will be established, which will not only carry out many administrative processes more efficiently and cost-effectively, but also enable new business models thanks to transparency, independence and cross-organizational collaboration.