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Edited by Ritu77 at 23-12-2023 07:00 PM
What is carbon trading?
Carbon trading, as defined by the Kyoto Protocol signed by multiple countries in 1997 to promote global greenhouse gas emissions reduction, is a mechanism for emission rights trading established by the United Nations Convention.
Due to varying costs for countries to reduce carbon emissions, the operation of the carbon trading market aims to encourage enterprises with lower emission reduction costs to increase their reduction volume. This results in more surplus carbon emission quotas or greenhouse gas reduction credits that can be sold to enterprises with higher reduction costs. This helps high-cost entities achieve carbon reduction targets and effectively lowers the cost of emission reduction goals.
Blockchain facilitating emissions reduction: Involvement of individuals and small to medium-sized enterprises
According to Professor William D. Nordhaus of Yale University:
There must be a way to decentralize control measures so that countries, producers, and consumers all have the right incentives, implementing control strategies at the individual level.
The Japanese project XELS, dedicated to eco-friendly blockchain, is moving towards this goal. Takeshi Nojima, the founder, stated:
In Japan, only about 10% of companies are required to reduce carbon emissions, and 90% of the general public and companies are not required to reduce. Therefore, if everyone can reduce carbon emissions and contribute to reducing global warming, it would be very meaningful.
Collaborating with energy-saving equipment manufacturer elesol®, XELS works to reduce electricity consumption for power equipment, holding international patents for use in various markets. With a carbon trading platform mediated by XELS Coin, the system economically incentivizes participants to reduce carbon emissions. XELS Coin can also be used to pay for electricity and purchase energy-efficient products.
A blockchain-based token economy provides a trustworthy, fast, and tamper-proof medium for carbon trading, turning the profits and environmental benefits of energy conservation and carbon reduction into not only the domain or responsibility of large enterprises but also an eco-friendly blockchain platform open to everyone. |
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Post time 12-11-2023 12:23:32