Governing Carbon Markets with Distributed Ledger Technology

A practical legal analysis of how distributed ledger technology can help achieve sustainable and cost-effective outcomes in carbon markets.

Alastair Marke (Edited by), Michael Mehling (Edited by), Fabiano de Andrade Correa (Edited by)

9781108843560, Cambridge University Press

Hardback, published 25 August 2022

214 pages
23.5 x 15.8 x 1.7 cm, 0.46 kg

'As countries strive for solutions to implement the Paris Agreement, this book proposes to exploit the potentialities of distributed ledger technologies, particularly Blockchain, to enhance transparency as well as build more resilient carbon markets.' Ambassador Seyni Alfa Nafo, Technical Coordinator of the Africa Adaptation Initiative (AAI)

Carbon markets involve complex governance challenges, such as ensuring transparency of emissions, facilitating as well as recording transactions, overseeing market activity and preventing abuse. Conventionally, these have been addressed with a combination of regulatory, procedural and technical structures that impose significant burdens on market participants and administrators while remaining vulnerable to system shocks and illicit practices. Distributed Ledger Technology (DLT) has the potential to address these problems. This volume offers the first book-length exploration of how carbon markets can be governed using DLT, offering conceptual and theoretical analysis, practical case studies, and a roadmap for implementation of a DLT-based architecture in major existing and emerging carbon markets. It surveys existing expertise on distributed ledger technology, provides progress updates from industry professionals, and shows how this technology could offer a cost-effective and sustainable solution to double-counting and other governance concerns identified as major challenges in the implementation of carbon markets.

1. Understanding 'Distributed Ledger Technology' and its potential as a disruptive technology for climate action Alastair Marke
2. Governing the Carbon Market Michael A. Mehling
3. Potential interaction between Artificial Intelligence, Internet of Things and DLT Dessa-nin Ewèdew Awesso, Marco Zolla, and Alastair Marke
4. Emerging technologies and their applicability to solve challenges in the carbon markets: An overview Alastair Marke, Max Inglis, and Constantine Markides
5. Transition to a DLT-supported governance framework Clare Reynolds and Nicola Massella
6. DLT and the European Emissions Trading System Marco Zolla, Alastair Marke, and Michael Mehling
7. DLT and the Voluntary Carbon Market Nicholas Scott, Sai Nellore, and Alastair Marke
8. The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) Dessa-nin Ewèdew Awesso
9. DLT and Networked Carbon Markets Justin D. Macinante
10. Conclusions, recommendations and a potential pathway for a transition to a DLT based governance for carbon markets Michael Mehling, Alastair Marke, Fabiano de Andrade Correa, and Constantine Markides
Index.

Subject Areas: Environment law [LNKJ]