Carbon emissions reductions(CER) are actively discussed around the world to achieve the goal of reducing greenhouse gases. At the Goodwill Crypto Conference held in Hong Kong on Wednesday, the discussion on combining the block chain with the global carbon asset exchange market, which is becoming increasingly important, was discussed.
Eco Value Coin (EVC), which hosted this event, is designed to be able to trade carbon assets by utilizing block chain technologies. Through Smart contracts, EVC coins are linked to carbon emission rights and it is also easier to make transactions between individuals. EVC will also be made possible in conjunction with credit card companies in the future, allowing them to make actual payments in crypto currency. Unlike other crypto currencies, EVC allowed the value of the investment fund to be preserved by using 70 % of the investment in the issued crypto currency to purchase carbon credits.
"As the market for carbon asset trading increases, it can reduce risk of investments since it can increase amount of value of crypto currency regardless of the market cap of crypto currency, and it can have an upper hand in carbon asset trading market that is continuously growing. " said a representative of EVC.
EVC aims to become the carbon asset trading platform coin in conjunction with major European carbon asset exchanges, including China. The EVC will soon establish a branch office in Hong Kong, followed by London, a country where carbon asset transactions are active around the world.
At the conference, several block chain experts and Xiao Ming, CEO of China's largest carbon asset exchange called GDR Carbon, also attended the conference to discuss ways to cooperate. It is a global trend to trade carbon assets with a block chain, " said representative of Xiao ming in his keynote speech. Internationally, however, carbon asset trading has difficulties in making the transaction transparent due to political and economic issues, but it has been easy to solve the problems technically if it is traded through a block chain such as EVC.
Marc Malone, CEO of EVC at the event, said, " Our business is to create a second carbon emission market through our theory and our coin EVC. If we had access to the growing carbon emissions market each year, we would have a stable blockchains that would align with the basic assets of carbon emissions rights, " he said. "EVC differentiates itself from other coins in that it has the potential to develop certain products or create assets in the future.”
In fact, the carbon trading market is expected to grow annually and 1.45 trillion won by 2020. With the international carbon market and carbon emission prices rising, these days, it has become a popular investment item. Last year, the trade volume of carbon emission reductions traded through the ETS is 2.61 billion tons, amounting to 50 billion dollars. Both the volume of transactions and the amount of transactions increased 100 percent year on ear.
There have already been several attempts to integrate the block chain into the carbon trading market, and there are some meaningful results. Based in Beijing, China, Energy Blockchain Labs and IBM are aiming to activate the carbon trading market by applying blockchain technology to carbon asset transactions. They claim they can use blockchain technology to oversee the carbon trading market and reduce the costs of managing the carbon quota.
Carbon emission regulations were adopted in 1997 with the introduction of the Kyoto Protocol, which requires developed countries to gradually reduce their greenhouse gas emissions, with major countries recognizing that global warming is accelerating due to increased greenhouse gas emissions.
Countries that have agreed to the Kyoto Protocol can produce only as much as the amount of carbon assigned to their countries, and if this is exceeded, the problem can be solved by buying and selling carbon rights between companies. About 39 countries now have a 40 trillion won annual market in the carbon emissions market. In the case of China, the world's No.1 carbon emitter, seven carbon emissions exchanges have been created in its own country, and the related block chain business is also being studied actively.
Currently, the government is leading the way in Korea to create a block chain business model. According to a research by the Korea Institute of Science and Technology Policy (STEPI), domestic block chain related government tasks were mainly about IT and finance sectors, and there were only two in energy fields until last year. Some energy demand management companies are developing blockchain based business models, but unfortunately none of them have been commercialized yet.
Reference:
http://m.ekn.kr/section_view.html?no=362189&menu=3#_enliple
