Radically innovative solutions are needed if humankind is to lower greenhouse gas emissions enough to avoid a 2°C —or worse—climate change scenario. While emissions trading markets are one potential solution, they must be improved in order to bring about market efficiency and scale to a degree of meaningful emission reduction. While blockchain technology, in theory, can improve these markets, suitable networks that can facilitate this kind of market transformation have yet to be developed. Furthermore, at present the most widely used blockchain networks are not designed to have a low-environmental impact. Thus, in the spirit of both decentralization and sustainability, ECO2 Ledger has been developed to be an emissions trading network that has carbon neutrality at its core.
By using ECO2 Ledger, users on the network are automatically contributing to its carbon neutrality through their transaction fees, which are pooled to purchase real and verifiable carbon credits. These carbon credits are then consumed to offset the emissions of ECO2 Ledger, ensuring that the network remains carbon neutral as it operates to provide a platform for decentralized carbon trading, carbon offsetting, and carbon asset storage. This process is transparent and overseen by various stakeholders within the network’s governance, including ECO2 token holders, validator nodes, and elected committee members, who are incentivized to maintain the security and reliability of the network.
However, ECO2 Ledger will not merely be a carbon-neutral carbon trading platform. Due to the features present at the contract level, third-party developers will be able to create their own applications on ECO2 Ledger. Currently, ECO2 Ledger has an application that is designed for individual carbon accounting (MyCarbon) and is scheduled to migrate on-chain and become part of the network’s decentralized ecosystem. In the future and through collaboration with various international organizations in the sustainability and blockchain industries, ECO2 Ledger will join in the development of decentralized applications dedicated to sustainability. Even if ECO2 Ledger is a success, the world will still require more radical technological innovation in the ongoing struggle to mitigate and adapt to the challenges created by global climate change.
ECO2 Ledger is a core member of the Climate Chain Coalition (CCC) and is responsible for the promotion of the coalition in Asia. The Climate Chain Coalition, supported by the United Nations Framework Convention on Climate Change (UNFCCC), is an open global initiative that fosters collaboration among members and stakeholders to advance blockchain technology and related digital solutions (IoT, Big Data, etc.) to help mobilize climate finance and enhance MRV (measurement, reporting and verification) to scale climate actions for mitigation and adaptation.
The ECO2 Foundation was conceived on June 5th 2016, World Environment Day. It is a non-profit organization that is focused on the ability of science and technology to combat global warming, to mitigate the existential crisis caused by climate change, and to contribute to the development of a decentralized future. The ECO2 Foundation registered in Singapore on June 1st 2020 as the official sponsor of ECO2 Ledger to prepare the network to go online. The ECO2 Foundation focuses on projects, international cooperation, and community building related to climate change. As communities for ECO2 Ledger mature, the Foundation will gradually transition into a supporting role to assist development.
The ECO2 Foundation is responsible for the off-chain governance of ECO2 Ledger. Their main functions and responsibilities include:
a.Formulate and modify governance of the Foundation.
b.Determine the business plan and investment plan of the Foundation.
c.Examine and approve of annual expenses, accounts and fund distribution plans of the Foundation.
d.Decide on the establishment of offices, branches and representatives of the Foundation.
e.Determine the division, merger or termination of the Foundation.
f.Determine other matters of importance relevant to the Foundation.
As climate change and carbon pollution is a global problem, it therefore requires global collaboration from international actors that is open and transparent. These principles that underlie the solution for combatting the climate problem are the same principles that guide the development of open-source technologies for the creation of a decentralized internet.
Following these principles, ECO2 Ledger is an open project that seeks to provide novel solutions for international carbon finance. All of the development for ECO2 Ledger is open-source, and can be contributed to via github.com/ECO2Ledger/eco2.
By being an open project, this allows for the development of a diverse ecosystem of applications that ensures integration between emerging technology systems and the new carbon economy. The ECO2 Ledger ecosystem is available to open-source developers around the world and is overseen by the ECO2 Foundation. To view the progress of ECO2 Ledger, please visit the testnet at testnet.eco2dapp.com/