Blockchain Application for the Paris Agreement Carbon Market Mechanism—A Decision Framework and Architecture

dc.contributor.authorSchletz, Marco
dc.contributor.authorFranke, Laura A.
dc.contributor.authorSalomo, Søren
dc.date.accessioned2020-11-19T08:30:44Z
dc.date.available2020-11-19T08:30:44Z
dc.date.issued2020-06-22
dc.date.updated2020-07-11T03:30:41Z
dc.description.abstractThis paper evaluates the suitability of blockchain technology for the Article 6.2 carbon market mechanism of the Paris Agreement. The bottom-up approach of the Paris Agreement causes challenges to the robust accounting of mitigation outcomes and information asymmetry, both of which result from a high number of heterogeneous emission accounting systems. Blockchain is an innovative technology that can act as an aggregation platform for these fragmented systems while enhancing transparency and automating accounting processes. However, this new technology is not a panacea for all problems, and the trade-offs of applying blockchain technology need to be assessed case by case. We create and apply an eight-step decision framework for testing the applicability of the technology for the Paris Agreement Article 6.2 carbon market mechanism. The analysis shows that, under current mechanism specifications, a blockchain application can enhance transparency and increase automation, thereby eliminating information asymmetry. We outline a system architecture that allows the linking of the heterogeneous systems, the integration of an Article 6.2 exchange mechanism, and the progress tracking of climate targets. This blockchain architecture offers national Parties the opportunity to co-create a decentralised system in line with the bottom-up ethos of the Paris Agreement.en
dc.description.sponsorshipTU Berlin, Open-Access-Mittel – 2020en
dc.identifier.eissn2071-1050
dc.identifier.urihttps://depositonce.tu-berlin.de/handle/11303/12015
dc.identifier.urihttp://dx.doi.org/10.14279/depositonce-10895
dc.language.isoenen
dc.rights.urihttps://creativecommons.org/licenses/by/4.0/en
dc.subject.ddc600 Technik, Technologiede
dc.subject.otherBlockchainen
dc.subject.otherdecision frameworken
dc.subject.otherclimate policyen
dc.subject.othercarbon marketsen
dc.subject.otherParis Agreementen
dc.subject.otherArticle 6en
dc.subject.otherpermissioneden
dc.subject.otherpermissionlessen
dc.subject.otherClimate Warehouseen
dc.titleBlockchain Application for the Paris Agreement Carbon Market Mechanism—A Decision Framework and Architectureen
dc.typeArticleen
dc.type.versionpublishedVersionen
dcterms.bibliographicCitation.articlenumber5069en
dcterms.bibliographicCitation.doi10.3390/su12125069en
dcterms.bibliographicCitation.issue12en
dcterms.bibliographicCitation.journaltitleSustainabilityen
dcterms.bibliographicCitation.originalpublishernameMDPIen
dcterms.bibliographicCitation.originalpublisherplaceBaselen
dcterms.bibliographicCitation.volume12en
tub.accessrights.dnbfreeen
tub.affiliationFak. 7 Wirtschaft und Management::Inst. Technologie und Management (ITM)::FG Technologie- und Innovationsmanagementde
tub.affiliation.facultyFak. 7 Wirtschaft und Managementde
tub.affiliation.groupFG Technologie- und Innovationsmanagementde
tub.affiliation.instituteInst. Technologie und Management (ITM)de
tub.publisher.universityorinstitutionTechnische Universität Berlinen

Files

Original bundle
Now showing 1 - 1 of 1
Loading…
Thumbnail Image
Name:
sustainability-12-05069-v2.pdf
Size:
1.03 MB
Format:
Adobe Portable Document Format
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
4.9 KB
Format:
Item-specific license agreed upon to submission
Description:

Collections