Nextgen Governance to Support Blockchain/Digital Solutions for MRV and Climate Actions

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1 Nextgen Governance to Support Blockchain/Digital Solutions for MRV and Climate Actions

2 Blockchain Part of Digital Revolution Internet of Things (IoT) connected smart devices Big Data analytics Artificial Intelligence (AI), Machine Learning 4 th Industrial Revolution (3D printing) New digitally-enabled models (Sharing Economy) Powerful Combination with Blockchain

3 Blockchain Opportunities for Climate Climate Actions Mitigation, Adaptation, Finance Carbon Markets Registries for Permits and Credits Existing Markets Differentiated Low-carbon Products Supported by Digital MRV Systems linked to Blockchain

4 Examples Xpansiv Provenance Climate Ledger Climate Chain Solar Coin/Electric Chain Power Ledger CCEG Seratio Coins Blockchain for Impact DAO IPCI Greeneum Veridium Poseidon Carbon Coin CarbonX Earth Token Earth Dollar

5 Benefits to Improve MRV and Markets Lower Costs MRV Automation with Smart Contracts Integrity Transparency and Avoid Double Counting Scalability Extensible for New Climate Actions and Sustainability Mobilize Finance into Climate Actions

6 Linked/Nested Blockchain Applications Natural Capital Supply Chain Smart Cities NDC Registry IoT, Data, Smart Contracts, Metrics and Instruments Project Climate Action Green Power Facility Climate Action Carbon Markets Emission Trading

7 Are Standards a Big Deal? The benefit of standards is estimated at 2-3% GDP $ Billions every year to develop standards If no standards and agile system to support standards, then no viable sustainability markets (integrity, efficiency, scale) that can achieve the Paris Agreement Goals

8 Climate Governance Complexity Multitude of climate actors, programs, regulations, markets, mitigation outcomes in the form of different carbon units and mitigation values Interaction with the Sustainable Development Goals (SDGs) Well over 1000 climate standards/methodologies from many sources, limited coordination

9 Climate Governance Challenge Top-down centralized governance approach is too slow for markets (and the planet) Blockchain application only as good as the data and rules (avoid bad in = bad out AND good in = bad out) Decentralized ledger needs bottom-up decentralized governance to match the need for speed

10 Nextgen Governance Project IETA and ClimateCHECK partnered to implement this project On behalf of Government of Canada (funder) and in collaboration with Pacific Alliance countries Chile, Colombia, Mexico and Peru Project funding = $1.6M Project duration = 4 years to March 2021 (leverages additional $1.4M+ for MRV) Links to related projects to pilot blockchain for MRV (expectation to link with more pilots)

11 Nextgen Governance Project Activities Multi-stakeholder engagement process of workshops and events in each of the Pacific Alliance countries Collaborase online collaboration platform and resources to support broader engagement and smart standards development 2018/Q1 Capacity building workshops 2018/Q4 2019/Q1 Practical design workshops Pilot testing with blockchain applications 2020/Q3 2021/Q1 Recommendations and Roadmap

12 Linked and Nested Blockchain Applications Natural Capital Supply Chain Smart Cities IoT, Data, Smart Contracts, Metrics and Instruments NDC Registry System Boundaries e.g. Carbon Budget Project Climate Action Green Power Facility Climate Action Carbon Markets Emission Trading Supporting Nextgen Governance System for Blockchain Democratized Online Expert Communities Consensus-based Mass Collaboration Rules for MRV, Technical, Legal, Accounting Interoperable Modular Rules Framework

13 What are Smart Standards TM community of experts for the development, management, application of standards use advanced online collaboration tools and new governance model that is more open, democratized masscollaboration consensus experts are motivated by culture change via a new economic model that is results-based on the outcomes of the use of the Smart Standards in digital solutions (e.g. blockchain MRV, tokens)

14 Building an Online Community for Democratized Nextgen Governance System Standards Development Setting and Validating Rules, Methods for MRV Knowledge Base Support Planning the Standards Modular Framework and Standards Development Online Reporting And Verification Rules and Methods for MRV Applied with Companies Supporting Resources to Enable Standards as A Living Document Contextual How to Guidance Case Study Examples Links to Data Expert Forum Link Standards 2.0 To Blockchain Standards to be Interactive Digital Feedstock into Blockchain New standards business model BC 1 BC 2 BC 3 On Collaborase Over >3000 Experts

15 Summary Points Blockchain/digital system brings efficiency and accountability, as well as enables new opportunities, but needs supporting innovation in democratized governance systems Availability of web-tools and integration with digital technologies NOT ENOUGH Need culture change (shared control, democratized governance) and new economic model to motivate experts to develop the Smart Standards

16 Thank You. Questions?

17 Standards as Interactive Documents Standard is not just a PDF, but an interactive living document with several layers of integrated content Interactive Standard Ma Re Ra Us Gu Main content that is what users need to follow to report Requirements and process followed to produce the standard Rationale and substantiation that supports development of the standard Usage by users sharing lessons learned how the standard is being used Guidance for users to support verifiability of reported information Comment Q&A discussion forums within each section/clause of the standard Surveys within each section for structured feedback Uploaded files (e.g. Excel, Word, PDF, images) as added resources

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