Learn more about the state and trends in international carbon markets "State and Trends of Carbon Pricing: International Carbon Markets"n markets, technology, and a resilient future"
Learn more about the state and trends in international carbon markets "State and Trends of Carbon Pricing: International Carbon Markets"n markets, technology, and a resilient future"
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Exploring the Potential of Emerging Technologies for Connecting Climate Markets-background

Exploring the Potential of Emerging Technologies for Connecting Climate Markets

Climate Action Data Trust
Climate Action Data Trust icon

Climate Action Data Trust

Climate Action Data Trust (CAD Trust) is a decentralised metadata platform that links, aggregates and harmonises all major carbon registry data to enhance transparent accounting in line with Article 6 of the Paris Agreement. The CAD Trust uses blockchain technology to create a decentralised record of carbon market activity with the aim to avoid double counting, increase trust in carbon credit data and build confidence in carbon markets.

Demonstrating the use of new technologies and infrastructure to track MOs and avoid double counting
What is CAD Trust?-thumbnail
What is CAD Trust?
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Purpose

Implementation

Usage

Simulations

Invitation to Collaborate

Climate Warehouse Simulation 1

Carbon Pricing and International Carbon Markets: Mitigation Action Protocol-thumbnail
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Summary Report.

Simulation I - Connecting Climate Market Systems

The Paris Agreement introduced a bottom-up approach for addressing climate change by enabling countries to pledge individual commitments through nationally determined contributions (NDCs). Furthermore, Article 6 of the Paris Agreement recognizes that Parties may engage in bilateral cooperative approaches, including through the use of internationally transferred mitigation outcomes (ITMOs), to achieve their NDCs. In the first phase, the project identified potential prerequisites and requirements of Article 6.2 and conducted a pilot simulation of a prototype to test blockchain's utility as the underpinning platform technology to connect heterogeneous registries to track units and avoid double counting issues across those registries.

Webinar: Emerging Digital Technologies for Post-2020 Climate Markets

Recorded April 14, 2024

Climate Warehouse Simulation 2

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Final Report

Simulation II – Connecting Climate Market Systems

The second phase of the Climate Action Data (CAD) Trust prototype development, which built on lessons learned from the simulation phase I, focused on testing the meta-data layer infrastructure with updated data fields. One of new features of the second phase prototype is the provision of an auxiliary application which mimics the minimum functions of a registry and thereby enables participation by country participants that currently do not have a registry. The second simulation involved broader participation, establishing 16 registry nodes and over 20 observer nodes.

Climate Warehouse Simulation 3

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Check the Public Observer Node by clicking the title below.

Simulation III – Connecting Climate Market Systems

The third phase of the Climate Action Data trust prototype development, which builds on the lessons learned and findings from Simulation II, aimed to test CAD trust on an open source, interoperable and permissionless public blockchain platform, and develop a minimum viable product to operationalize the CAD trust consistent with the recommendations from the 6-month consultation on the governance and financing model of the CAD trust that was completed in February 2022. The consultation was co-convened by the International Emissions Trading Association, the Government of Singapore and the World Bank.