Recently, the ‘W (W) Foundation’ has emerged as an issue in the carbon credits industry. They will work with the United Nations Framework Convention on Climate Change (UNFCCC) to launch the campaign “Cliimate Neutral Now”.
They were the first to make a one-ton carbon offset cancellation event at the time of pre-booking. In December, HOOXI app will be introduced. W Foundation said in an interview with the app that individuals can cut greenhouse gas emissions and participate in the UN Climate Change Convention carbon offsetting campaign. The company has raised about 5 billion won through the ICO.
I am very interested in the block-chain carbon credits platform. He is also the director of Korea Carbon Finance Association. W I was interested in the Foundation, and I checked the facts of their business and interviews with friends, such as the Ministry of Environment, banks and researchers. The answer was ‘it seems to be a lie’.
The UN Carbon offset platform confirms that the W Foundation’s business is not registered with the UNFCCC. Their business type is not in the Clean Development Mechanism (CDM) methodology for carbon emissions, nor can it be a CDM methodology before that.
It is also a matter of verifying whether individual reductions in carbon emissions. W Foundation’s HOOXI apps do not recognize reduced emission reductions. It was merely a statement that “it follows the UN carbon-neutral campaign process.”
In an interview with the media, the Ministry of Environment also dismissed the idea of ”allocating carbon credits to individuals without discussing them at all with the Foundation, and it is impossible to realize.” The W Foundation has suddenly changed its words and conducted an interview with the media again saying that it does not matter if the carbon credits are not allocated.
When we judge these circumstances together, ICO of W Foundation seems to be ICO which suggests ‘a beautiful future, a reality model without profit,’ which I have always insisted on paying attention to. It means to be alert.
Most of the business dealing with carbon credits deals with ‘compensation for local government or government subsidies when individuals reduce energy consumption’. However, such a business is already carried out by many municipalities including Seoul City. There is no reason for local governments to engage in projects related to carbon credits by holding hands with places like W Foundation.
I believe that the project “Certified Carbon Emission Transaction (CCET)”, a block-based carbon trading platform that focuses on the basics without ICO, is much more concrete and realistic than the W Foundation’s project.
The idea of CCET is to implement carbon emission trading ecosystem by integrating carbon emission allowance by CDM program to prevent global warming ▲ systemize by block chain ▲ smart contract.
The CCET project is based on the Paris New Climate Regime & Agreement as well as the CDM. As part of technology development and action to reduce greenhouse gas emissions, the government also maintains partnerships with the United Nations, governments, non-governmental organizations (NGOs) and the public interest foundation. It also provides a practical solution for the CERs (Certified Emission Reductions) trading mechanism in mandatory markets.
Core implementation technologies of the CCET project platform are Energy Management System (EMS) and Energy Saving Measurement Instrument (ESMI) and Decentralized Automous Exchange (DAX).
EMS & ESMI is a system that is programmed to enable MRV, ie, ‘Measurable, Reportable, Verifiable’ verification program for carbon credits acquisition. DAX is a decentralized automated trading system with six unique encryption technologies and a random number generation program to prevent hacking.
The CCET project will be based in more than six countries, including Korea, Singapore, Switzerland and the United States. It aims to reduce energy and transportation, which accounts for more than 70% of global carbon emissions.
The CCET project gathers greenhouse gas reduction information by analyzing large-enterprise and institutional energy production, as well as small-scale energy delivery systems and decentralized transport linkage networks. Apply the CDM program methodology to replace carbon credits and create an ecosystem that manages them in a block chain.
In the long run, they will implement all market participants so that they can write tokens at network nodes (stores, financial institutions, etc.).
CCET said it did not plan to do ICOs in the early stages of the project. Even if you do ICO, it is a position to proceed after the realization of the project. They have completed technology development design and patent applications, and are experimenting with the technology as of November. As planned, in the first half of 2020, a carbon blockbuster platform that meets the UNFCCC regulations will be completed.
I am just interested in the block-carbon carbon credits platform and because I am involved in this sector, I will introduce CCET’s vision and business. To put it mildly, I think the W-Foundation is a bad example of a block-chain carbon credits platform, and CCET is a good example.
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Professor Hong Ki-hoon (PhD, CFA, FRM) is a finance professor at Hongik University. Before coming to academia, he had a career in financial affairs while working for a university asset management fund, an investment bank, and a central bank.
All. After studying economics at the University of Cambridge, UK, he worked at the Institute for Capital Markets and at the University of Technology, Sydney.
His main research areas are asset management, risk management, and alternative investment. Currently, we have various business and policy advisory activities including research advisory by UBE Mentor specializing in the analysis of SMEs and the Financial Advisory Committee.