Earlier this month, our Executive Chairman and Co-founder, Dr. Bo Bai, spoke at the 2023 Asia Green Tech Summit, where he and a few other panelists discussed the topic of blockchain and its capability to provide more capital flows.
In recent times, the rise of digital currency and carbon tokens is rapidly growing, with hopes of unlocking avenues for capital flow to green technology projects. As such this panel hopes to explore the potential of blockchain and how it can be used to drive sustainability projects.
Dr. Bo highlighted that blockchain provides more capital flow to portfolio companies as it enables them to track how their investments have benefitted the environment. He mentioned that with blockchain, the company would be able to transparently declare and certify its efforts with Bureau Veritas. He also emphasized that MetaVerse Green Exchange’s partnership with Oracle NetSuite allowed the world’s first enterprise finance and carbon-integrated enterprise resource planning (ERP) system to be built, allowing more accountability in green finance.
Furthermore, Dr. Bai also demonstrated how blockchain can help the carbon credits market by tracking the nationality issue. As the world moved from Kyoto Protocol to the Paris Agreement, the nationality issue of carbon credits surfaced, due to the implementation of the Nationally Determined Contributions (NDCs) from the Paris Agreement.
NDCs embody efforts by each country to reduce national emissions and adapt to the impacts of climate change, resulting in carbon, which should be free flowing around the world without borders, now having a nationality.
The emphasis on nationality results in countries having the dilemma of whether to sell carbon credits overseas or not. If they sell, they get international capital which can be used to further develop green infrastructure, but it becomes harder to meet the NDC target. If they do not sell, they may not have enough international capital for green projects which may eventually hurt their NDCs as well.
However, with blockchain, Dr. Bai highlighted that we would be able to separate the national ownership of carbon from commercial ownership, which is very useful given that many corporations and organizations are now looking to become carbon neutral. However, when they purchase carbon credits, they aim to drive their sustainability agenda rather than helping the government attain their NDCs. As such, by separating the national and commercial ownership, carbon credits can be traded between countries and corporations more efficiently, bringing in more capital flow for countries while enabling corporations to attain their sustainability goals.
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