Developing countries have been facing challenges regarding becoming more sustainable. As developing countries are fast-growing, they not only have to keep up with the momentum and maintain their economic growth, but they now also have the issue of developing sustainably. There have recently been protests by citizens in developing countries as they are suffering due to climate change with increasing loss and damage. Many of them find it unfair that they have to pay for the damages and bear the brunt of the devastating consequences of climate change.
In addition, emerging economies’ lack of technology infrastructure and capital puts them at a disadvantage when it comes to building or developing sustainability solutions to combat climate change. Due to structural limitations between emerging economies and developed countries in the areas of technology and innovation, they are not able to develop sophisticated technologies to head toward sustainability as easily.
Furthermore, the increasingly tightening rules and regulations imposed by developed countries including the EU’s Carbon Border Adjustment Mechanism (CBAM) puts emerging economies in a difficult position. Most Southeast Asian economies rely on EU trade and hence would be severely affected by the potential CBAM charges, which hold exporters accountable for the direct and embedded emissions of their goods as they enter the EU. The carbon taxes may potentially hurt their economies as producers may offset the extra costs to consumers.
That’s why at MVGX, as a green exchange, we strive to help emerging economies by providing them with the necessary technology to quantify their organization’s carbon footprint and offset their carbon footprint. This is done through our Carbon Management System, which consists of 3 components: carbon credit, carbon footprint, and carbon neutrality. These components help corporations begin their path toward carbon neutrality and they can choose which components they want to incorporate.
Furthermore, our carbon neutrality token solves the Nationally Determined Contribution (NDCs) issues established in the Paris Agreement. This is due to the proprietary distributed ledger technology we have developed to freeze’ these carbon credits at the point of issuance in their host country and then track these Carbon Neutrality Tokens as they are bought and sold on MVGX, preventing doubling counting. Hence, this enables emerging economies to continue their cross-border carbon credit trading on the Voluntary Emissions Market without triggering the UN’s NDCs. To learn more about what carbon credits are, watch our video here.
As a green exchange, we encourage corporations and organizations to start on their journey toward carbon neutrality today. As our Chief Strategy Officer, Michael Sheren, mentioned in the Fireside Chat with the Co-Chairs of the G20 Sustainable Finance Study Group:
“All the changes, all the technology for a new sustainable economy are there, basically we just need for that impetus, that drive, to take place to get them on.”
Hence, more needs to be done to aid the shift toward sustainability and fuel the move toward carbon neutrality and net zero.
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