Transforming Climate Finance and Green Investment with Blockchains

Book Description

Transforming Climate Finance and Green Investment with Blockchains establishes and analyzes the connection between this revolutionary technology and global efforts to combat climate change. The benefits of blockchain come through various profound alterations, such as the adoption of smart contracts that are set to redefine governance and regulatory structures and transaction systems in coming decades. Each chapter contains a problem statement that describes the challenges blockchain technology can address. The book brings together original visions and insights from global members of the Blockchain Climate Institute, comprising thought leaders, financial professionals, international development practitioners, technology entrepreneurs, and more.

This book will help readers understand blockchain technology and how it can facilitate the implementation of the Paris Agreement and accelerate the global transition to a green economy.

  • Provides an authoritative examination of this emerging digital technology and its implications on global climate change governance
  • Includes detailed proposals and thorough discussions of implementation issues that are specific to green economy sectors
  • Relates innovative proposals to existing applications to demonstrate the value add of blockchain technology
  • Covers blockchain for the smarter energy sector, for fraud-free emissions management, to streamline climate investments, and legal frameworks for blockchain-based climate finance

Table of Contents

  1. Cover image
  2. Title page
  3. Table of Contents
  4. Copyright
  5. List of Contributors
  6. About the Editors
    1. Managing Editor
    2. Associate Editors
  7. About the Lead Contributors
  8. Guest Foreword
  9. Guest Biography
  10. Editor's Prologue: Blockchain Movement for Global Climate Actions
  11. Interlude I: How to Read This Book
    1. How to Read This Book
    2. Section 1: Scene-Setting – What’s Going On?
      1. Chapter 1. A Conversation with Dr. Kelce Wilson on the Foundations of the Blockchain
        1. Abstract
      2. Chapter 2. A Conversation with Masterminds in Blockchain and Climate Change
        1. Abstract
        2. 2.1 Unleashing the Potential of Blockchain in Addressing Climate Change
        3. 2.2 Blockchain’s Role in Peer-to-peer Energy Trading
        4. 2.3 Closing the Private Finance Gap
        5. 2.4 Restoring Faith in Climate Negotiations
        6. 2.5 Finance 4.0.—Incentivizing a Sharing Economy
        7. 2.6 The Future of Blockchain
        8. References
      3. Chapter 3. Blockchain 101: What is Blockchain and How Does This Revolutionary Technology Work?
        1. Abstract
        2. 3.1 Introduction to Distributed Ledgers
        3. 3.2 Examples of Distributed Ledgers
        4. 3.3 The Four Main Use Cases of Distributed Ledgers
        5. 3.4 Challenges and Road Ahead
        6. 3.5 Conclusion
      4. Chapter 4. Decoding the Current Global Climate Finance Architecture
        1. Abstract
        2. 4.1 Introduction
        3. 4.2 Scale of Climate Investment Required
        4. 4.3 The State of Climate Finance Post-Paris Agreement
        5. 4.4 Climate Finance Market Observations
        6. 4.5 Barriers for Unlocking Climate Finance
        7. 4.6 Current Climate Finance Instruments to Bridge the “Gap”
        8. 4.7 Problems with Climate Finance Tracking
        9. 4.8 Blockchain—The Trust Machine
        10. References
  12. Interlude II
    1. Section 2: Blockchain for Smarter Renewable Energy Deployment
      1. Section 2. Blockchain for Smarter Renewable Energy Deployment
      2. Chapter 5. How Blockchain can Democratize Global Energy Supply
        1. Abstract
        2. 5.1 Introduction
        3. 5.2 Section 1: Blockchain for Energy’s Opportunities and Challenges
        4. 5.3 Section 2: Case Studies
        5. 5.4 The Sun Exchange
        6. 5.5 SolarCoin
        7. 5.6 Conclusion
        8. References
      3. Chapter 6. How Blockchains Will Industrialize a Renewable Grid
        1. Abstract
        2. 6.1 From One to Many to Millions
        3. 6.2 Distributed Grid Meets Distributed Computing
        4. 6.3 Financing the Future
        5. 6.4 Some Assembly Required
        6. References
      4. Chapter 7. Efficient Power Markets: Reimagining the Global Market with Ethereum
        1. Abstract
        2. 7.1 What’s Wrong with the Power Market Today—The Birth of Volt Markets
        3. 7.2 Public Blockchain for Global Power Trends
        4. 7.3 The Vision: Trading Renewable Energy Certificates on a Global Blockchain Platform
        5. 7.4 Design Philosophy for Energy Assets in Peer-to-peer Trading Systems
        6. 7.5 The Rise of New Assets and Market Efficiency
        7. References
      5. Chapter 8. Flexibility Trading Platform—Using Blockchain to Create the Most Efficient Demand-side Response Trading Market
        1. Abstract
        2. 8.1 Introduction
        3. 8.2 What is Blockchain?
        4. 8.3 What is DSR?
        5. 8.4 The Need for a Liquid, Efficient Flexibility Market
        6. 8.5 Flexibilty Market Redesign
        7. 8.6 Collaborative Trading
        8. 8.7 Centralized Monopoly vs. Decentralized Blockchain Platform
        9. 8.8 Transformation Potential of Blockchain in DSR Trading
        10. 8.9 Closing Remark
        11. References
      6. Chapter 9. NRGcoin—A Blockchain-based Reward Mechanism for Both Production and Consumption of Renewable Energy
        1. Abstract
        2. 9.1 Introduction
        3. 9.2 Traditional Support Policies
        4. 9.3 NRGcoin Concept
        5. 9.4 Practical Implementation
        6. 9.5 Conclusions
        7. References
  13. Interlude III
    1. Section 3: Blockchain for Smoother International Climate Finance Transfers
      1. Section 3. Blockchain for Smoother International Climate Finance Transfers
      2. Chapter 10. Blockchain—Powering and Empowering the Poor in Developing Countries
        1. Abstract
        2. 10.1 Introduction
        3. 10.2 Where Does Blockchain Fit in?
        4. 10.3 Immutable Identity on Blockchain
        5. 10.4 Blockchain and Tracking Financial Flows to the Poor
        6. 10.5 Blockchain and Tracking Results
        7. 10.6 Blockchain and Renewable Energy
        8. 10.7 Blockchain and Mobilization of Capital
        9. 10.8 Faster Cheaper Remittances
        10. 10.9 Crowdfunding Through Digital Currencies and Initial Coin Offerings
        11. 10.10 What Still Needs to Be Done to Take This to Scale?
        12. 10.11 Conclusion
        13. References
      3. Chapter 11. Disintermediating the Green Climate Fund
        1. Abstract
        2. 11.1 The Task at Hand
        3. 11.2 The Second Millennium Solution
        4. 11.3 Second Millennium Legitimacy
        5. 11.4 Disintermediation Potential
        6. 11.5 Decentralizing Legitimacy
        7. 11.6 Disintermediated Democracy
        8. 11.7 Voter Eligibility and Registration
        9. 11.8 Funding Decisions
        10. 11.9 Addressing Voter Engagement
        11. 11.10 Where Does the Project Stand?
        12. 11.11 Outlook
        13. References
        14. Further Reading
      4. Chapter 12. COCOA—Crowd Collaboration for Climate Adaptation
        1. Abstract
        2. 12.1 Introduction
        3. 12.2 Challenges Facing Adaptation Finance
        4. 12.3 The COCOA Platform
        5. 12.4 Challenges
        6. 12.5 Corollary: COCOA’S Contribution to the Climate Efforts
        7. References
        8. Further Reading
      5. Chapter 13. Using Smart Algorithms, Machine Learning, and Blockchain Technology to Streamline and Accelerate Dealflow in Climate Finance
        1. Abstract
        2. 13.1 CleanTek Market
        3. 13.2 Smart Algorithms
        4. 13.3 Machine Learning
        5. 13.4 Blockchain
        6. 13.5 Example 1—Deal Aggregation
        7. 13.6 Example 2—Corporate PPAs
        8. 13.7 Outlook
      6. Chapter 14. Addressing Water Sustainability With Blockchain Technology and Green Finance
        1. Abstract
        2. 14.1 “Green” as a Principle Concept: Intro, Facts, and Recent Numbers
        3. 14.2 Thinking Circular: Applying Systems Thinking
        4. 14.3 Blockchain for Commerce
        5. 14.4 Blockchain Applications for the Water Industry
        6. 14.5 Digitizing Water
        7. Reference
        8. Further Reading
  14. Interlude IV
    1. Section 4: Blockchain for Fraud-Free Emissions Management
      1. Section 4. Blockchain for Fraud-Free Emissions Management
      2. Chapter 15. Central Banks and Blockchains: The Case for Managing Climate Risk with a Positive Carbon Price
        1. Abstract
        2. 15.1 Introduction
        3. 15.2 Managing Climate Risk with a Positive Carbon Price
        4. 15.3 The Avoiding Catastrophe Storyline
        5. 15.4 The FinTech Brief
        6. 15.5 Discussion and Conclusions
        7. References
      3. Chapter 16. Carbon Deposits—Using Soil and Blockchains to Achieve Net-Zero Emissions
        1. Abstract
        2. 16.1 Carbon Deposit: An Innovative Concept
        3. 16.2 Soil Carbon Sequestration
        4. 16.3 Carbon-Deposit Payment to Farmers
        5. 16.4 Agricultural Practices and Soil Health
        6. 16.5 Policy Proposals
        7. 16.6 Soil Carbon Monitoring and Verification
        8. 16.7 A Blockchainized Soil Carbon Accounting Platform
        9. 16.8 Carbon-Deposit System—An Old Concept Run in a New Way
      4. Chapter 17. Blockchain Ecosystem for Carbon Markets, Environmental Assets, Rights, and Liabilities: Concept Design and Implementation
        1. Abstract
        2. 17.1 Background and Rationales
        3. 17.2 Decentralized Autonomous Organization Integral Platform for Climate Initiatives (DAO IPCI)
        4. 17.3 Principles of Concept Design
        5. 17.4 Environmental Units
        6. 17.5 Mitigation Token
        7. 17.6 The Way Forward for DAO IPCI Blockchain Ecosystem
      5. Chapter 18. How a Blockchain Network Can Ensure Compliance With Clean Development Mechanism Methodology and Reduce Uncertainty About Achieving Intended Nationally Determined Contributions
        1. Abstract
        2. Abbreviations
        3. 18.1 Introduction
        4. 18.2 Blockchain Enhancement of the Function of the CER Marketplace
        5. 18.3 Use of Validation CDM Data on the Blockchain
        6. 18.4 How Blockchain Technology May Benefit the CDM
        7. 18.5 Looking Ahead—Achieving the Sustainable Development Goals
        8. 18.6 Conclusion
        9. References
        10. Further Reading
      6. Chapter 19. Networked Carbon Markets: Permissionless Innovation With Distributed Ledgers?
        1. Abstract
        2. 19.1 Connecting Carbon Markets
        3. 19.2 What Types/Levels of Market Should We Support?
        4. 19.3 What Is Distributed Ledger Technology (DLT)?
        5. 19.4 DLT/Carbon-Matrix
        6. 19.5 Ledgers (Matrix 1.)
        7. 19.6 Transaction Mechanism (Matrix 2.)
        8. 19.7 Permissions (Matrix 3.)
        9. 19.8 Conclusion
        10. Reference
        11. Further Reading
  15. Interlude V
    1. Section 5: Blockchain for Better Green Finance Law Enforcement
      1. Section 5. Blockchain for Better Green Finance Law Enforcement
      2. Chapter 20. How to Trust Green Bonds: Blockchain, Climate, and the Institutional Bond Markets
        1. Abstract
        2. 20.1 Bells and Whistles
        3. 20.2 Seeking Purity
        4. 20.3 Costing Carbon
        5. 20.4 The Market that Might Have Been
        6. 20.5 Prove Yourself
        7. 20.6 The Culture of Green Bonds
        8. 20.7 The Market of the Future
        9. 20.8 Impact Reporting
        10. 20.9 The Future of Monitoring
        11. 20.10 Bring on the Blockchain
        12. 20.11 The Magic of Traceability
        13. 20.12 Blockchain in Theory
        14. 20.13 Carbon Needs a Price
        15. References
        16. Further Reading
      3. Chapter 21. Utilizing Blockchain for Better Enforcement of Green Finance Law and Regulations
        1. Abstract
        2. 21.1 Why Blockchain Matters?
        3. 21.2 Blockchain as an Enabling Instrument for the International Legal Frameworks
        4. 21.3 Blockchain in Enforcing Domestic Green Finance Law: China’s Experience
        5. 21.4 Conclusion
        6. References
        7. Further Reading
      4. Chapter 22. Blockchain and Smart Contracts: Complementing Climate Finance, Legislative Frameworks, and Renewable Energy Projects
        1. Abstract
        2. 22.1 Introduction
        3. 22.2 Smart Contracts for Self-Executing Obligations
        4. 22.3 The Dawn of a New Economy
        5. 22.4 Concluding Remarks
        6. References
  16. Editor’s Epilogue
    1. Alastair Marke
    2. Time Has Come to Blockchain as a “Trust Machine”
    3. Blockchain as an Enabler of New Climate Solutions
    4. Next Steps…
  17. Index

Product Information

  • Title: Transforming Climate Finance and Green Investment with Blockchains
  • Author(s): Alastair Marke
  • Release date: June 2018
  • Publisher(s): Academic Press
  • ISBN: 9780128144480