Hyperledger Foundation Supply Chain, 6 Oct 2022

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From YouTube: Blockchain - Sustainable Supply Chain, SDG, Climate & Carbon Credit Tokenization - Kamlesh Nagware

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Blockchain - Sustainable Supply Chain, SDG, Climate & Carbon Credit Tokenization - Kamlesh Nagware, Snapper Future Tech

Blockchain is fundamentally a technology of trust, blockchain has trust, openness, and transparency built into its design, its benefits are wide-ranging and impact multiple Sustainable Development Goals (SDGs). Blockchain has the potential to impact all 17 SDGs but here I will talk about specific to SDG7: Affordable & clean energy, SDG9 & 12: Build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation & Responsible production & Consumption(Sustainable supply chains) and SDG13: Climate action where blockchain technology already being used to help achieve these SDGs effectively & efficiently. Hyperledger foundation has a special interest group “ Climate Action SIG” for The Climate Action & Accounting (CA2) Special Interest Group (SIG) will foster and engage a multi-stakeholder network to exchange ideas, needs, and resources in order to develop and consolidate open-source DLT solutions for a common climate accounting mechanism and frameworks. Blockchain technology can be the key that underpins the improved governance we need to meet the SDGs by 2030.

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A

Hello all good morning, so uh in this current scenario we understand the climate change, environment, impact and global warming and all this stuff. So so here I'm not going to talk about the the ethereum blockchain and some kind of energy utilization, energy consumption by the public, blockchain networks. So I'm going to talk about the how you can use blockchain to uh impact the some climate change, sustainability goals and carbon accounting, carbon credit tokenization. All these things.

A

So so in this presentation, I'm going to talk about the three things first is about the use cases and what is happening in the current scenarios in the globally. Second, uh what my combination of future take doing in the space and third like uh hypolays, are having a climate action, accounting uh sigs and what we are doing there so and how the high pleasure Community is helping to be run. That initiatives.

A

Video to play, but it's not playing so I, think but anybody everyone understand. The climate change is global warming. What is happening in the Europe's global warming, space, floods in India or floods in Pakistan, and and that's why United Nations sdg put the goals to to how to we can reduce the carbon footprint by 2030 in Net Zero by 2050, and all this cop 26 and different Paris agreement all this stuff.

A

So how and I think.

A

So I think this.

A

These are the 17 sustainable development goals, where we have no power, t zero hunger and all this multiple goals in there, especially the goal number 12, where we talk about the sustainable supply chain and goal number 13, where the climate actions so and I I think uh blockchain could be very helpful to tackle these two goals very effectively, because either trust and transparent transplant technology, and when we talk about the sustainability or climate change, we always heard about all these terms like carbon, offset CO2 emission reduction and renewable energy and greenhouse gases CO2 and all this stuff.

A

We keep hearing all these things so and.

A

So ah especially, these two goals can be achieved and can be very effectively uh uh help to achieve the STG goals by United Nations blockchain, because blockchain have trust, transplants and traceability. Inbuilt.

A

So ah how ah actually, in the upper side, you can see like the climate action, we are, how we are taking the different actions and measurement to prevent the climate change and in the below side, you can see like how the digital world or how the blockchain or any other kind of Technologies could properly account the this climate change over climate action.

A

So generally, if you don't, if you don't able to account the proper what the carbon footprint emissions you're trying to save and like, for example, suppose every country and every state hung there, there is specific goal to achieve some some targets, but if you're not doing a proper accounting so like currently the Vera and gold distance having such some some kind of their mechanism to, ah for example, if someone doing some renewable energy projects in India somewhere and now he need to submit the how much carbon footprint they are.

A

Saving and then carbon credits to be issued by the way around gold standard. But all is centralized repositories and uh whatever the projects submitting the data, they need to trust.

A

So if, if we build the system with blockchain- and we will record the all the carbon footprint in the whether in the supply chain, whether it's renewable energy projects, whether it's the deforestation and all this stuff, you could properly account the carbon accounting and climate accounting, and then this will help you to measure the how much carbon footprint you actually saving and then in the second part you could use this carbon footprint string is the carbon credit tokens, which is a?

A

Maybe you see in some carbon credit lots of marketplace coming carbon nfts are there in the market, so I will talk about some success. Historians of some already available, Solutions implementation in blockchain, hyper Ledger, whether ethereum or any other so, and why blockchain so because blockchain is a trust, openness and transparency built into design and uh that way whatever you are ah accounting.

A

You can do some kind of trust with that data, because, because ah in in the sustainable supply chain, with a renewable energy projects, all the mechanisms you could have all your data data point ESC reporting properly using the blockchain.

A

So uh these are some use cases in the specific industry. Wise in the like, renewable energy is a RAC certificate, tokenization of energy, peer-to-peer trading of energy, so even lots of use cases implemented in like power, religion, one of the another company implementing the peer-to-peer energy trading and res certificate. There is a energy blockchain Consortium.

A

There is a energy web Foundation, then climate change, value of the climate, accounting, carbon accounting and credit tokenization carbon offset Marketplace, and then even there are lots of investment and efforts by the different green fintech and the VC fund, who want to invest in the some cleantech financing, startups or companies.

A

So like, for example, there is a circulate Fund in who invest in the circular economic projects and in the in the last two years they invested in the hdfs week couple of startups in the plastic, recycle and traceability ah Solutions, then ESG reporting, because every every corporate need to be responsible what they are taking measures and taking some to achieve their research. Esg compliance goals that thing circular economy, which is a bigger use cases in the plastic, recycle whether sustainable supply chain or like extended producer responsibilities.

A

So, for example, in the uh in the government have some kind of compliance to whatever the plastic or e-vest. You are genetic unit to be responsible for that to be recycled so, and there are lots of fraud happen in this kind of thing, because uh how you will ensure like, for example, is Coca-Cola and Pepsi by producing millions of bottles every year, so as per the Norms, they need to recycle some certain of the other plastic, what they are generating. So even even we are working with some customer in India for the similar space.

A

So I will talk about that in later. So all this we discuss is just just not the use case on some theoretical use case. There are lot is happening in the in the market, and people are implementing it. So I will cover some use cases specific to the industries.

A

So, like first is the carbon credit, so you can see the measurement like. So these are no reason. One of the carbon cadded Marketplace, based on blockchain they're, having a uh multiple uh carbonyl projects and uh millions of uh millions of.

A

Paid to Farmers and all things, and then climate dog, which is one of the decentralized autonomous Organization for uh carbon credit Market, the World Bank even started some kind of project for ah carbon offset the flow carbon and this last two projects happening in India.

A

This uh is a kitchen token in the two carbon empty, so they are even kind of measuring the carbon footprint in the food traceability supply chain and how much you are saving the carbon footprint using the best sustainable agriculture farming practices and then tokenizing is nfts and trading in the secondary Marketplace.

A

These are some use cases which are implemented in renewable energy sector, so like first customer is this is my customer Bitcoins. So they are, they have a. They have.

B

A

Switzerland-Based customer and they are implementing some kind of renewable energy projects microgrid in India and in a rural area where they are kind of trying to provide the renewable energy using the solar, microgrid and forth with them. Actually, we did the carbon accounting for their, how much how much carbon footprint they are saving, while people using the renewable energy in instead of the regular energy kind of thing and then tokenizing those carbonated in some kind of whether it's public blockchain, like we were using the polygon for that one.

A

Another couple of like power Ledger, which is Australian company using blockchain for P2P energy and rxc certificate energy wave Foundation, is couple of Rec projects which are doing it in Central America and then the last one. This is a one of the state in India.

A

Uttar Pradesh is a larger state in India they partner with Ministry of power and India, is smart grid task force to implementing such kind of peer-to-peer energy, Trading and carbon accounting of those energy footprint and another larger segment is a circular economy project, so it will even less circular having a bigger projects in a battery recycling or plastic recycling they recycle go surprise ever Ledger in my company is also part of some citizen projects.

A

We are doing in India for some plastic recyclers complete, invest management like imagine, you're using the blockchain waste management recycling process, how how the any plastic you are stopping to go to the ocean and then and then recycling this plastic and then ah measure the carbon footprint, saving and then tokenize it. So all this is happening ah in the industry and another is sustainable supply chain, some responsible farming or responsible supply chain so like like this is a station industry. They are.

A

They are kind of they're kind of measuring the carbon footprint in their Fashion retail supply chain and then tokenizing it so there's only use some kind of fibers to uh I was to create the cloth and manipulative thoughts and from where they are importing and from where how they are using sustainable practice.

A

So, like this in mind, half the prominence, the circular their ever Ledger and we are working with uh some customer in this space.

A

So we just discussed some couple of examples, but there are lot more. So, as per this uh blockchain for sustainability weekly uh White uh newsletter, there are more than 350 projects already using blockchain for such kind of use cases, whether the nft or whether there is a carbon accounting or maybe climate change or ESG agriculture. Supply chains to all people are implementing.

A

So ah so that I discovered in general what is happening in the industry? What what is the market size and what people doing so in the next section I will talk about the what we are doing in India and what doing with the customers. So I have a couple of case studies. What we're doing so this is. This is the doing for one of the plastic recycler in company in Mumbai, so they do millions of plastic, maybe some turn plastic recycles every year and and generally their customer, like Pepsi Coca-Cola and all the plastic manufacturers.

A

So so, as per the government Norms, they need to be epr compliant means like they need to be uh at the end of the year. They need to be compliant with the how much plastic they are recycling, so so using the our testing platform.

A

What we are doing, we are kind of uh onboarding all the different uh supply chain in the waste management, like suppose, West aggregator and then some kabaddiwala in the normal people and then recycler and then some intermediate manufacturing of this recycled plastic and then how the uh you are using this recycled product to manufacture something something new even like yesterday, I was just visited one of the stores in Ireland and very interesting to see all their clustering, some kind of like responsible, cotton or recycled product, so all all are implementing, but but maybe they are not using blockchain, but how you as a consumer, can trust what they are saying is a uh recycle products or not, but blockchain.

A

You can use that way so that we're doing with one of the customer in Mumbai.

A

And and then a similar kind of things, we are doing one of the some kind of regulatory framework where we're going to become the part of that sandbox. So there is a international finance, Services Authority, who provides some kind of innovative solution or Innovative sandboxes to the investment aspect.

A

So we using our product to in the first segment, we are recording, recording all the West recycling process and how much carbon footprint we're saving and then, in the second segment we created the some kind of carbon credit Marketplace out of this carbon footprint, saving bit done in a waste recycling process and now earlier only like suppose, some ah institutions or corporate going to be invested on the some such kind of carbon credit uh offset.

A

But now is a normal consumer can go to this platform and can offset their carbon Queen, for example, suppose if you're traveling from maybe uh India to us and how much, uh how much carbon put in by your traveler travel. So even even I seen some example where, like suppose, make my trip. This is one of the website in India for flight booking they're having a such kind of facility. After you travel, you can offset your carbon footprint, whatever you generated, while you are traveling.

A

So all this thing can be happen or is already happening in the space.

A

So we are part of this uh sandbox where we are experimenting and piloting this kind of initiative where we are uh recycling the waste and carbon footprint saving and then some kind of green financing or sustainable financing option for the retail investors- and these are some kind of the in the generally in the circular economy, especially in the weather, is a E-Waste or whether it's a plastic recycle, whether it's a battery. There is a couple of benefits in the and this project. Actually we did for one of the customer in a renewable energy sector.

A

So so they are like uh this. uh Switzerland-Based company actually uh implemented such kind of project in a rural India for uh for a renewable energy users for the consumer, but- uh and they also implemented such kind of power grid and micro, smart meters to to measure like how much energy consumption earlier they're doing with the Coal Energy or some water energy, and now they are using the solar energy.

A

So how much carbon footprint will be going to be saved, and even even not just the this data, but other data likes was what is the household income, what they are doing and their uh their expenses and all the economic specific data in one?

A

Even you can also fulfill the sdg goal number one via because you know no understand like how the farmers, or maybe rural people are, are using the electricity and then uh tokenizing this energy in some kind of blockchain, whether it's a public blocks, you know, private blockchain is depend on the whether you want to trade. This token, you know some kind of secondary Marketplace or just you want to be just on the within ecosystem.

A

So this is a typical thing. We did there, so there is a smart meter in the left and then you are measuring all the your energy consumption and energy details and then there are already predefined uh predefined formulas of predefined Standards available like, for example, if you're using a solar energy. So how much carbon footprint you're going to save and then audit certified with carbon credit and then ah tokenize, whether the nfts, whether some kind of erc20 token, and then you could trade.

A

This token, you know some kind of carbon credit platform where there is some institutional buyers or whether some Investments or some retail investors can offset their carbon footprints.

A

So so this is our ah one of the supply chain: traceability, testing platform, which we are using for multiple projects like whether the food traceability, whether it is agriculture supply chain, whether it's a plastic recycler uh for the traceability. So here is example of the food traceability, but it could be a plastic, recycle or E-Waste or battery, so that I talked about the what we are doing in this space, and here, let's understand what in the hyperledger communities we are doing so in hyperledger.

A

We I think ah before two years we started one of the climate action, accounting special interest group to start the standardizing and data points and some kind of some kind of source code which we can use to, uh uh whether it's a greenhouse supply chain or where there is a greenhouse gases or sustainable supply chain or renewable energy, or even whatever data available for the carbon, put, pin saving how we can use all this data and build some kind of ah open source platform open source projects so that we're doing doing it.

A

So there is one carbon accounting working group in the climate action Accounting Group, so there we actually implemented the hybrid blockchain kind of solution using uh hyperledger, Fabric and uh other ethereum blockchain evm based protocols. So the similar way like first, we are recording all the carbon emission Footprints having and calculating the how much carbon emissions we're saving and then tokenizing on it, and also we added the third layer on the kind of Dao platform. So even not just v as a centralized Authority approving this carbon footprint saving.

A

But we ah on boarded such kind of some third party companies or third party people who are environment friendly and want to be contribute to the space. So is a is a completely ah hybrid blockchain kind of use case, ah private blockchain fabric for recording the carbon emissions and calculating the impact and then tokenizing this carbon footprint using a evm based blockchain and then even not generating a token directly, but we're using some kind of Dow based platform to generating a carbonate tokens.

A

So even for this particular particular solution, we actually ah on the first place in the IBM call for code this year and recently even and the part of the TSC TSC committee. So essentially, we also identified uh this particular project to be nominated as a as a graduated project was in the next level project, because it's impacting and it's doing lots of stuff and we have complete code base and already running in production, so anybody can go and uh uh tokenize their carbon credit Footprints is completely open source code.

A

Thank you. So any questions.

B

So the question is for me so obviously you're creating carbon credits which have monetary value. Of course they have to be accepted then by people who trade, those monetary values. Are you at that stage yet are your? Are the captioned carbon credits that you generate? Do they already have monetary value, or is it not at that stage yet.

A

Yeah, so I got to understand about the uh value of the tokens we're generating using the thing so like currently in the market like there's a Vera and gold extender is a Some central authorities or Registries, where you could list your projects and then uh get the work edit certified. These are. This is one way, but this centralized one so and other thing uh you could use blockchain and record this thing because, like you, trusting the some kind of third party right like standard for the carbon credit, what the certifying.

A

So. Similarly, if you create the system, because Varan question is not a some kind of a government body, there are private Registries. Similarly, if you can create the some kind of trust and transparent system, maybe blockchain based Registries, so I think you'll be going to trust it. Maybe it will initially, you need to face some challenges, but and and that's why, in the this hyperledger climate action, Accounting Group, we added the Dao, the decentralized autonomous organization.

A

So whatever the carbon credit you are certifying is not certifying by so many particular agency, but whatever the different participant available where, for example, suppose some regulator or some investment fund, or some even some normal people like who care about the environment or suppose, for example, suppose suppose so. There's a one project in India and you listed as a carbon, footpincing or suppose, maybe 1000 uh credits. But current process like there is like someone need to be, go and audit that that project and list in the Veda- and this is the current mechanism.

A

But if, if people around, for example, suppose in India, who knows that project come to this doubt platform a doorway system and voting for the particular carbon footprint saving and then, when you reach some kind of uh decision making, for example, like suppose, 70 people agree like this is genuine project. And then you automatically issue the tokens to the particular project so that we added in the hyperledger climate action, accountings uh uh solution, yeah.

B

So I'm not sure got a full answer to the question there. So is it plugged into the normal hydrocarbon credit market yet or.

A

Not not yet, but I think it's available. Anybody can just be part of the system and you know yeah all right.

C

um The carbon credit system I worked on that was a retail Marketplace is not in production but as part of the research I actually had to go out and figure out how carbon credits are actually traded. Today,.

B

C

So carbon credit trading is not new. It's been.

A

B

C

A long time- and in fact the marketplaces do exist, but they're all wholesale marketplaces right, correct, so carbon is bought and sold all over the world today and in a sense in at a wholesale level. It's done so companies are listing in a sense what they're looking to buy, what they're willing to pay, what they're bidding for you're also getting offers on the other side of the fence. So it's it's not a new kind of a trade. It's just the fact that you've got a system. Now that could be used automatically.

C

That's an open source platform for that yeah.

A

I think carbon country is not a new, is a uh happening from many years, but how you can bring trust and transparency, those uh those things, those.

C

Ideas, yeah yeah right, that's a big deal because in the current one now the way a lot of those marketplaces work they just actually they're out on the internet. You can get a URL to them and you go look and you can see what in a sense is available what's traded, but it's all based on Biden offers and it's like I would call accomplish up and I'd say: okay, you know I see you're offering it twenty dollars a ton. I'll I'll pay, you 19. Will you take it? You know that kind of thing.

C

So that's really how it.

A

Has been done, yeah and, and also there are lots of projects, even they are not doing their carbon accounting. So even interactive, one of the you know, kind of cement manufacturer in I think UAE.

A

They not accounted their carbon footprint swing from last five years and due to the norms, and now they realize that there is a carbon markets out there. So for that thing how they will go, they will go with the viral gold extended to all this recording and everything, and then they will tokenize it. So, but that's a big company right but, for example, suppose like Suppose, there are many housing Societies in the world using the renewable energies in the solar panels, but they are not doing any kind of accounting and not measures.

A

So if you are not measuring such kind of footprint or savings, then how you will be achieving your sdg30 goals like by Net Zero by 2013 all these mechanisms. So so, even like suppose I know, my one of my friends complained: Bangalore uh is blockchain by some kind of uh platform, so they invest in some kind of renewable energy projects and and generally as a retail investor can go on this platform and suppose they just want to invest 100.

A

They can invest in this project and this recording the blockchain and you can really see like whatever the amount I invested, is really, if deployed in the projects. So and so now, people are aware, so even they partner with some kind of luxury car dealer dealers in India. So if any person go for buying a one big car and they Now understand like it's going to be- maybe uh carbon emission for the next five years. So as a environment friendly person, maybe I will go and invest in such kind of projects.

A

Like suppose, my car is going to be pollute this much the environment, so let's invest in such kind of projects. So only this kind of things already happening and people are aware so in the future I believe- is going to be big space and blockchain going to play very important role.

A

So every country is even like recently uh Indian government is uh even kind of making a law like you can't export the carbon credit generated in India because because currently like uh really uh Europe is a largest market for carbon credit buyers and uh India wears lots of carbon projects are implemented with the renewable energy. All these things, but generally people are they're just exporting to the other countries so, and the lots of government initiative in all this and yeah.

A

Any more questions.

A

Yeah yeah Mike.

D

Thank you for your talk. um I guess I was hoping you could provide more General feedback on what you're, seeing in the market that you're in around the drivers for adopting these systems. So whether it's you know to generate credits for for value or if it's more user-driven um being you know, asking the companies to do that or if it's more legislation. This is something they have to do or whatever you see, the main drivers are so.

A

I think one thing is legislation and another is like now: People Like Us understand: okay, like how much is uh impacting the climate. uh In the recent times, we've seen that this kind of uh global warming issues, and uh even even like just mentioned that yesterday I went to the island market and I buying some clothes. So every class I was seeing some kind of like this.

A

A sustainable cotton or recycled recycled plastic is very good actually because and- and we people like feel happy and some kind of thing like we are contributing something to the environment.

A

So so I know one of the my friends company in India uh called you know you can take a name infinitense, so they uh onboarded uh kind of millions of customers on their platform, uh the farmers actually who are generating some kind of cotton in India, and there are a couple of customers like WellSpan and some prativa Intex and how they are, how this farming done for the cotton, what kind of fertilizers, what kind of pesticides they are using and the even the farmers economy, everything and then in one disability of the your cloth and this is live in production.

A

People are using it. So if you're buying a t-shirt over shirt, you can just scan the QR and get the end-to-end details about thing and even like consumers, suppose, if you want to be donate, something you can donate to the particular Farmers out there.

A

So I think couple of initiatives. Even we are working with a couple of customers in the same segment, whether the affection retail supply chain, whether a plastic, recycle, E-Waste battery.

A

Pretty any more questions.

A

Okay, thank you.