- Under the Open collaboration, the three partners will work on improving the speed and reliability of the Carbon Market’s methodology development.
- The proposed consultation will introduce a new “submission hub” in order to reduce friction in the development of new methodologies.
The IOTA Foundation has been one of the active network platforms involved with several initiatives linked to climate change and sustainability. IOTA’s distributed ledger technology (DLT) has also been one of the preferred solutions for peer-to-peer energy trading.
In the latest development, the IOTA Foundation has joined hands with Gold Standard and ClimateCHECK as part of the Open Collaboration to consult on the proposed framework that seeks to improve the speed and reliability of the methodology development, within the Carbon Market.
[ICYMI] @GoldStandard, #IOTA and @ClimateCHECK are inviting public input on a draft model framework that aims to improve the speed and reliability of methodology development within the carbon market. Let us know what you think👇https://t.co/ZwRxYldOHY
— IOTA (@iota) January 31, 2023
With this consultation, the IOTA Foundation seeks to improve data quality, accessibility, and interoperability. Besides, it also seeks to lower the transaction costs for those working on climate and other development projects.
The processes outlined in the proposed framework would drastically reduce friction in the development of new methodologies for the verification of impact across projects. It would further reduce the time required for the issuance of carbon credits and any sustainability impacts that happen outside of the carbon markets. This would be beneficial to both – project developers as well as purchasers of credits.
The proposed model under The Open Collaboration draws its cues from some of the existing industry models. This includes the Ethereum Improvement Proposal as well as the Python programming communities Python Enhancement Proposal.
New enhancements in the carbon market
Over a period of time, the Carbon Market will continue to grow bigger. But to bring the key ethos of transparency, trust, and security, it is leveraging the power of blockchain solutions offered by IOTA.
The proposed consultation details the processes for developing new methodologies with the Carbon Market and making them more autonomous. Also, the consultation dubbed “Considerations for Governance of MRV Methodologies and Infrastructure as Public Goods” will introduce a new “submission hub” in order to reduce friction in the development of new methodologies for verification of impact across projects. Ultimately, it would shorten the timescale required for the earning of carbon credits.
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In order to boost speed as well as reduce the complexity of the Carbon Market, digital transformation is essential. However, actors working from across the carbon markets have to come together to achieve this. Gold Standard, IOTA Foundation, and ClimateCHECK will now work together with the goal of improving the demand side, supply side, and interoperability of the carbon market.
Back in August 2022, under the Open Collaboration, these three partners launched three working groups consisting of a wide range of stakeholders including technical experts, market participants, and sustainability leaders. The Open Collaboration has the backing of Google Charitable Giving.