Environmental Mitigation Programs

1. Blockchain and IoT in Carbon Credit
Management
Yuri Anisimov
Space for Planet Earth Challenge Briefing
23 August 2021, Space Enthusiasts & Professionals Meetup (Wellington)

2. Reducing C02 emission:
measurement and remediating
Controlling Emission: Market Approach or Green
Taxes
• Green taxes are one of a variety of policy measures.
Carbon tax aims to make firms pay the full social cost of
carbon pollution
• The carbon trade originated with the Kyoto Protocol, a
United Nations treaty that set the goal of reducing global
carbon emissions and mitigating climate change starting
in 2005.
• Carbon trading is a market-based system designed to
reduce the greenhouse gas emissions by creating a
financial incentive: buying and selling of credits that
permit to emit a certain amount of carbon dioxide

3. Carbon Trading Programs
Numerous dispersed
programs with
incompatible
requirements, high
transaction costs and
low liquidity
instruments 3
Isolated systems
under rigid centralized
government
regulations with high
transaction costs and
non-fungible
instruments
Solves the issues of
fraud, double
counting of assets.
Unlimited options for
linkage,
interoperability and
program integration,
fungibility of
instruments at
discretion of
numerous market
stakeholders with
negligible transaction
costs.
Voluntary
programs
Mandatory
programs
Distributed
Blockchain-based
network

4. Market SolutionRequirements-Blockchain
• Data Collection: automated and real-time sensors
• Data Veracity: immutable data storage, privacy, trusted
sources
• Model of interactions of market participants
• Model to allocate resources efficiently - fair distribution of
public goods (solving the Tragedy of Commons)
• Market participants agree on the distribution of liability
• Safeguards (reserved minimum price) - Dutch Auctions
• Low to negligible transaction cost
Framework under which the communities can sustainably self-govern
themselves. The decentralized and self-enforcing nature of blockchain-
based smart contracts guarantees that decisions, made within this
framework, are executed without censorship or control from higher-level
authorities.

5. DAO IPCI
Decentralized Autonomous Organization
the Integral Platform for Climate Initiatives.
Carbon Auctions based on Trusted Sensors on
Robonomics Network

6. Blockchain-basedecosystemforenvironmental
assets,liabilitiesandcarbonmarketinstitutions
DAO IPCI provides for
the users to allocate
and manage
environmental assets
and liabilities through
distributed ledgers
stored in Blockchain.
The technology ensures
transparency and
reliability of
transactions, possibility
of global interactions
with carbon market
institutions, including
carbon registries and
remediation

7. Model of Social Enterprise
• Elinor Ostrom’s eight design principles can give us great insights into how economic
cooperation can succeed and a basis to create a sustainable self-governing organisation of
community translated to blockchain smart contracts:
• Clearly defined boundaries through token-based membership (Principle 1),
• Blockchain governance for collective decision-making with local conditions at check
(Principles 2 & 3),
• Intelligent machine monitoring & learning (Principle 4),
• Graduated sanctions and easy-to-enforce conflict-resolution mechanisms through
increasing stakes and smart-contract judge (Principles 5 & 6),
• Higher-level recognition and nested design by programmable censorship resistance and
complexity (Principles 7 & 8)

8. Token Economics - Quantifying Social Costs
The seller and the buyer agree on distribution
of liability: market approach based on the
Coase Theorem, indemnification of social costs
by the producer or reimbursement of relevant
production costs to the producer.
In the transaction-based model, the four
parties (the seller, the buyer, the offset
provider, and the 3rd party (the injured or the
claimant) negotiate directly and separately with
each other on quantification and on price.
The seller and the buyer should agree on the
distribution of liability, and negotiations with
the 3rd party should include the elimination or
offsetting of current impacts and the
reimbursement for harm incurred and
accumulated.
Token Emission
Buyer Seller
MARKET
Goods &
services
Offsets
provider
‘3d
Party’
SUPPLY
MITIGATION/
ADAPTATION
DEMAND
COMPLIANCE/LIMI
TS/ COMMITMENTS
DEMAND
CLAIM
FOR
DAMAGES
EVALUATION BY THE
NETWORK
POS-BASED EMISSION OF
PAYMENT TOKEN
TOKEN
HOLDER

9. Robonomics Network
• Robonomics is a secure and cost-effective IoT platform for
connecting cyber-physical systems under web3 technologies
control, which aims to create the economy of robots.
• Robonomics implements the exchange of technical and economic
information in the form of atomic transactions between devices,
user applications, and IoT services.

10. Inside Robonomics
Based on Ethereum and Polkadot
ecosystem for secure transactions
Uses InterPlanetary File System (IPFS) for
data storage
Allows to connect devices using the
HTTP / MQTT and Robot Operating
System (ROS)
Operates with digital twins of devices
API library for custom IoT applications
The first tools of the robot economy:
money for robots, contracts for robots
Robonomics opens:
• Building an open sensor network
• Building the sensor network with a data subscription
mechanism
• Making of an IoT data marketplace

11. Free Open Source Solutions
Hakathon
Demonstration:
Kusama on Mars
https://www.youtube.co
m/watch?v=31zXeUq3htE
• DAO IPCI — public blockchain protocol accelerating green economy growth
• https://ipci.io/; https://medium.com/dao-ipci
• Robonomics - the infrastructure for the smart robotic grid of tomorrow;
https://robonomics.network/; https://blog.aira.life/
• Evercity -Digital platform for impact measurement,
management and investment https://www.evercity.io/
• Extending The platform for other polluting factors (nitrates, phosphates.. ) for
export-oriented economy: logistics - AgriData Trade
contact