One of the main types of carbon markets is the Voluntary Carbon Market (VCM). This paper builds on the Process Tokenisation Model for the public sector to empirically evaluate whether blockchain is an adequate or optimal solution for VCM, assessing its suitability for tokenisation while considering VCM processes and requirements. In summary, VCM proved optimal for tokenisation, contributing to overcoming the credibility crisis in carbon markets. As an outcome, a proposal comprised a consortium blockchain, Practical Byzantine Fault Tolerance consensus, and smart contracts. Theoretical contributions include expanding the discussion on tokenising carbon credits and the empirical confirmation of existing knowledge regarding tokenisation. Moreover, governments and decision-makers will discover valuable and practical contributions in the TO-BE proposal and guidance on selecting the most appropriate governmental process to be tokenised.

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Voluntary Carbon Market - Assessing Its Tokenisation Suitability

  • Fernando Escobar,
  • Henrique Santos,
  • Teresa Pereira

摘要

One of the main types of carbon markets is the Voluntary Carbon Market (VCM). This paper builds on the Process Tokenisation Model for the public sector to empirically evaluate whether blockchain is an adequate or optimal solution for VCM, assessing its suitability for tokenisation while considering VCM processes and requirements. In summary, VCM proved optimal for tokenisation, contributing to overcoming the credibility crisis in carbon markets. As an outcome, a proposal comprised a consortium blockchain, Practical Byzantine Fault Tolerance consensus, and smart contracts. Theoretical contributions include expanding the discussion on tokenising carbon credits and the empirical confirmation of existing knowledge regarding tokenisation. Moreover, governments and decision-makers will discover valuable and practical contributions in the TO-BE proposal and guidance on selecting the most appropriate governmental process to be tokenised.