An open-source platform for climate data has been created by the International Emissions Trading Association (IETA), the World Bank and the Singapore government in the hope it will connect carbon markets.
The Climate Action Data (CAD) Trust, headquartered in Singapore, will work with governments, and public and private organisation to share open-source information about carbon credits, which they hope will make this information easier to use by different registry systems further down the line.
It uses distributed ledger technology to bring together decentralised carbon crediting records in order to avoid double counting, and provide more robust carbon data.
Dirk Forrister, CEO of the IETA, said the launch marks a “significant step” in the evolution of carbon markets.
“It will lead to the creation of a centralised, accessible and secure digital infrastructure that national governments and private businesses can rely upon as they expand carbon markets to meet their net-zero goals. This system will provide the integrity and public trust necessary for scaling up investment in climate action,” he added.
The news comes shortly after the conclusion of COP27, where several announcements were made, including the International Organization of Securities Commissions’s consultation into compliance carbon markets, and US special envoy John Kerry’s unveiling of a new voluntary carbon trading market scheme with the aim of boosting private investment in clean energy projects in developing countries.
“There was a clear message coming out of COP27 last month that countries need functioning market infrastructure for carbon markets to achieve their climate goals,” said Chandra Shekhar Sinha, adviser, climate change group at the World Bank.
“We hope that CAD Trust becomes a critically important source of data by connecting registry systems of the voluntary and compliance carbon markets to bolster transparency and accountability in these markets to meet corporate needs and to further the implementation of the nationally determined contributions that sit at the heart of the Paris Agreement.”