Ernst & Young (EY), one of the largest accountancy firms in the world, has developed a solution for monitoring carbon emissions by carbon credits to be traceable. It is going to launch a system built on Ethereum (ETH) for this purpose. EY announces this through a press release and at the company’s Global Blockchain Summit in London.
Promising blockchain application
The launch is a good example of how blockchain technology is applied today. Companies already use blockchain technology to optimize work processes. It is especially popular in the worlds of finance and logistics.
For the subject of CO2 emissions and carbon credits, the application is almost new, although competitors already exist in the blockchain world. EY has long been an advocate of using blockchain to optimize the CO2 credit system.
EY’s system uses carbon emissions tokens developed by Interwork Alliance, which is also part of the Global Blockchain Business Council (GBBC). As of now, the beta version of the platform is available.
According to the head of EY’s blockchain department, Paul Brody, blockchain is potentially the missing link between business processes and global ecosystems in various industries.
“Detailed traceability allows emissions to be tracked through tokenization, including the ability to link CO2 emissions to manufacturing outputs. Through carbon credit tokens, both created and obtained on the market, companies have the opportunity to gain insight into their efforts to reduce carbon emissions.”
Complicated sector
Companies cannot emit unlimited CO2. They have so-called CO2 credits that allow an associated amount of emissions. Transparency and traceability are common problems in this CO2 compensation system. For example, it is often not clear who owns which credits. It also happens that credits are counted twice.
Blockchain technology may offer a solution here. As soon as these credits are tokenized, the state of affairs can be accurately and above all transparently tracked. EY is not the only player trying to achieve this, but probably the most prominent one for now.