What are the benefits of using a public blockchain?
Blockchain-enabled registries can leverage smart contracts to automate various certificate issuance, transfer, and retirement processes. This can streamline the management of these instruments, reduce administrative costs, and improve the overall efficiency of the registry. The new registry can enhance transparency, security, and efficiency, address the limitations of current registries, and provide a robust foundation for scaling up climate action and achieving global decarbonization goals.
Benefits of Blockchain-based PECs:
Transparency: A public blockchain allows all PECs transactions to be recorded transparently and tamper-proof. This enables all stakeholders, including generators, offtakers, regulators, and the public, to easily access and verify the information related to the creation, transfer, and retirement of PECs.
Traceability: Blockchain technology can provide end-to-end traceability for PECs, ensuring that the avoided emissions from renewable energy generation can be accurately matched with the induced emissions of the offtaker. This traceability can help eliminate the possibility of double counting and enable more precise accounting of emissions reductions.
Automation and Efficiency: Blockchain technology enables the use of smart contracts, which can automate various processes related to PECs, such as issuance, transfer, and retirement. This can streamline the management of PECs, reduce administrative costs, and improve the overall efficiency of PPAs.
The transparent, traceable, and secure nature of blockchain technology can provide a robust foundation for PECs, enabling more accurate and credible claims of emissions reductions and ultimately fostering more effective decarbonization efforts in the electricity sector.A global registry would also address the issue of EAC brokerage. Currently, there exists a market for EAC brokerage, where intermediaries facilitate the trading of EACs between buyers and sellers. While these intermediaries provide a valuable service, they do not add value to the system to enhance the transparency, traceability, or integrity of EACs. By consolidating the separate registries into a single, unified platform, the global registry would eliminate the need for these intermediaries, thereby reducing the cost and complexity of trading PECs.
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