Climate Action Data Trust

The launch of the Climate Action Data Trust (part of the Climate Warehouse Digital Ecosystem) was announced at the Asian Climate Summit in Singapore on December 7, 2022.

Effective global carbon markets can redirect funds towards significant climate action and eco-friendly infrastructure when managed with integrity. However, current carbon markets are intricate and disjointed. Each registry acts independently, lacking a clear understanding of how they interconnect. The lack of unified registries blurs transparency. As these markets grow, there’s a shared push for increased transparency and accountability.

Data is essential. There’s global agreement on having a unified data system to streamline and speed up the collection and display of climate and carbon data. This data foundation will be indispensable for various carbon market stakeholders, including governments and businesses.

The Climate Action Data Trust uses advanced blockchain technology to create a decentralized platform for carbon credit data. This platform offers multiple benefits:

• Boosting Transparency and Efficiency: An effective carbon market needs clear transparency. CAD Trust’s system gathers real-time data from various sources, providing a comprehensive view of the market. This data aids in analytics, forecasting, and helps speed up investment decisions.
• Reducing Double Counting Risks: Currently, buyers must cross-check if a product is listed in another registry, a tedious process. Blockchain ensures every activity is unalterable and auditable. By linking global registries, the platform identifies and prevents “double counting.”
• Supporting Reporting-Compliance Needs: Blockchain ensures accountability in tracking GHG emissions, accommodating the diverse regulations and values of climate outcomes globally.
• Implementing Article 6: CAD Trust aids in the application of Article 6 by offering a shared data system. As Parties use a unified data standard for reporting, it fosters smooth interaction between national and independent registries, streamlining international reporting under the Paris Agreement.

At the time of writing, the CAD Trust is in the development stage. It has been joined by 30 organizations and 11 governments. Data Dashboard set to be fully functional by Q3 2023. It will allow immediate extraction of information about specific offsets and projects from different voluntary and national registries and will be open to the public.

CAD Trust can play a crucial role in aiding the cooperative strategies of Article 6 by aligning national registry systems internationally. As members start using CAD Trust’s unified data standard for reporting (which includes tracking project activities, authorizations, and more), it can streamline communication and resolve disputes between national and standard independent registries (Verra, Gold Standard). This will bolster international reporting as per the Paris Agreement. The shared data structure chosen by CAD Trust members might align with or be modified based on Article 6.2 and 6.4 reporting standards. In the future, CAD Trust could also make it easier for members to share their data with the Article 6 database or the UN’s CARP using APIs. This means members using CAD Trust won’t have to submit their data more than once.