At the 2022 Web Summit, Dr. Leemon Baird joined a panel titled "Is crypto that doesn’t hurt the environment possible?" This thought-provoking question was the focal point of this panel, which led me to ponder the ecological consequences of various distributed ledger technologies (DLTs) and their applications.
When discussing energy consumption and carbon emissions, people tend to immediately think of the carbon footprints left by vehicles and factories. However, it's crucial to also take into account the energy usage of proof-of-work (PoW) DLTs and their use cases such as cryptocurrencies like Bitcoin. These digital currencies require extensive computing resources and generate a significant amount of carbon emissions. In fact, the energy consumption of Bitcoin alone is equivalent to that of the entire Netherlands.
Hedera's carbon-negative network presents a sustainable option in the world of DLTs. Utilizing a proof-of-stake consensus mechanism greatly reduces carbon emissions. In addition, the network actively addresses climate change through various initiatives including developing sustainability tools, supporting green projects, and making donations to organizations working on climate trade.
In addition to its sustainable DLT, Hedera and the HBAR Foundation have also developed an open-source solution called Guardian. This framework includes a Policy Engine that allows for the creation of digital monitoring, reporting, and verification (MRV) systems for environmental, social, and governance (ESG) assets such as carbon emissions, carbon offsets, and renewable energy certificates (RECs). The Guardian provides auditable, traceable, and reproducible records that document the emission process and life cycle of carbon credits, enabling a policy-driven approach to defining projects such as carbon removal.
Hedera takes proactive measures to promote sustainability, including regularly purchasing carbon offsets and actively engaging in global forums like COP27 and Davos 2023 to raise awareness about the benefits of its technology and build bridges with world leaders and organizations to promote sustainable practices. Hedera sets an example for other DLT players to prioritize sustainability in their operations and goals.
Hedera Sustainability Use Cases
Hedera's commitment to sustainability goes beyond just theory and promises. The network has been implemented in various industries to drive real results in sustainability. Here are a few examples of companies that are using the Hedera technology to improve their environmental and social impact:
Avery Dennison, a member of the Hedera Governing Council, through its digital venture atma.io, has leveraged the power of Hedera's open-source tokenization service, The Guardian, to drive a sustainable and carbon-negative future for the supply chain industry. Hedera is extremely proud of this partnership with atma.io as it digitizes over 22 billion items and records product lifecycle events, such as creation, shipping, and sale, on Hedera.
By recording these events on Hedera, atma.io is able to establish an immutable and verifiable history for each product, helping Avery Dennison keep itself accountable for its emissions. This innovative project sets a new standard for transparency in the supply chain industry and has the potential to revolutionize the way the industry operates, leading to a more sustainable future.
Auditing and tracking climate-related data like assets and liabilities can be quite difficult with traditional methods. An ESG Public Ledger is needed to manage and verify data effectively. ServiceNow, another member of the Hedera Governing Council, is using The Guardian to track the carbon emissions of organizations by utilizing the public ledger. This provides a secure and transparent method for organizations to efficiently manage and verify their ESG data, promoting sustainability and accountability.
Verde Blocks is making history with Hedera's distributed ledger technology (DLT) by providing a platform that allows for transparent, trusted, public, verifiable, and renewable power purchases. This innovative solution not only provides large retail electric buyers with a cost-efficient and low-risk approach to purchasing sustainable power without the need for extended commitments but it also helps connect renewable energy buyers and sellers. This is a game changer for the renewable energy industry and sets a new standard for sustainable energy procurement.
BlockScience, a complex systems engineering company, has developed a pricing mechanism for semi-fungible assets through The Guardian on the Hedera network. Known as an Automated Regression Market Marker (ARMM), this mechanism allows for the efficient and transparent pricing of sustainable value energy markets, such as Renewable Energy Credits (RECs) and Carbon offset/removal Credits (CORCs).
Tamuwa, an African company that transforms carbon waste into renewable alternative fuel sources, is using the Hedera network to digitize verified emissions reductions through their platform Cynk.io. Tamuwa is the first African organization to receive funding from the HBAR sustainability impact fund. They are connecting buyers and sellers of high-quality, transparent carbon credits on the Hedera Network. This innovative project is helping to pave the way for a more sustainable future.
Hedera has pulled out another ace card from its sleeves by signing a partnership with Power Transition to revolutionise how government personnel uses electricity and power. Users will be leveraging a peer-to-peer exchange of HBAR for energy. The HBAR sustainability impact fund is sponsoring this partnership and it's currently in the testing phase. This innovative solution will be revolutionary once it becomes available to the public.
ESG data reporting
Hedera is committed to making a positive impact on society, including providing support to underprivileged communities. This is evident in its partnership with Agryo, where the HBAR sustainability impact fund is supporting Agryo in its use of Hedera's carbon-negative, transparent, and decentralized network services for data-driven predictions and loan facilitation in the agriculture industry. The Guardian framework and Hedera's smart contract and Consensus Service are utilized to provide transparent and verifiable data for informed lending decisions. This helps to open up agriculture financial markets and provide greater access to loans for those who need it most.
Ledger Works leverages the power of Hedera and the Guardian to provide state-of-the-art infrastructure and services that facilitate the audibility and discoverability of digital environmental asset data for companies, project developers, and marketplaces. The support of the HBAR sustainability impact fund has been instrumental in enabling this project to thrive.
TYMLEZ has crafted a platform to assist companies in effectively managing their carbon emissions. By utilizing Hedera and the Guardian, their solution enables institutions to achieve compliance with environmental, social, and governance (ESG) standards through the generation of carbon offset certificates, ensure the origin of raw minerals and resources they are using, and also connecting them with smart energy solutions such as microgrids and virtual power plants. This strategic partnership between TYMLEZ and the HBAR Sustainability Impact fund is an effort to eliminate greenwashing and advance the cause of sustainability.
AMIC, a premier research and technology development center for Malaysia's aerospace industry and home to esteemed partners such as Airbus and Rolls Royce, is working in collaboration with solution providers to create cutting-edge solutions for the aviation sector. TYMLEZ and AMIC have joined forces to devise a solution that enables sustainable aviation fuel (SAF) producers to accurately report their carbon emissions and maintain transparency, all built on the Hedera Network. This collaboration made possible by the support of the HBAR Sustainability Impact fund is aimed at curbing greenwashing and promoting sustainable practices in the industry.
Envision Blockchain, a services company specializing in the development of applications for decentralized and distributed networks, has formed a strategic alliance with Hedera to create a formidable policy and tokenization engine, the Guardian. This cutting-edge solution streamlines the creation and discovery of environmental, social and governance (ESG) assets.
Carbon market solutions
Mecco, a leader in data privacy and digital identity, has partnered with Hedera to create a token visualizer and wallet. Mecco's dedication to sustainability aligns well with Hedera's mission and the HBAR Sustainability Impact Fund has provided funding for this project. Mecco has also released a white paper on the topic of carbon markets, tokenization, and enterprise data challenges, which is a must-read for those in the industry.
DOVU, a revolutionary tokenized data economy for Decentralised Finance (DeFi) carbon offsetting, is dedicated to making carbon offset assets inexpensive, secure, and readily accessible for both companies and individuals, while also addressing the issue of double counting. Hedera is providing crucial support to DOVU by issuing tokenized carbon credits through the Hedera Token service, simplifying the process and reducing the cost of tokenizing these offsets for various projects. The project is sponsored by the HBAR foundation, further emphasizing its commitment to promoting sustainable practices and reducing carbon emissions.
KyrpC, a company that specializes in automating carbon offset creation and distribution, has leveraged the power of the Hedera network to develop its CarbonCore solution. This innovative solution aims to make voluntary carbon trading markets more secure, inclusive, and reliable by facilitating the development of digital Measurement Reporting Verification (MRV) workflows, audit trails, and project registration with traditional registries.
The CarbonCore project, supported by the HBAR sustainability impact fund, demonstrates KyrpC's commitment to sustainability and its use of cutting-edge technology to drive real-world results.
Zeru Earth, a company devoted to addressing climate change and constructing carbon-removal ecosystems, has partnered with Hedera to provide powerful tools to combat greenwashing. Hedera has made substantial contributions to the technical advancement of Zeru Earth, and its mission aligns with the company's dedication to sustainability. Zeru Earth is also a recipient of the HBAR foundation's sustainability impact fund, further reinforcing its commitment to making a positive impact on the environment.
Civic Ledger, a multi-award-winning company that specializes in utilizing distributed ledger technology and smart contracts to develop solutions for clients, is making a significant contribution to a sustainable future through its Water Ledger platform. This innovative platform provides a mechanism for buying and selling water assets, fostering trust and transparency in the water market ecosystem. The HBAR Sustainability Impact Fund has sponsored Civic Ledger to create a sustainable water economy through the implementation of blockchain technology.
Hedera has established a strategic partnership with the non-profit Open Earth Foundation, an organization dedicated to achieving sustainability through innovative solutions. The Open Earth Foundation aims to utilize the power of decentralized ledger technology and has sought Hedera's support in its mission. Hedera's energy-efficient network will play a crucial role in maximizing the transparency, visibility, reliability, and security of carbon-asset data.
Hedera is poised to revolutionize the price discovery mechanism of semi-fungible assets through its partnership with Object Computing. Together, they have developed a comprehensive roadmap for this groundbreaking project. Upon completion, it will offer numerous advantages, including significant scaling and expansion opportunities in energy markets and trades, streamlined compliance with legal and regulatory requirements for energy assets, and localization of carbon markets. The HBAR Sustainability Impact Fund has provided critical support to Object Computing in the development of this innovative initiative
The environmental and climate industry is hindered by a lack of transparency and trust, but Taskforce is determined to change that. By utilizing a principle-based framework, Taskforce is creating nature markets that promote the protection and renewal of nature. Thanks to the support of the HBAR Sustainability Impact Fund, Taskforce has been able to make significant strides in this endeavor, and has also established a strategic partnership with Hedera as a knowledge partner.This support has enabled Taskforce to access technological innovations and leverage Hedera's powerful policy and tokenization engine, Guardian, to accelerate development and implement real-world use cases.
Hedera is honored to support and sponsor Africa's premier carbon reduction platform, Cynk.io, through the HBAR Sustainability Impact Fund. This funding enables Cynk.io to leverage Hedera's Distributed Ledger Technology to create a sophisticated and reliable digital platform for the reporting, monitoring, verification, and trading of high-quality Verified Emission Reductions (VERs), making the process more accurate and efficient.
Aniseed, a pioneer in the creation of charity and carbon-backed NFTs, has embarked on a new sustainability innovation, by creating a series of limited-edition collectibles, each dedicated to a specific environmental or nature conservation cause. Companies can now contribute to sustainability efforts by incorporating these collectibles into their existing rewards programs. The HBAR token is a key component of this endeavor, allowing for the seamless purchase of these collectibles, and funds generated will be donated to organizations dedicated to preserving and protecting the environment.
Evercity, a carbon origination platform, has joined forces with Hedera to bring transparency to the workings of green financial organizations by making each step of the process readily visible. The HBAR Sustainability Impact fund from the HBAR Foundation has provided support to Evercity, making auditing, discovery, and liquidation simpler through the use of the Guardian, Hedera's policy and tokenization engine.
The Porini Foundation, a Swiss-based organization that seeks to maximize the impact of nature conservation through the integration of blockchain technology, has aligned its network with Hedera. The foundation's "Nature Collectables'' initiative will now be underpinned by Hedera's distributed ledger technology, which offers energy efficiency and an environmentally conscious approach to blockchain and decentralized networks.
In collaboration with Hedera, the Porini Foundation is taking bold steps toward combating climate change, and with the support of the HBAR sustainability impact fund, the transition of nature collectibles to the reliable and secure Hedera network will be seamless and effective.
Redemption DAO is a revolutionary force in the preservation of the Congo Forest, utilizing the power of WEB3 and ReFi to achieve maximum results. Through the support of the HBAR Foundation, Redemption DAO is able to fully dedicate itself to this noble cause, with $100 million in grants set to be distributed to organizations in 2022
The 2023 UCL report proves that Hedera's commitment to sustainability is truly commendable. The company's dedication to sustainability is evident in its numerous partnerships and collaborations with organizations around the globe. Rather than simply prioritizing profit, Hedera has chosen to lead the charge in developing innovative solutions to combat carbon emissions and preserve our planet. The HBAR Foundation's Sustainability Impact Fund serves as a catalyst for these efforts, providing vital support and sponsorship to organizations working towards a more sustainable future.