The auditing and accounting of carbon credits and offsets have not been solved to date and a group of leading global companies and organisations are planning to take on this challenge through tokenization by launching the InterWork Alliance (IWA) Sustainability Business Working Group.
IWA Chair Marley Gray, Principal Architect – Azure Multiparty Engineering, Microsoft – details the work ahead in his IWA Blog: Standardizing Sustainability – How the IWA Will Make This Happen.
“The members of the IWA are planning to address the needs of the carbon emissions market with a technology-neutral solution that standardizes tokenization of key elements, clauses for ledgering templates, and market-driven multi-party analytics. We believe that this will finally allow organizations with widely divergent views to define common implementation and accounting templates that are able to eliminate fraud, incentivize behavior change, be transparent, and engage new technologies.”
“Today the IWA announced the formation of our Sustainability Business Working Group (BWG), which will establish the standards for tokenization, contractual extensions, workflows, and analytics for GHG/Carbon emissions and offsets. These standards will serve as foundations for both voluntary and regulated carbon markets using distributed ledger techniques to create an auditable ecosystem. Initially, the primary focus will be voluntary carbon market architectures and will later expand to regulated markets; the main categories of focus will be emissions, offsets, and contracts.”
“As an IWA BWG, members will work together at a business-need level to define this scenario and specific market requirements into a pre-framework draft, which the Technical Working Groups (TWGs) will use to develop open, standards-based specifications, frameworks, and tooling that enable multi-party solutions to be built that satisfy the needs of the global carbon mitigation marketplace.”
“Are you ready to join us? Become an IWA member and let’s solve this problem together!”
IWA members participating in this Working Group include Accenture, Chainlink, Climate Chain Coalition, Digital Asset, Microsoft Corp., Nasdaq, Neo Global Development, R3, SIX Digital Exchange (SDX), Xpansiv, and others.
The working group plans to establish the standards for tokenization, contractual extensions, workflows, and analytics for greenhouse gases (GHG)/carbon emissions and offsets. These standards will serve as foundations for both voluntary and regulated carbon markets using distributed ledger techniques to create an auditable ecosystem.