The Need for a Voluntary Carbon Market
As previously explained, carbon emission rights sales occur when corporations find it challenging to reduce their carbon emissions internally. Therefore, companies that do not exceed a certain level of emissions can generate revenue by selling their carbon emission rights. Companies profiting from these sales can invest in various carbon offset projects, enhancing their brand image and generating additional revenue.
Revenue from carbon emission rights sales can be spent on building an environmentally friendly and sustainable business environment. This helps companies reduce their carbon footprint and establish more eco-friendly and sustainable business models through carbon emission reduction and offset projects.
Carbon offset projects and emission rights are closely related. Currently, there is no voluntary carbon emission rights market for issuing, managing, operating, or trading these rights. Most carbon emission rights are operated by national and regulatory bodies, making it difficult for individuals or small businesses to access them, and even large corporations cannot adjust emission rights in detail. This leads to various issues, such as energy inefficiency in contrast to the goal of energy efficiency.
To address these problems, there is a growing call for the formation of a voluntary carbon emission rights market. However, concerns about establishing market rules, procedures, and standards exist. A solution to these concerns and meeting market expectations is the formation of a voluntary market through governance and social groups.
Governance groups would handle the rules, procedures, standards, operation, and management of the carbon emission rights market. All decisions in the governance group are made by its participants, and all details are transparently disclosed through blockchain, enhancing market trust and efficient expansion through diverse opinions.
Social groups consist of corporations, organizations, and individuals willing to participate in the formed ecosystem. They contribute to carbon neutrality by purchasing and utilizing carbon emission rights, sharing information on various carbon offset projects, and enhancing understanding. This promotes the continuous development of the voluntary carbon market. Governance and social groups cooperate to issue, manage, operate, and trade carbon emission rights, achieving a sustainable ecosystem and carbon neutrality.