System and method for bilateral trading of greenhouse gases and environmental rights

Abstract

A computer-implemented method (500), system, and non-transitory computer readable medium for collecting, monetizing, validating, continuously updating, and archiving bilateral transactions of greenhouse gas and environmental rights. The method (500) includes hosting (510) on a processing server a list of one or more land parcels with contractual development rights for carbon offset credits, receiving (520) by the processing server metrics for the one or more land parcels with contractual development rights for carbon offset credits, and verifying (530) on the processing server that the one or more land parcels with contractual development rights for carbon offset credits meet one or more conditions of development and potential entitlement for carbon offset credits based at least on the received metrics.

Description

[Technical field]

[0001] This disclosure generally relates to systems and methods for collecting, monetizing, validating, continuously updating, and archiving bilateral trades of greenhouse gases and environmental rights. [Background technology]

[0002] A carbon credit can be a tradable certificate or permit representing the right to emit one tonne of carbon dioxide (one metric ton or 1,000 kilograms) or an equivalent amount of greenhouse gas. Carbon credits and carbon markets are one element of national and international efforts to mitigate rising concentrations of greenhouse gases (GHGs). Summary of the Invention [Problem to be solved by the invention]

[0003] It would be desirable to have a system and method for bilateral trading of greenhouse gas and environmental rights (GEARS) between buyers and sellers that gives rights holders the contractual ability to bind and securely monetize those rights with validation prior to enrollment in a carbon credit certification process to support trading and development of carbon offset credits for a particular land parcel, and further verifies and updates information rights referencing one or more land parcels. Contractual development rights for carbon offset credits must also satisfy one or more conditions for development and entitlement of carbon offset credits, and GEARS addresses rights prior to certification as carbon offset credits. Such a system and method would desirably overcome or mitigate the technical challenges and significant costs of development and processing prior to enrollment as carbon credits, and would enable land rights to be secured and monetized, particularly with respect to reliable certification, verification, trading, and record-keeping. [Means for solving the problem]

[0004] According to one aspect, a computer-implemented method for bilateral trading of greenhouse gas and environmental rights is disclosed, the computer-implemented method including: hosting, on a processing server, a list of one or more land parcels with contractual development rights for carbon offset credits; receiving, by the processing server, metrics for the one or more land parcels with contractual development rights for carbon offset credits; and verifying, on the processing server, based at least on the received metrics, that the one or more land parcels with contractual development rights for carbon offset credits meet one or more conditions for development and potential entitlement of carbon offset credits.

[0005] According to another aspect, a system for bilateral trading of greenhouse gas and environmental rights in the case of these rights is disclosed, comprising a processing server configured to host a list of one or more land parcels with contractual development rights for carbon offset credits, receive metrics for the one or more land parcels with contractual development rights for carbon offset credits, and verify, based at least on the received metrics, that the one or more land parcels with contractual development rights for carbon offset credits meet one or more conditions of development and potential entitlement for carbon offset credits.

[0006] According to yet another aspect, a non-transitory computer readable medium storing computer readable program code that, when executed by a processor, causes the processor to provide an exchange for bilateral trading of greenhouse gas and environmental rights, the program code including instructions for hosting a list of one or more land parcels with contractual development rights for carbon offset credits; instructions for receiving metrics for the one or more land parcels with contractual development rights for carbon offset credits; and instructions for verifying, based at least on the received metrics, that the one or more land parcels with contractual development rights for carbon offset credits meet one or more conditions for development and potential entitlement of carbon offset credits. [Brief description of the drawings]

[0007] [Figure 1] 1 is an illustration of a system for bilateral trading of Greenhouse Gas and Environmental Rights (GEARS) in accordance with an illustrative embodiment. [Figure 2A] FIG. 1 is an illustration of a flowchart of a method for bilateral trading of Greenhouse Gas and Environmental Rights (GEARS) for the development of land parcels for carbon offsets according to an illustrative embodiment. [Figure 2B] FIG. 1 is an illustration of a flowchart of a method for bilateral trading of Greenhouse Gas and Environmental Rights (GEARS) for the development of land parcels for carbon offsets according to an illustrative embodiment. [Diagram 3] FIG. 1 is an illustration of a graphical user interface (GUI) and mobile device for verifying a market participant to an exchange according to an example embodiment. [Figure 4] FIG. 2 is a graphical user interface (GUI) diagram of a bilateral trading portal having multiple exchange applications according to an exemplary embodiment. [Diagram 5] 1 is a flowchart illustrating a method for bilateral trading of Greenhouse Gas and Environmental Rights (GEARS) according to an exemplary embodiment. [Figure 6] 1 illustrates an exemplary hardware architecture for one embodiment of a computer system. DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS

[0008] For simplicity and explanation, the principles of the embodiments are explained mainly by referring to examples thereof. In the following description, many specific details are set forth to provide a thorough understanding of the embodiments. However, it will be apparent to those skilled in the art that the embodiments may be practiced without being limited to these specific details. In some instances, well-known methods and structures have not been described in detail so as not to unnecessarily obscure the embodiments.

[0009] As used herein, the term "seller" is understood to be interchangeable with "owner," "provider," or "user," as the context dictates. "Seller" is understood to mean a user authorized to offer a contract for the sale of, for example, GEARS. The term "buyer" or "purchaser" is understood to mean a user authorized to purchase contractual rights from a "seller." It is also contemplated that a user who is a "buyer" in a first trading offering may become a "seller" in a second trading offering, since contracts may be bought and sold multiple times before delivery to an ultimate user. Additionally, both "seller" and / or "buyer" may be computers specifically programmed to be dedicated computers that buy and sell on certain events, demand thresholds, availability, social attitudes and needs, environmental criteria, party identity, and other factors programmed via software, including machine learning programs and artificial intelligence (AI) programs.

[0010] 1 shows a diagram of a system of bilateral transactions between sellers 122 and purchasers or buyers 132 of GEARS that allows rights holders to develop land parcels (as used herein, including any unit of land area) 140 for carbon offsets. As shown in FIG. 1, the system 100 can include sellers 122 and buyers 132 that have access to one or more computing devices (seller computer 120, buyer computer 130 as illustrative example embodiments). The computing devices 120, 130 communicate with a processing server 110 configured, for example, as a marketplace or exchange for processing bilateral transactions between sellers 122 and buyers 132 of GEARS.

[0011] According to one exemplary embodiment, a bilateral transaction between seller 122 and buyer (or purchaser) 122 may be for GEARS, which may be rights granted in addition to ownership of the land subject to property 140. GEARS give the holder the contractual ability to develop carbon offset credits for that particular parcel of land 140. Additionally, GEARS may be a retail product that may expand participation and access to investment and ownership in carbon markets, for example, if facilitated by the systems and methods disclosed herein.

[0012] As mentioned above, a carbon offset is a certificate representing the reduction of one metric ton (2,205 pounds) of carbon dioxide emissions. A carbon credit is a permit or certificate that allows the holder to emit carbon dioxide (CO2) or other greenhouse gases (GHG) into the atmosphere. For example, a carbon credit holder may be a developer of a project that reduces carbon dioxide emissions, in which case one carbon offset is created for every metric ton (ton) of emissions reduced. A credit may be a financial instrument that results from a project that reduces or avoids greenhouse gas (GHG) emissions. According to one exemplary embodiment, for example, a GEARS right allows a GEARS holder to develop a specific piece of land 140 carbon credits for a period of time (e.g., 20 or 50 years). GEARS rights are mutually exclusive with a formal follow-on process whereby the holder further processes or provides for this registration and development in a carbon credit registry in order to create credits and remain a tradable asset class.

[0013] According to one exemplary embodiment, purchasing rights under GEARS provides an initial consideration and additional revenue to the seller 122 in the form of a percentage of future carbon credits when the parcel of land is developed and the carbon credits are sold and / or used by the buyer (or purchaser) 132. The buyer (or purchaser) 132 of GEARS, e.g., a purchasing company, will obtain transferable rights that can be resold or parceled out for further sale, e.g., retail or institutional sales, enabling future carbon credit development due to the potential value of GEARS.

[0014] According to one exemplary embodiment, a contractual right under GEARS may be to develop a particular parcel of land 140 for carbon credits without having to specify a specific manner of development of the credits. Additionally, rights from GEARS may be attached to land 140 specific to the commercialization or development of carbon credits only, for example, and may individualize the fee allocations and contributions of the parties.

[0015] The Carbon Offset Registry tracks offset projects and issues offset credits for each unit of emissions reduction or removal that is verified and certified using the systems and methods of the present disclosure.

[0016] Registries are essential to the creation of credible and fungible offset products by recording the ownership of existing issued carbon credits. For example, credits can be issued from any of the major registries of carbon standards (e.g., Climate Action Reserve (CAR), Verified Carbon Standard (VCS), American Carbon Registry (ACR), Gold Standard (GS)) and undergo a robust verification process with International Organization for Standardization (ISO)-accredited third-party verification. All of these credits are also tracked by registries to ensure that emission reductions are not double-counted, and credits can be withdrawn from the market (referred to as deactivating credits) to ensure that they can only be claimed once. Once a project is certified against one or more of the major registries' strict sets of rules and requirements, project developers can be issued tradeable, verified credits.

[0017] According to one exemplary embodiment, GEARS are not registered or certified credits, but are merely development rights on the property, and more specifically relate only to the carbon credit development of the property. Moreover, GEARS are essentially transferable rights that allow the holder to develop carbon credits regardless of whether such development of the property and acquisition of carbon credits occurs during the term of the agreement.

[0018] A buyer (or purchaser) 132, e.g., a purchasing company, may also be able to verify credits and revoke credits once created. According to an exemplary embodiment, the verification of credits may be different from that of the registry and will occur regardless of whether the underlying rights have been developed or not. Furthermore, verification of credits, e.g., during the life of a GEARS, may use the blockchain 122 recording method specific to carbon credit development to continuously update and verify the information known about the GEARS as well as all associated and transactional information.

[0019] According to an exemplary embodiment, a monitoring system 142 may be used to record changes in the status of the land covered by GEARS from a visual perspective. Additionally, data and metrics may be obtained for one or more land parcels 140, including one or more of local precipitation, local temperature, changes in land use or deformability, public access information, permits, contracts, registrations, zoning, and ownership changes affecting the area covered by GEARS, and any specific documentation from any carbon standard verification organization if there is development of the land parcel (or property) 140. For example, according to an exemplary embodiment, the monitoring system 142 may include an imaging system configured to obtain images of the one or more land parcels 140 by, for example, a satellite imaging system, an aircraft, a drone, a balloon, and / or a land vehicle depending on the terrain using optical sensors and / or lidar, etc., positioned at or near the one or more land parcels 140. This data may then be transmitted to the processing server 110 for verification and authentication, and stored on the blockchain along with data regarding testing and measurement techniques, entity information, date and time, parcel identification information to avoid double counting, etc. In addition to images of the one or more land parcels 140, the monitoring system 142 may be smart sensing technology that collects metrics regarding the condition of the trees and / or crops of the one or more land parcels 140, for example, that are under development for carbon offset credits. For example, the metrics may include temperature, humidity, and / or tree and / or crop health indicators of the one or more land parcels 140. In some embodiments, tests can be performed to determine the actual amount of carbon being removed from the atmosphere by the land parcel 140 by calculating the biomass of the land parcel 140 with an estimation model based on various factors.

[0020] For example, for trees, physical attributes include factors such as tree size, wood density, and species, which are related to carbon capture, for example, by allometric equations. The total amount of carbon captured by a tree over its life or expected life can be determined by its biomass and these factors, and then a simple ratio can be used to derive the calculated amount of carbon in the atmosphere, for example, using a ratio of carbon to CO2 of 12.44. As an example, random sampling of trees can be used to estimate the carbon capture of a forest. The monitoring system 142 can automate data collection by collecting information such as diameter at breast height, total tree height, crown size, and species through the monitoring system 142. These measurements are then used to estimate the total biomass in the plot using allometric equations. The biomass density of the entire forest can be estimated by taking the average of all the plots and using the average to make calculations. This can be done by manual field measurements, which can be time-consuming and costly. Using the monitoring system 142 of the present disclosure, the system can significantly reduce the cost, time, and complexity of the process while reducing errors and inaccuracies. If tree growth over time can be estimated, annual carbon capture can also be estimated.

[0021] According to an exemplary embodiment, the verification process may also include outputting to one or more of the computing devices 110, 120, 130, e.g., to the processing server 110, that the one or more parcels 140 are not in compliance with one or more conditions of the development and title of the carbon offset credits based on at least one or more of the received metrics. Further, if the verification result is a finding of non-compliance, an instruction may be sent to the monitoring system 142, e.g., a light sensor or a drone or balloon, to take additional photographs and re-verify the condition of the one or more parcels 140. According to an exemplary embodiment, if the one or more parcels 140 are still not in compliance, the processing server 100 may inform, e.g., the seller 122 or the buyer 132 (e.g., parties to a contractual agreement) and / or a government agency, that the one or more parcels 140 are not in compliance with one or more conditions of the development and title of the carbon offset credits.

[0022] According to an exemplary embodiment, the verification of GEARS and corresponding information obtained may be stored in the form of a blockchain 112 to enhance the veracity of the information collected and obtained via the monitoring system 142. Additionally, the information collected about the one or more land parcels 140 may be accessible to the seller 122 and the buyer 132 via a bilateral transaction portal hosted on the processing server 110 as disclosed herein. Additionally, the information or metrics collected about the one or more land parcels 140 may be updated frequently, weekly, monthly, and / or annually. The collected information or metrics may also be accessible to both the seller 122 and the buyer 132 to verify, for example, that GEARS is being properly utilized via the bilateral transaction portal.

[0023] According to an example embodiment, the blockchain network (or blockchain) 112 may be a public, permissioned, or private ledger of all transactions in a blockchain-based network. One or more computing devices may include a blockchain network that may be configured to process and record transactions as part of blocks in the blockchain. As blocks are completed, they are added to the blockchain, thereby updating the transaction records. In many cases, the blockchain may be a chronological ledger of transactions, or may be presented in any other order that may be suitable for use by the blockchain network. In some configurations, transactions recorded on the blockchain may include a destination address to provide an update to the information recorded on the blockchain about the GEARS sold or purchased by the seller 122 or buyer 132, along with information regarding the verification and authentication of the carbon capture amounts (e.g., verification method, date, time, entity that controls the verification and authentication of the results, etc.). In some cases, the transactions may include additional or different information, such as a source address, a timestamp, etc. In some embodiments, additionally or alternatively, the blockchain may include any type of data in the form of transactions that are or should be entered into a distributed database that maintains an ever-growing list of data records that are hardened to be tampered with and unmodifiable even by its operators, and that can be verified and validated by the blockchain network using proof-of-work and / or any other suitable verification techniques related thereto to provide an immutable record that is observable yet trustworthy as to accuracy. In some cases, the data regarding a given transaction may further include additional data that is not directly part of the transaction that is appended to the transaction data. In some cases, the inclusion of such data in the blockchain may constitute a transaction.

[0024] According to one exemplary embodiment, the blockchain 112 enables seller 122 and buyer (or purchaser) 132, such as a purchasing company of GEARS, to organize, value, verify, revoke, record, and syndicate or trade updates on specific land use rights granted to the purchaser for specific land parcels 140 in order to commercialize, develop, utilize, and benefit from the carbon credits generated by the property 140.

[0025] Additionally, GEARS may differ from, for example, an Emission Reduction Purchase Agreement (or "ERPA"), which is a common purchasing option contracted between a landowner and a project developer for the provision of carbon offset credits to be issued. For example, an ERPA is a legally binding contract that allows one party to deliver verified carbon credits to another party. An ERPA generally involves a developing country government or company selling carbon credits to a World Bank trust fund. Certain terms govern the exchange and activities, and the price is negotiated prior to the signing of an ERPA; for example, all parties must agree on the amount and means of GHG emissions to be reduced over the life of the agreement, the amount of financing, and the performance metrics that trigger the payment.

[0026] As discussed above, GEARS is an agreement specific to the parcel of land 140 where carbon credits may be developed or utilized. For example, GEARS is not specific about the amount of credits, the financing, the method of developing the credits, or even whether the rights need to be processed through a carbon registry. It is noted that in the non-voluntary carbon credit market, development rights in merely unprocessed or unregistered form may be sold, albeit at a lower price than registered carbon credits. The GEARS process allows for the monetization of an asset class in a less processed form, and according to one exemplary embodiment, a GEARS purchaser is a recipient of a transferable right to develop carbon credits on the parcel of land 140. GEARS includes a complete system of ongoing rights verification, renewal, and validation, whereas an ERPA is merely a one-dimensional legal contract binding two parties, with no technology built into its existence.

[0027] Valuations for GEARS purchasers may represent an initially out-of-the-money, long-term transferable option for ownership and pricing of carbon credits. For example, some of the buyers in the pipeline may be GEARS purchasers who are able to immediately develop and value their property 140 and corresponding carbon credits, such as agricultural land that can be planted with indigo or mangroves, land where carbon sequestration technologies can be applied, or simply solar or alternative renewable projects that generate cash flow, where the ability and cost of developing carbon credits is secondary.

[0028] Further, it is desirable to have a system and method that allows these opportunities to generate carbon credits to be captured and includes validation of GEARS, including activities that may affect the land parcel 140 and information regarding development or impactful changes to the subject land. For example, a buyer (or purchaser) 132 of GEARS may trade at book value unless actual development is sufficient to change the valuation, but will trade based on a market value of carbon credits closely related to the ability or potential for development, ease of development, and whether or not it is actually under development with a third party developer. A buyer 132 (or purchaser) may purchase GEARS for a land parcel 140 that is currently little or no use or vacant from a landowner for a relatively small amount and relatively quickly. For example, pricing of GEARS may be variable with higher royalties at the end of the contractual rights, e.g., in the final years of GEARS, e.g., 5-10 years, when the carbon offset credit market is more fully developed and a larger return from carbon offset credits can be obtained.

[0029] 2A and 2B are diagrams of a flow chart of a method 200 of GEARS buyer-seller bilateral trading according to an exemplary embodiment. As shown in FIG. 2A and 2B, the process begins at step 210. At step 220, the GEARS bilateral trading method and system may rely on a stream of verified information from market participants, which may include sellers 220, buyers 222, and third parties 224. The stream of verified information from market participants allows the preservation of the value of GEARS. For example, it is desirable to have a seamless distributed protocol and suite of applications that manage the flow of information with high availability and provable security. For example, the digital identity system is a collection of open source libraries and blockchain smart contracts that allow users to create and link private, self-custodial digital identities and data stores. Additionally, a set of tools and services that allow organizations and individuals to leverage the digital identity system in a low-code / no-code environment are hosted on the processing server 110 and include verifiers 230, 232, 234 that issue credentials to access bilateral trading portals. The verifiers 230, 232, 234 may provide identity and access management, a secure file and asset storage system (e.g., a secure data storage system), a signature system (or signature systems) for digital agreements, and a messenger (or communication system) for secure communications between the seller 220, buyer 222, and third parties 224 over a bilateral trading portal.

[0030] According to an exemplary embodiment, the verifiers (or verification systems) 230, 232, 234 can be distributed identity access management applications of the digital identity system. Market participants, including sellers 220, buyers 222, and third parties 224 (e.g., identity owners), can use a combination of email, biometrics, and user-generated input to create a secure link between their natural person and a digital identity on their personal device, such as a computing system and a mobile device. The credentials issued to this identity can be issued, for example, using World Wide Web Consortium (W3C) standards and stored in the verifiers' 230, 232, 234 credential wallets to authenticate access to the integrated services. According to an exemplary embodiment, the verifiers 230, 232, 234 can be a relatively ultra-secure gateway to the rest of the integrated services provided by the processing server 110, using a secure enclave to ensure that only the natural person to whom the identity belongs can sign transactions and attestations. Verification of sellers, buyers, and third parties 220, 222, 224 using verifiers 230, 232, 232 can be the first step in a process that can be used by sellers, buyers, and third parties 220, 222, 224 to allow users to create and maintain identity and access.

[0031] According to an exemplary embodiment, each of the parties to the GEARS system 100 must sign up for access via a verifier 230, 232, 234, which provides access to the consoles of modular applications 410, 412, 414, 416 (FIG. 4) of the bilateral trading portal 420 hosted on the processing server 110. According to an exemplary embodiment, the processing server may be a cloud server. The modular applications 410, 412, 414, 416 may facilitate relatively secure and efficient transactions by providing institutional-grade tools for managing user accounts, sharing data, and executing transactions. According to an exemplary embodiment, the system 100 may provide identity and access management focused on user control (or verification), secure data storage, high security digital asset and data storage, and digital contract management (signing). For example, the management suite may include modular components that may be relatively easily employed with identity management applications based, for example, on the Android platform or iOS, for example, on an iPhone, that may be identified and accessed through, for example, an identity access management system (or verifier application 230, 232, 234). The verifier application 230, 232, 234 may act as a control center that provides GEARS participants 220, 222, 224 with self-managed, institutional-grade identity access management tools that are critical to realizing transaction cost savings achieved by lowering verification costs (by leveraging permissioned access to verifiable credentials) while simultaneously lowering data compliance and security costs (with precise identity access management).

[0032] According to an exemplary embodiment, as shown in FIGS. 3-5, the verifier application 230, 232, 234 may leverage the secure enclave of the mobile device 320 to create a self-managed identity management and access system that is relatively flexible, highly available, and verifiably secure from attacks such as device hacking. For example, the verifier application 230, 232, 234 may include an account management module that allows users to create and manage identities and aliases. For example, users or market participants in the form of sellers, buyers, or third parties 220, 222, 224 may have multiple aliases / identities that are tied to a single account, allowing for both anonymity and accountability. The system 100 may also include an authentication module that allows users 220, 222, 224 to manage passwords and private keys and multi-factor authentication. Additionally, the authentication module allows users 220, 222 to precisely manage third party 224 access to identities and other data over time. For example, this precise access management can improve security for users 220, 222, 224 and can reduce transaction costs arising from data compliance and data security costs due to unique centralized databases. Examples of identity and related data include information such as birthdate, passport details, licenses, certificates, and other credentials stored in the verifiers 230, 232, 234 and a secure data storage system that can act as a high security digital asset and data storage system. Furthermore, identity and related information and corresponding transaction authorizations in GEARS can include fully trusted blockchain based delegation smart contracts that delegate or enforce access to the approved data during the approved (or set) time.

[0033] According to an exemplary embodiment, the verifiers 230, 232, 234 may also include one or more verifier roles, which may include: (1) Minter - mints and manages GEARS, (2) Seller - original seller of GEAR, (3) Buyer - party purchasing GEAR in a transaction, (4) Holder - current holder of GEAR, (5) Third Party - ecosystem partner required to provide input information and / or certify information, and (6) Stryker - party exercising GEAR option. According to an exemplary embodiment, the verifier activity may verify each of the market participants so that they can interact with each other. Thus, the verifier acts as a control center for the console, where users can receive and respond to push notifications of required actions including messages, data sharing authorizations, and document / transaction signing.

[0034] Land parcels 240 may include details of areas covered by the GEARS databank (e.g., land parcels 140). For example, the databank may include accompanying documentation that may be compiled, verified, and time-stamped, along with certification to an accessible public blockchain 112. The databank may also include data for land parcels 140, including regional precipitation, regional temperature, regional land use / transformation, permit areas, contract areas, registered areas, regional zoning ownership, amendments affecting the GEARS covered areas, attestations, and warranties.

[0035] Additionally, a management suite can be created in GEARS with a set of tools and services that enable organizations and individuals to leverage the verifiers 230, 232, 234 in a low-code / no-code environment and consists of the verifiers 230, 232, 234 for identity and access management, a secure data storage system for secure file and asset storage, a digital signature module for signing digital agreements, and a communication system or messenger for secure communications.

[0036] According to an exemplary embodiment, the secure data storage system, in combination with, for example, verifiers 230, 232, 234, creates private and secure cloud storage. For example, the owner of a "drive" in the secure data storage system can authenticate access to their data, and all third parties, including data hosts and digital service providers, must request file access from the owner to view the data. For example, drive data can be stored using a distributed infrastructure where all actions and events, including access requests, reads, and writes, are permanently logged, eliminating the risk of a third-party corporate or nation-state actor surreptitiously accessing or destroying data from the owner's drive.

[0037] According to one exemplary embodiment, activity within the drive may include each of the parties uploading relevant data to the drive. In this manner, all data remains owned by the parties. For example, the minter may request a copy of all relevant documentation, and access to that documentation may be shared with the minter and any applicable third parties in an attestation or assurance role.

[0038] According to one exemplary embodiment, the secure data storage system may also include a "vault" that leverages an additional protocol layer to protect the most sensitive data users wish to retain, including digital assets, private keys, and passwords. The multi-signature capabilities of the vault allow organizations to build and follow bespoke governance protocols to suit their needs when validating data and transferring assets.

[0039] According to an exemplary embodiment, the vault can be a multi-cloud financial data storage with an encrypted content-addressable distributed file system, such as digital contract custody and digital bearer securities creation and secure storage. Additionally, the vault can be a highly secure data storage leveraging distributed ledger technology and requiring multi-signature authentication for any action. The vault can be designed for security-sensitive use cases such as digital contract custody and digital bearer securities safekeeping.

[0040] According to an exemplary embodiment, a digital signature module (or "sign") for signing digital agreements can provide the verifier application 230, 232, 234 with the ability to execute and store legal documents. For example, signing allows parties to generate or upload legally binding agreements enforceable in a court of law, sign those agreements using the verifier 230, 232, 234, and then securely store the agreements in a respective drive or vault, keeping the terms of the agreement private from the digital service provider. In addition to privacy, signing can provide a strong link between legal agreements and digital assets, providing a secure link between tokens and the real world of value. The signing module and corresponding software can be used by sellers 220 to create GEARS, as well as buyers 222 and third parties 224 for corresponding transactions between market participants.

[0041] According to an exemplary embodiment, in workflow / signature activity (or POST) 252, once the land (or parcel) 140 is verified with the necessary signatures in the workflow / signature module, a hash / derivative / compilation of this documentation may be minted into a non-fungible token (NFT) representing, for example, GEARS. The GEARS digital asset may then be pushed to a vault for relatively secure storage. Once the workflow / signature module is verified with the necessary signatures, a hash / derivative / compilation of this documentation may be minted into an NFT representing the updated GEARS upon execution of the bilateral exchange of GEARS between seller 220 and buyer 222 in transaction 260.

[0042] According to an exemplary embodiment, the updated / new GEARS digital asset is then pushed to the vault for high security storage. For example, the seller 220 may be invited (or requested) to update the signature's corresponding documentation with the minter. Once verified with the required signatures in the workflow / signature module, a hash / derivative / compilation of this documentation is minted, for example, into a new NFT representing a record of the past GEARS, preventing future double-spending or double-spending of the rights. According to an exemplary embodiment, the NFT is programmed to last until the current rights that were exercised expire. For example, the updated / new rights digital asset may be pushed to the striker's (or buyer's) vault of GEARS. Meanwhile, the previous GEARS may be invalidated, for example, by being sent to a one-way "burner" vault set up by the minter. The seller 220 may then be invited (or requested) to update the signature's documentation with the minter, for example, as a condition of transaction execution and / or transfer of funds.

[0043] According to one exemplary embodiment, the workflow for creation of GEARS can be SSID-enabled (Service Set Identifier-enabled) electronic documents and smart contract signing. The management suite can also include a suite of productivity tools and integrations for automation and secure signing of documents with immutable time stamps for proof of existence, including secure creation, templating, routing, and signing of documents with immutable time stamps for proof of existence.

[0044] According to an exemplary embodiment, the communication system (or communication messenger) 270 can be a chat, voice, and video communication tool. For example, communications can be fully encrypted end-to-end and securely stored in a drive or vault. Data owners can choose to keep these records completely private or can be relatively easily attached to legal agreements, transaction records, and digital assets to facilitate management of audit and regulatory requirements. For example, users and organizations can enjoy all the benefits of cloud-based digital services while eliminating the inherent counterparty risk of sensitive data being exposed to digital service providers.

[0045] According to an example embodiment, communication messenger activity may include relevant users interacting at appropriate times using a messenger application. For example, scheduled messages may be used in conjunction with workflow / sign-up to gather attestations or request updated documentation from sellers 220 and third parties 224.

[0046] According to one example embodiment, GEARS trades and transactions 280 may also include a digital order book that may be provided for the formal process of matching, settlement, or transfer of ownership and custody. For example, the digital order book may be recorded on the blockchain 112.

[0047] Additionally, initially, updating 290 of the information for, for example, land parcels 140 may occur at set intervals, e.g., for some data, information updates may occur at least annually, with sources of information that may include local precipitation, local temperature, local land use and variability, permit areas, contract areas, registered areas, local zoning, ownership, changes affecting areas covered by GEARS, and certificate / warranty updates. For example, the set intervals may be weekly, monthly, and / or annual. According to an exemplary embodiment, the final step in updating may include verifying the updated information, and if the information is verified, the data is added to the GEARS data bank.

[0048] 3 is a diagram of a graphical user interface (GUI) 312 of a computing device 310 and a mobile device 320 for verifying a market participant according to an example embodiment. As shown in FIG. 3, a market participant, e.g., a seller 220, a buyer 222, and / or a third party 224, can access a bilateral trading portal (or exchange portal) hosted on a processing server 110 by retrieving a "Sign In" page 314 of the bilateral trading portal. At the "Sign In" page 314, the market participant can obtain a code 330, e.g., a matrix code or a two-dimensional code (e.g., a QR code), displayed on the sign-in page 314 on a smart device, e.g., a mobile device or smartphone 320. For example, a code 330 as shown on sign-in page 314 of graphical user interface 312 may be scanned with a smart device, and if the market participant is authenticated, the market participant may be automatically logged into the bilateral trading portal, for example, via a combination of email, biometrics, and user-generated input, along with the security features of the mobile device or smartphone 320, creating a secure link between the market participant and the digital identity of its mobile device or smartphone 320 based on the captured code 330.

[0049] As mentioned above, the identity or credential issued to the market participant 220, 222, 224 may be issued using, for example, World Wide Web Consortium (W3C) standards and may be stored in the credential wallet of the verifier 230, 232, 234 to authenticate access to the integrated service. According to an exemplary embodiment, the verifier 230, 232, 234 may be a relatively ultra-secure gateway to the rest of the integrated services provided by the processing server 110, using a secure enclave to ensure that only the natural person to whom the identity belongs can sign transactions and attestations. Verification of sellers, buyers, and third parties 220, 222, 224 using verifiers 230, 232, 232 can be the first step in a process used by sellers, buyers, and third parties 220, 222, 224 to allow users to create and maintain identity and access.

[0050] According to one exemplary embodiment, once a market participant 220, 222, 224 is granted access to the market or exchange portal 400, for example, each market participant in the GEARS system may have access to a number of applications 410, 412, 414, 416 as shown in Figure 4 that facilitate secure and efficient transactions by providing institutional grade tools for managing user accounts, sharing data, and executing transactions related to buying and selling GEARS, as disclosed above, via a verifier 230, 232, 234. One or more of the applications 410, 412, 414, 416 may provide, for example, bilateral trading, related position exchange, trade, block trading strategies, and tools for calculating and offsetting greenhouse gases (GHG). Additionally, one or more of the applications 410, 412, 414, 416 may include tools for buyers and sellers to calculate the carbon content so that buyers and sellers can calculate the environmental impact of buying and selling GEARS on a bilateral trading portal and bundle it with the correct number of carbon offsets.

[0051] 5 is a flow chart illustrating a method 500 of GEARS bilateral trading according to an exemplary embodiment. As shown in FIG. 5, in step 510, a list of one or more land parcels with contractual development rights for carbon offset credits is hosted on a processing server. In step 520, metrics of one or more land parcels with contractual development rights for carbon offset credits are received on the processing server. In step 530, the processing server verifies, based at least on the received metrics, that the one or more land parcels with contractual development rights for carbon offset credits meet one or more conditions of approval as GEARS and development and title of carbon offset credits with reference to a protocol.

[0052] According to an exemplary embodiment, the method further includes documenting, on the processing server, public information of the one or more parcels of land having contractual development rights for the carbon offset credits, and documenting, on the processing server, one or more of permits, contracts, registrations, zoning, and ownership of the one or more parcels of land having contractual development rights for the carbon offset credits. Additionally, metrics of the one or more parcels of land having contractual development rights for the carbon offset credits can be received from an imaging system. For example, the imaging system can receive images from one or more of an optical sensor, a satellite, an aircraft, a drone, and a weather balloon.

[0053] According to one exemplary embodiment, the method includes receiving, by a processing server, metrics from smart sensing technology for one or more parcels of land having contractual development rights for carbon offset credits, where the metrics received from the smart sensing technology include one or more of regional precipitation, regional temperature, and regional land use or transformation change. The metrics for the one or more parcels of land having contractual development rights for carbon offset credits may be recorded, for example, on a blockchain associated with the processing server.

[0054] According to an exemplary embodiment, publicly available information of the one or more parcels of land having contractual development rights for carbon offset credits and one or more of permits, contracts, registrations, zoning, and ownership of the one or more parcels of land having contractual development rights for carbon offset credits may be recorded on a blockchain associated with a processing server. Further, the method may include providing, on the processing server, a status of the one or more parcels of land having contractual development rights for carbon offset credits, the status including ownership of the one or more parcels of land having contractual development rights for carbon offset credits, ownership of the contractual development rights of carbon offset credits of the one or more parcels of land having contractual development rights for carbon offset credits, and status of the contractual development rights of carbon offset credits of the one or more parcels of land having contractual development rights for carbon offset credits.

[0055] According to one exemplary embodiment, the method includes registering on a processing server a plurality of market participants participating in one or more sales, purchases, or third party activities in the development of carbon offset credits of one or more land parcels having contractual development rights for carbon offset credits hosted by the processing server, and authorizing, by the processing server, one or more of the plurality of market participants to access data on a bilateral transaction portal relating to the sales, purchases, or third party activities in the development of the one or more land parcels having contractual development rights for carbon offset credits. Additionally, the authorizing access to the bilateral transaction portal may further include authorizing, by the processing server, one or more of the market participants to access the bilateral transaction portal via a digital identity system including a combination of a QR code on a sign-in page of the bilateral transaction portal and biometric authentication of the QR on a smartphone.

[0056] 6 illustrates a representative computer system 600 in which embodiments of the present disclosure, or portions thereof, may be implemented as computer readable code executed on hardware. For example, the methods and systems for bilateral trading of greenhouse gas and environmental rights disclosed herein may be implemented in whole or in part by computer system 600 using hardware, software executed on hardware, firmware, non-transitory computer readable media having instructions stored thereon, or a combination thereof, and may be implemented in one or more computer systems or other processing systems. The hardware, software executed on hardware, or any combination thereof, may embody modules and components used to implement the methods and steps of the methods and systems described herein.

[0057] Where programmable logic is used, such logic may be executed on commercially available processing platforms that are configured by executable software code to become special purpose computers or dedicated devices (e.g., programmable logic arrays, application specific integrated circuits, etc.).Those skilled in the art will appreciate that embodiments of the subject matter of this disclosure may be implemented in a variety of computer system configurations, including multi-core multiprocessor systems, minicomputers, mainframe computers, computers with distributed linked or clustered functionality, and pervasive or miniature computers that may be embedded in virtually any device.

[0058] A processor unit or device as described herein may be a single processor, multiple processors, or a combination thereof. A processor device may have one or multiple processor “cores.” The terms “computer program medium,” “non-transitory computer-readable medium,” and “computer usable medium” generally refer to tangible media, such as removable storage unit 618, removable storage unit 622, and a hard disk installed in hard disk drive 612.

[0059] Various embodiments of the present disclosure are described with respect to this representative computer system 600. After reading this description, it will become apparent to one of ordinary skill in the art how to implement the present disclosure using other computer systems and / or computer architectures. Although operations may be described as sequential processes, some of the operations may in fact be performed in parallel, simultaneously, and / or in a distributed environment, with program code stored locally or remotely for access by a single or multi-processor machine. Furthermore, in some embodiments, the order of operations may be rearranged without departing from the spirit of the subject matter of the present disclosure.

[0060] The processor device 604 may be a processor device that is specifically configured to perform the functions described herein. The processor device 604 may be connected to a communication infrastructure 606, such as a bus, a message queue, a network, a multi-core multi-message passing scheme, or the like. The network may be any network suitable for performing the functions disclosed herein, and may include a local area network ("LAN"), a wide area network ("WAN"), a wireless network (e.g., "Wi-Fi"), a mobile communication network, a satellite network, the Internet, fiber optics, coaxial cable, infrared, radio frequency ("RF"), or any combination thereof. Other suitable network types and configurations will be apparent to those skilled in the art. The computer system 600 may include a main memory 608 (e.g., random access memory, read-only memory, etc.) and may also include a secondary memory 610. The secondary memory 610 may include a hard disk drive 612 and a removable storage drive 614, such as a floppy disk drive, a magnetic tape drive, an optical disk drive, a flash memory, or the like.

[0061] The removable storage drive 614 can read from and / or write to the removable storage unit 618 in a known manner. The removable storage unit 618 can include a removable storage medium that can be read from and written to by the removable storage drive 614. For example, if the removable storage drive 614 is a floppy disk or a universal serial bus port, the removable storage unit 618 can be a floppy disk or a portable flash drive, respectively. In one embodiment, the removable storage unit 618 can be a non-transitory computer readable recording medium.

[0062] In some embodiments, secondary memory 610 may include alternative means, removable storage units 622, and interfaces 620 that allow computer programs or other instructions to be loaded into, for example, computer system 600. Examples of such means may include program cartridges and cartridge interfaces (e.g., such as those found in video game systems), removable memory chips (e.g., EEPROM, PROM, etc.) and associated sockets, as well as other removable storage units 622 and interfaces 620 that will be apparent to those skilled in the art.

[0063] Data stored in computer system 600 (e.g., main memory 608 and / or secondary memory 610) may be stored on any type of suitable computer-readable medium, such as optical storage (e.g., compact disc, digital versatile disc, Blu-ray disc, etc.) or magnetic storage (e.g., hard disk drive). The data may be organized in any type of suitable database configuration, such as a relational database, a Structured Query Language (SQL) database, a distributed database, an object database, etc. Suitable configurations and storage types will be understood by those of skill in the art.

[0064] Computer system 600 may also include a communications interface 624. Communications interface 624 may be configured to allow software and data to be transferred between computer system 600 and external devices. Exemplary communications interface 624 may include a modem, a network interface (e.g., an Ethernet card), a communications port, a PCMCIA slot and card, and the like. The software and data transferred through communications interface 624 may be in the form of signals, which may be electronic, electromagnetic, optical, or other signals as would be apparent to one of ordinary skill in the art. The signals may travel over communications path 626, which may be configured to carry signals and may be implemented using wire, cable, fiber optics, a telephone line, a cellular phone link, a radio frequency link, and the like.

[0065] The computer system 600 may further include a display interface 602. The display interface 602 may be configured to allow data to be transferred between the computer system 600 and an external display 630. Exemplary display interfaces 602 may include a high-definition multimedia interface (HDMI), a digital visual interface (DVI), a video graphics array (VGA), and the like. The display 630 may be any suitable type of display for displaying data transmitted through the display interface 602 of the computer system 600, including a cathode ray tube (CRT) display, a liquid crystal display (LCD), a light emitting diode (LED) display, a capacitive touch display, a thin film transistor (TFT) display, and the like. The computer program medium and computer usable medium may refer to memory, such as the primary memory 608 and the secondary memory 610, which may be memory semiconductors (e.g., DRAM, etc.). These computer program products may be means for providing software to the computer system 600. Computer programs (e.g., computer control logic) may be stored in the primary memory 608 and / or the secondary memory 610. Computer programs may also be received via the communication interface 624. Such computer programs, when executed, may cause the computer system 600 to perform the methods as described herein. In particular, the computer programs, when executed, may cause the processor device 604 to perform the methods illustrated in Figures 1-5 as described herein. Such computer programs may therefore represent a controller of the computer system 600. If the present disclosure is implemented by means of software executed on hardware, the software may be stored in a computer program product and loaded into the computer system 600 by means of the removable storage drive 614, the interface 620, and the hard disk drive 612, or the communication interface 624.

[0066] The processor device 604 may include one or more modules or engines configured to perform the functions of the computer system 600. Each of the modules or engines may be implemented using hardware, and in some cases may utilize software executed on the hardware, such as corresponding to the program code and / or programs stored in the main memory 608 or the secondary memory 610. In such a case, the program code may be compiled by the processor device 604 (e.g., by a compilation module or engine) before execution by the hardware of the computer system 600. For example, the program code may be source code written in a programming language that is translated into any lower level language, such as assembly language or machine language, for execution by the processor device 604 and / or any additional hardware components of the computer system 600. The process of compilation may include the use of lexical analysis, preprocessing, syntax analysis, semantic analysis, syntax-driven translation, code generation, code optimization, and any other techniques that may be suitable for translating the program code into a lower level language suitable for controlling the computer system 600 to perform the functions disclosed herein. Those skilled in the art will appreciate that such processes result in computing system 600 being a specially configured computing system 600 that is uniquely programmed to perform the functions described above.

[0067] Among other features, technology consistent with the present disclosure provides methods and systems for bilateral trading of greenhouse gases and environmental rights. While various exemplary embodiments of the systems and methods of the present disclosure have been described above, it should be understood that they have been presented for purposes of illustration only and not limitation. It is not intended to be exhaustive or to limit the disclosure to the precise form disclosed. Modifications and variations are possible in light of the above teachings or may be acquired from practicing the present disclosure without departing from the breadth or scope.

Claims

1. 1. A computer-implemented method for bilateral trading of greenhouse gases and environmental rights, comprising: hosting on a processing server a list of one or more land parcels having contractual development rights for carbon offset credits; receiving, by the processing server, metrics for the one or more parcels of land having contractual development rights for the carbon offset credits; verifying, on the processing server, that the one or more parcels of land having contractual development rights for the carbon offset credits satisfy one or more conditions for development and potential entitlement of carbon offset credits based at least on the received metrics; 4. A computer-implemented method comprising:

2. 2. The computer-implemented method of claim 1, documenting, on said processing server, public disclosure information for said one or more land parcels having contractual development rights for said carbon offset credits; documenting, on the processing server, one or more of permits, contracts, registrations, zoning, and ownership of the one or more parcels of land having contractual development rights for the carbon offset credits; The computer-implemented method further comprising:

3. 2. The computer-implemented method of claim 1, receiving, by the processing server, the metrics for the one or more parcels of land having contractual development rights for the carbon offset credits from an imaging system that receives imagery from one or more of an optical sensor, a satellite, an aircraft, a drone, and a weather balloon. The computer-implemented method further comprising:

4. 2. The computer-implemented method of claim 1, receiving, by the processing server, from smart sensing technology, the metrics for the one or more parcels of land having contractual development rights for the carbon offset credits, the metrics received from the smart sensing technology including one or more of regional precipitation, regional temperature, and changes in land use or transformation. The computer-implemented method further comprising:

5. 2. The computer-implemented method of claim 1, recording the metrics for the one or more parcels of land having contractual development rights for the carbon offset credits on a blockchain associated with the processing server. The computer-implemented method further comprising:

6. 3. The computer-implemented method of claim 2, further comprising: recording on a blockchain associated with the processing server publicly available information regarding the one or more parcels of land having contractual development rights for the carbon offset credits, and one or more of permits, contracts, registrations, zoning, and ownership of the one or more parcels of land having contractual development rights for the carbon offset credits. The computer-implemented method further comprising:

7. 2. The computer-implemented method of claim 1, providing, on the processing server, a status of the one or more parcels of land having contractual development rights for the carbon offset credits, the status including ownership of the one or more parcels of land having contractual development rights for the carbon offset credits, ownership of the contractual development rights for the carbon offset credits for the one or more parcels of land having contractual development rights for the carbon offset credits, and a status of the contractual development rights for the carbon offset credits for the one or more parcels of land having contractual development rights for the carbon offset credits. The computer-implemented method further comprising:

8. 2. The computer-implemented method of claim 1, registering on a processing server a plurality of market participants that will participate in one or more sales, purchases, or third party activities in the development of carbon offset credits for the one or more parcels of land that have contractual development rights for the carbon offset credits hosted by the processing server; permitting, by the processing server, one or more of the plurality of market participants to access data on a bilateral transaction portal regarding the sale, the purchase, or the third party activity in the development of the one or more parcels of land having contractual development rights for the carbon offset credits; The computer-implemented method further comprising:

9. 9. The computer-implemented method of claim 8, wherein the step of permitting access to the bilateral trading portal comprises: allowing, by the processing server, access to the bilateral trading portal by the one or more market participants via a digital identity system including a combination of a QR code on a sign-in page of the bilateral trading portal and biometric authentication of the QR code on a smartphone. The computer-implemented method further comprising:

10. A system for bilateral trading of greenhouse gases and environmental rights, a processing server, hosting a list of one or more parcels of land having contractual development rights for carbon offset credits; receiving metrics for the one or more parcels of land having contractual development rights for the carbon offset credits; and Verify, based at least on the received metrics, that the one or more parcels of land having contractual development rights for the carbon offset credits meet one or more conditions of development and potential entitlement for the carbon offset credits. The system comprises a processing server configured to:

11. 11. The system of claim 10, wherein the processing server further comprises: documenting public disclosure information for said one or more parcels of land having contractual development rights for said carbon offset credits; and Documenting one or more of the permits, contracts, registrations, zoning, and ownership of said one or more parcels of land having contractual development rights for said carbon offset credits. The system is configured as follows.

12. 11. The system of claim 10, wherein the processing server further comprises: A system configured to receive the metrics for the one or more land parcels having contractual development rights for the carbon offset credits from an imaging system that receives imagery from one or more of an optical sensor, a satellite, an aircraft, a drone, and a weather balloon.

13. 11. The system of claim 10, wherein the processing server further comprises: A system configured to receive from smart sensing technology the metrics for the one or more land parcels having contractual development rights for the carbon offset credits, the metrics received from the smart sensing technology including one or more of regional precipitation, regional temperature, and changes in land use or transformation.

14. 11. The system of claim 10, wherein the processing server further comprises: The system is configured to record the metrics for the one or more land parcels having contractual development rights for the carbon offset credits on a blockchain associated with the processing server.

15. 12. The system of claim 11, wherein the processing server further comprises:

1. A system configured to record on a blockchain publicly available information regarding the one or more land parcels having contractual development rights for the carbon offset credits, and one or more of the permits, contracts, registrations, zoning, and ownership of the one or more land parcels having contractual development rights for the carbon offset credits.

16. 11. The system of claim 10, wherein the processing server further comprises: a system configured to provide a status of the one or more land parcels having contractual development rights for the carbon offset credits, the status including ownership of the one or more land parcels having contractual development rights for the carbon offset credits, ownership of the contractual development rights for the carbon offset credits for the one or more land parcels having contractual development rights for the carbon offset credits, and a status of the contractual development rights for the carbon offset credits for the one or more land parcels having contractual development rights for the carbon offset credits.

17. 11. The system of claim 10, wherein the processing server further comprises: registering a plurality of market participants to participate in one or more sales, purchases, or third party activities in the development of carbon offset credits for the one or more parcels of land having contractual development rights for the carbon offset credits hosted by the processing server; and permitting one or more of said plurality of market participants to access data on a bilateral transaction portal regarding said sales, purchases, or said third party activities in said development of said one or more parcels of land having contractual development rights for said carbon offset credits; The system is configured as follows.

18. 20. The system of claim 17, wherein the processing server further comprises: permitting access to the bilateral trading portal by the one or more market participants via a digital identity system including a combination of a QR code on a sign-in page of the bilateral trading portal and biometric authentication of the QR code on a smartphone. and configured to permit access to the bilateral trading portal by

19. 1. A non-transitory computer readable medium storing computer readable program code that, when executed by a processor, causes the processor to provide an exchange for bilateral trading of greenhouse gas and environmental rights, the program code comprising: an order to host a list of one or more parcels of land having contractual development rights for carbon offset credits; instructions to receive metrics for the one or more parcels of land having contractual development rights for the carbon offset credits; an order verifying, based at least on the received metrics, that said one or more parcels of land having contractual development rights for said carbon offset credits meet one or more conditions for development and potential entitlement of carbon offset credits; A non-transitory computer readable medium comprising:

20. 20. The non-transitory computer readable medium of claim 19, documenting public disclosure information for said one or more parcels of land having contractual development rights for said carbon offset credits; documenting one or more of the permits, contracts, registrations, zoning, and ownership of said one or more parcels of land having contractual development rights for said carbon offset credits; and receiving the metrics for the one or more parcels of land having contractual development rights for the carbon offset credits from an imaging system that receives imagery from one or more of an optical sensor, a satellite, an aircraft, a drone, and a weather balloon; A non-transitory computer readable medium further comprising:

Images