Blockchain Platform for Voluntary Carbon Emission Charge Calculation
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Solution Overview
Problem
Existing carbon cashback systems face challenges such as high production costs for companies producing low-carbon products, limited consumer participation due to restricted incentives, and inefficiencies in translating energy savings into carbon emission reductions, leading to inadequate public participation in climate change mitigation efforts.
Innovation Solution
A blockchain-based platform and method for calculating and managing carbon emission charges, allowing consumers to voluntarily pay and invest in climate-related financial products, providing transparent and secure carbon emission calculations and incentives through a financial intermediation service.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Object-affected harmful factors
If companies produce energy-efficient, low-carbon emissions products to reduce carbon emissions, then carbon emissions are reduced, but companies bear extra production costs and additional carbon cashback point costs
Solution Approach 1:
The patent introduces a carbon cashback point system as an intermediary mechanism between consumers and companies. The system issues carbon points to consumers for purchasing low-carbon products, which can be redeemed for cash equivalents. This intermediary incentive structure offsets the additional production costs companies incur, making it economically viable for companies to produce and promote energy-efficient, low-carbon products without directly bearing the full financial burden.
Solution Approach 2:
The system implements a feedback loop where consumer purchasing behavior is monitored, carbon points are awarded based on the carbon reduction impact, and these points are redeemable for cash equivalents. This feedback mechanism creates a continuous incentive for both companies to produce low-carbon products and consumers to purchase them, thereby sustaining reduced carbon emissions while distributing the economic benefits across the supply chain.
2Device complexity
If carbon points are accumulated and used only within existing carbon point card service providers, then the system is simple to manage, but the scope of participating products and shops is limited
Solution Approach 1:
The patent creates a universal carbon point system where carbon points issued by any participating company or service provider can be redeemed across the entire network of participating entities. The system uses a standardized point structure and redemption mechanism that works across multiple companies, products, and service providers, enabling consumers to accumulate points from various sources and redeem them at any participating location, thereby significantly expanding participation scope while maintaining manageable complexity through standardization.
3Ease of operation
If carbon point system is limited to houses and commercial buildings with electricity, gas, and water consumption, then billing data is easily accessible, but wide and diverse consumer participation is difficult to achieve
Solution Approach 1:
The patent segments the carbon point system into multiple data sources and participation channels beyond traditional utility billing. It includes mobile application-based tracking of various consumption activities, integration with multiple payment systems, and diverse participation programs that cater to different consumer behaviors and sectors. This segmentation allows the system to capture carbon reduction data from diverse consumer activities while maintaining ease of operation through specialized interfaces for each segment.
4Adaptability or versatility
If carbon point compensation is provided in the form of apartment maintenance fees, transportation cards, parking tickets, garbage bags, and culture gift vouchers, then incentives are diverse, but the system lacks practical efficiency and nation-wide applicability
Solution Approach 1:
The patent extracts the core incentive mechanism from the complex array of specific compensation forms (apartment maintenance fees, transportation cards, etc.) and replaces it with a universal cash-equivalent carbon point system. Carbon points can be redeemed for cash equivalents or transferred to family members, providing simple, flexible, and universally applicable incentives. This extraction of the essential incentive function while removing the complexity of multiple specific compensation forms significantly improves system efficiency and nation-wide applicability while maintaining incentive diversity through flexible redemption options.
Data Source
AI summary
The present disclosure relates to a blockchain based platform and a method for consumers to invest in climate related financial products at an amount voluntarily chosen based on a calculation of carbon emission amount from the transactions data crawled from the servers of financial institutions that operates credit and cash cards and to return the principal investment and dividends accrued from the climate related investments options to the consumers who paid the voluntarily chosen amount of carbon emission charges of their consumption of goods and services.The platform embodied in the present disclosure provides an incentive for consumers to voluntarily pay their carbon emission charges by financially intermediating voluntary carbon emission payment into climate related investment options and a blockchain based security of transactions for the return of the principal investments and dividends accrued from the climate related financial products to those consumers who voluntarily paid carbon emission charges.