Emissions Unit Trading Using Location Verification and Distributed Ledgers
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Solution Overview
Problem
Existing emissions trading systems lack transparency and verification, leading to potential manipulation and fraud, and lack technology for accurate classification and audit of carbon exposure, limiting the development of efficient carbon markets.
Innovation Solution
A system and method utilizing location data from multiple devices to determine emissions output, verify emissions units, and generate emissions units for trading on a distributed ledger, incorporating device multi-factor authentication and blockchain data structures to ensure transparency and accuracy.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If emissions trading systems use traditional verification methods, then the system operation is simple, but transparency and accuracy are insufficient leading to potential manipulation and fraud
Solution Approach 1:
The patent introduces multiple intermediaries including satellite devices, drone devices, mobile devices, and blockchain technology as mediators between emissions sources and verification systems. These intermediaries capture location data from multiple angles and store it on distributed ledgers, enhancing transparency without requiring direct integration between all system components.
Solution Approach 2:
The patent replaces traditional mechanical verification systems with satellite-based GPS/GNSS location tracking and blockchain-based digital verification. This substitution uses space-based positioning technology and cryptographic ledgers to verify emissions data, significantly improving transparency and fraud resistance while reducing on-ground verification infrastructure complexity.
2Measurement precision
If multiple location data sources are used to verify emissions, then measurement precision improves, but the quantity of data and processing complexity increases
Solution Approach 1:
The patent extracts only the essential location data elements (coordinates, timestamps, device identifiers) from the raw data streams of satellites, drones, and mobile devices. By focusing on extracting specific verification-critical data points rather than processing all available data, the system achieves high measurement precision while managing data volume efficiently.
Solution Approach 2:
The patent performs preliminary filtering and validation of location data at the source devices before transmission to the blockchain. Each device pre-processes its location data to ensure format compliance and basic validity, reducing the burden on central verification systems and minimizing the volume of invalid or redundant data that needs to be processed.
3Productivity
If traditional emissions tracking methods are used, then the device complexity is low, but the ability to accurately classify and audit carbon exposure is limited
Solution Approach 1:
The patent creates a universal verification platform that handles multiple types of emissions sources (industrial facilities, transportation, agriculture) and multiple verification methods (satellite imaging, drone monitoring, mobile device GPS) through a single blockchain-based system. This multi-functional approach enables accurate classification and auditing of diverse carbon exposure types while providing a unified interface that manages complexity.
Solution Approach 2:
The patent enables emissions sources to automatically generate and submit their own location and emissions data to the blockchain verification system. Organizations use their existing GPS and operational data systems to self-report, which is then independently verified by multiple external devices. This self-service approach improves carbon market efficiency by reducing manual data collection complexity.
Data Source
AI summary
Various implementations described herein may refer to a system and method for trading emissions units using location data. In one implementation, a method may include receiving emissions attribute data from users for emissions objects, where a respective emissions object is associated with a respective emissions output. The method may also include receiving evidence data from the users for the emissions objects, where the respective device is configured to transmit the evidence data to a distributed ledger. The method may further include determining emissions output data for the emissions objects. The method may additionally include transmitting the emissions output data to the distributed ledger. The method may also include generating emissions units for the users based on the emissions output data. The method may further include providing an emissions market platform to the users for trading the emissions units.