Abstract:
A stewardship system integrates the management of ozone depleting substances and halogenated substances, such as chlorofluorocarbons (CFC), across multiple players in the supply chain, carbon credit generation, sale of carbon credits within the various carbon credit markets, and improves distribution of the profits to the contributing entities. A central processing entity mediates transactions between the different entities.

Description:
RELATED APPLICATIONS 
       [0001]    This patent application claims the benefit of priority to U.S. Provisional Patent Application Ser. No. 61/752,636, entitled “Stewardship Method for Managing Ozone-Depleting Substances” filed on Jan. 15, 2013, the entire contents of which are hereby incorporated by reference. 
     
    
     FIELD OF THE INVENTION 
       [0002]    This application relates in general to methods and systems for managing carbon credits by providing an interface between customers using ozone-depleting substances, including CFCs, and other fluorinated refrigerants, companies that offer services and technology to track and destroy such substances, and the ability to derive value from the destruction in the form of tradable carbon credits. 
       BACKGROUND 
       [0003]    Carbon credits have come into use as financial derivatives to encourage the reduction of emissions of greenhouse gases such as carbon dioxide (CO 2 ) into the atmosphere. Property owners who can show verifiable reduction in CO 2  emissions or other GHG emissions (CO 2 e), or who show verifiable destruction of ozone-depleting substances (ODS) can qualify for carbon credits. Markets have formed to trade such emissions reductions as commodities among buyers and sellers. 
         [0004]    One of the goals of the carbon trading market goal is to allow market mechanisms to set a fair price on carbon, thus driving industrial and commercial processes in the direction of low emissions or less carbon-intensive approaches. While there are companies that sell assist other customers in lowering their carbon footprints, a system is needed that integrates the various parties in the use of refrigerants, the creation of carbon credits from the destruction of eligible refrigerants, and trading in which credits can be sold and traced across the market from the source to the customer. 
       SUMMARY 
       [0005]    The various embodiments provide a method for managing destruction of ozone-depleting or halogenated substances (ODS), including: providing the ozone-depleting or halogenated substance from a plurality of customers to a destruction process, in which the destruction of the substance creates carbon credits; selling at least a first portion of the carbon credits on a carbon credit market; receiving proceeds from the sale of the carbon credits; and sharing the proceeds from the sale of the carbon credits with at least one participant in the destruction process, where the value of carbon credits per unit of the ozone-depleting or halogenated substance destroyed from different customers of the plurality of customers have different values per unit of the substance destroyed. 
         [0006]    In an embodiment, the ozone-depleting or halogenated substance is a man-made halogenated ozone-depleting substance (ODS). In an embodiment, the ozone-depleting or halogenated substance is a chlorofluorocarbon (CFC), hydro chlorofluorocarbon (CHIC), or hydro fluorocarbon (HUFF). Another embodiment includes verifying a result from destruction of the ozone-depleting or halogenated substance. Another embodiment includes verifying the process for destruction of the ozone-depleting or halogenated substance for compliance with standards maintained by the carbon credit market. In another embodiment, the at least one customer is a developing country, and at least one purchaser of the carbon credits on the carbon credit market is a developed country. 
     
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
         [0007]    The accompanying drawings, which are incorporated herein and constitute part of this specification, illustrate exemplary aspects of the invention. Together with the general description given above and the detailed description given below, the drawings serve to explain features of the invention. 
           [0008]      FIG. 1  illustrates a schematic diagram of an ODS management system according to an embodiment. 
           [0009]      FIG. 2  illustrates a schematic diagram of an ODS management system according to an embodiment. 
           [0010]      FIG. 3  is a schematic diagram of a global ODS management system according to an embodiment. 
           [0011]      FIG. 4  is a process flow diagram illustrating an ODS management method according to an embodiment. 
           [0012]      FIG. 5  is a component block diagram of a laptop computer suitable for implementing the various embodiment methods. 
           [0013]      FIG. 6  is a component block diagram of a server suitable for implementing the various embodiment methods. 
       
    
    
     DETAILED DESCRIPTION 
       [0014]    The various embodiments will be described in detail with reference to the accompanying drawings. Wherever possible, the same reference numbers will be used throughout the drawings to refer to the same or like parts. References made to particular examples and implementations are for illustrative purposes and are not intended to limit the scope of the invention or the claims. 
         [0015]    As used herein, “ODS” refers to ozone depleting substances, such as chlorofluorocarbons (CFCs) and other halogenated man-made chemicals. While the various embodiments herein reference CFC management, such reference merely serves as an example and not to limit the applicability of the methods and systems to other halogenated man-made chemicals. 
         [0016]    As used herein, “green house gas” or “GHG” refers to a gas in the atmosphere that absorbs and emits radiation within the thermal infrared range, thereby contributing to the greenhouse effect. 
         [0017]    Environmental markets have developed worldwide, addressing needs of voluntary and regulation-mandated companies for GHG emissions reduction. 
         [0018]    Offsets programs exist that ensure the environmental integrity of GHG emissions reduction projects and to create value in the carbon market in the form of offset credits. For example, the Climate Action Reserve (“Reserve”) provides protocols for project development and the quantification of carbon offset credits. GHG reduction projects are verified by an independent third party as adhering to criteria established in the protocols approved by the Reserve. 
         [0019]    In particular, one project type is ODS destruction, wherein the collection, purification, analysis, and destruction of eligible ODS can be quantified and verified against the protocol leading to high quality emission reductions. 
         [0020]    In the various embodiments, a system is created that efficiently manages ODS in order to create value, for example in the form of trade carbon credits. In the various embodiments, the system is maintained by a Central Processing Entity. The Central Processing Entity, which may be one or multiple servers, may be configured with connections to the Internet and to other communication networks to enable computer-to-computer communications, computer displays coupled to the servers to support a human operator, and/or telephones sufficient to enable one or more individuals to effect the coordination of the various steps in ODS management. 
         [0021]    In a preferred embodiment, the Central Processing Entity may be in communication with supply chain partners, U.S. customers, and foreign customers, and may receive and share information from each of these entities. 
         [0022]      FIG. 1  illustrates the components of a CFC management system  100 , according to a preferred embodiment. A Central Processing Entity  12  operates a central command server  14  for the CFC management system. The Central Processing Entity directly transacts with a Customer  16 , an ODS Destruction Entity  18 , and the Carbon Credit Market  20 . The Central Processing Entity  12  and the ODS Destruction Entity  18  may be separate companies or entities, or optionally may be part of the same entity  22   
         [0023]    The process steps involved in the CFC management system  10  are also shown in  FIG. 1 , according to one embodiment. In step ( 1 ), the Customer  16  may provide the Central Processing Entity  12  with the ODS (e.g., CFCs) it owns or uses. The Customer  16  can provide ODS directly to the ODS Destruction Entity  18  and provide information regarding the ODS to the Central Processing Entity  12 . Alternatively, the Customer  16  may provide the ODS and information regarding the ODS to the Central Processing Entity  12 . This step may be taken, for example, pursuant to an outputs contract between the Customer  16  and the Central Processing Entity  12 . In step ( 2 ), the Central Processing Entity  12  may provide the ODS Destruction Entity  18  with all of its acquired CFCs and payment to process and destroy the CFCs. In step ( 3 ), the Central Processing Entity  12  may provide generated carbon credits from CFC destruction by the ODS Destruction Entity  18  to the Carbon Credit Market  20 . In step ( 4 ), the Central Processing Entity  12  may receive payment for the sale of carbon credits in the Carbon Credit Market  20 . In step ( 5 ) the ODS Destruction Entity  18  may receive a percentage of the revenue from the sale of carbon credits from the Central Processing Entity  12 , or the Central Processing Entity  12  may pay a fixed fee to the ODS Destruction Entity  18  for CFC destruction. In step ( 6 ), the Customer  16  may also receive a percentage of the revenue from the sale of carbon credits from the Central Processing Entity  12 . In step ( 7 ), the Central Processing Entity  12 , by the central command server  14 , may compute the environmental impact metrics on the pounds of CFCs that are no longer used by the Customer  16  by virtue of the completed transaction, and the central command server  14  may provide this information to the Customer  16 . 
         [0024]      FIG. 2  illustrates the components of a CFC management system  200  according to an alternative embodiment. As in the system described above with reference to  FIG. 1 , a Central Processing Entity  12  manages ODS logistics and processing to generate carbon credits through operation of the central command server  14 . The Central Processing Entity directly transacts with the. Customer  16 , the ODS Destruction Entity  18 , and the Carbon Credit Market  20 . In step ( 1 ), the Customer  16  may provide the Central Processing Entity  12  with the CFCs it owns or uses. This step may be taken, for example, pursuant to an outputs contract between the Customer  16  and the Central Processing Entity  12 . In step ( 2 ), the Central Processing Entity  12  may provide the ODS Destruction Entity  18  with all of its acquired CFCs and payment to process and destroy the CFCs. In step ( 3 ), the Central Processing Entity may provide a first portion of the carbon credits generated from by the processing done by the ODS Destruction Entity  18  to the Carbon Credit Market  20 . In step ( 4 ), the Central Processing Entity  12  may receive payment for the first portion of the carbon credits from sale in the Carbon Credit Market  20 . In step ( 5 ), the Customer  16  may receive from the Central Processing Entity  12  the second portion of the carbon credits generated by the ODS Destruction Entity  12 . In step ( 6 ), the ODS Destruction Entity  18  may receive a percentage of the revenue from the sale of carbon credits from the Central Processing Entity  12 . Optionally, in step ( 7 ) the Customer  16  may also receive a portion of the payment from the Central Processing Entity  12  for the sale of the first portion of carbon credits. Thus, in this embodiment the Customer  16  receives at least part of its compensation in carbon credits instead of money. 
         [0025]      FIG. 3  illustrates the components of a CFC management system  30  according to an alternative embodiment that incorporates trading with developing countries for which the quantification of environmental impact is different compared to that of developed countries, as per the Montreal Protocol. 
         [0026]    Developing countries, as designed by Article 5 of the Montreal Protocol, are generally referred to herein as “Developing country ODS holders,” which this is not intended to limit the scope of the claims to any specifically implemented carbon exchange platform, or to limit the scope of the claims to any one set of criteria for developing countries. 
         [0027]    As in systems  100  and  200  described above with reference to  FIGS. 1 and 2 , a Central Processing Entity  12  manages emissions offsets to generate carbon credits through operation of the central command server  14 . In this CFC management system  30 , the Central Processing Entity  12  mediates carbon credit transactions between Developing country CFC holder  102 , Developed country (e.g., U.S.) Customer  16 , ODS Destruction Entity  18 , and Carbon Credit Market  20 . 
         [0028]    In step ( 1 ), the Developing country CFC holder  102  may provide the Central Processing Entity  12  with the CFCs it owns or uses. This step may be taken, for example, pursuant to an outputs contract between the Developing country CFC holder  102  and the Central Processing Entity  12 . In step ( 2 ), the Central Processing Entity  12  may provide the ODS Destruction Entity  18  with all of its acquired Article 5 CFC along with payment for processing and destruction. Alternatively, the Developing country CFC holder  102  may provide its acquired Article 5 CFC to the ODS Destruction Entity  18  and provide payment and information about the Article 5 CFC to the Central Processing Entity  12 . In step ( 3 ), the Central Processing Entity  12  may provide Article 5 carbon credits generated by the CFC destruction to the U.S. Customer  16 , and the U.S. Customer  16  in step ( 4 ) may provide the Central Processing Entity  12  with the CFCs it owns or uses. This step may be taken, for example, pursuant to an outputs contract between the U.S. Customer  16  and the Central Processing Entity  12 . In step ( 5 ), the Central Processing Entity may sell the U.S. carbon credits on the Carbon Credit Market  20 , receiving payment from the Carbon Credit Market  20  in return. In step ( 6 ), the ODS Destruction Entity  18  may receive a percentage of the revenue received by the Central Processing Entity  12  for selling the U.S. carbon credits in step ( 5 ). The Central Processing Entity  12  may provide the U.S. CFCs received from the U.S. Customer  16  to the ODS Destruction Entity  18  along with the Article 5 CFCs in step ( 2 ). In step ( 7 ), the Central Processing Entity  18  pays the Developing country CFC holder  102  a certain amount-per-ton for Article 5 carbon credits generated. 
         [0029]      FIG. 4  illustrates an example transaction  400  using CFC management system  300 . For the purpose of providing an example, and without any limitation to the scope of the present application, at the time of the example transaction  40  the value of Article 5 carbon credits is $4.50 per ton, and the value of U.S. carbon credits is $8.50 per ton. These numbers are not meant to reflect the actual value of carbon credits at any point in time, but merely are used to enable this example. In step ( 1 ), the Developing country ODS holder  102  transfers 100 tons of CFCs it owns or uses to the Central Processing Entity  12  or to the ODS Destruction Entity  18 . In step ( 2 ), the Central Processing Entity  12  transfers the 100 tons of Article 5 CFCs to the ODS Destruction Entity  18 , along with payment for their destruction. In turn the ODS Destruction Entity  18  destroys the 100 tons of Article 5 CFCs to generate 100 tons-equivalent of Article 5 carbon credits, and the Article 5 carbon credits are transferred back to the Central Processing Entity  12 . In step ( 3 ) the Central Processing Entity  12  transfers the 100 tons-equivalent of Article 5 carbon credits generated by the CFC destruction to a developed country Customer  16 , and in exchange the Central Processing Entity  12  receives 100 tons of U.S. CFCs. In step ( 4 ), as was done with the Article 5 CFCs in step ( 2 ), the Central Processing Entity transfers the 100 tons of U.S. CFCs to the ODS Destruction Entity  18  along with payment to destroy. In turn the ODS Destruction Entity  18  destroys the 100 tons of U.S. CFCs to generate 100 tons-equivalent of U.S. carbon credits. The U.S. carbon credits, which are worth $8.50 per ton, are transferred back to the Central Processing Entity  12 . In step ( 5 ), the U.S. carbon credits are sold on the carbon credit market for a total of $850, part of which is re-supplied to the ODS Destruction Entity  18  as the payment to destroy the U.S. CFCs in step ( 4 ). Further, from the $850 received in the sale of the 100 tons of U.S. carbon credits, in step ( 6 ) a portion is paid to the Developing country CFC holder  102  (for example, $250). Thus, the use of the CFC stewardship system is seen to benefit each of the parties that transact through the Central Processing Entity  12  in this example transaction: The Developing country CFC holder  102  is able to get rid of harmful CFCs and earn revenue from the transaction. The U.S. Customer  16  is also able to get rid of harmful CFCs and receive a payment in Article 5 carbon credits at an equivalent weight. The ODS Destruction Entity  18  provides its regular business service of CFC destruction in return for monetary payment. The Central Processing Entity keeps $600, minus what the Central Processing Entity  12  paid to the ODS Destruction Entity  18 . Optionally, the Central Processing Entity  12  may pay part of the $600 to the Developing country Customer  102 . 
         [0030]    The embodiments described above may be implemented with any of a variety of computing devices, such as a notebook computer  500  illustrated in  FIG. 5 . Such a notebook computer  500  typically includes a housing  506  that contains a processor  501  coupled to volatile memory  502  and to a large capacity nonvolatile memory, such as a disk drive  503 . The computer  500  may also include a floppy disc drive  504  and a compact disc (CD) drive  505  coupled to the processor  501 . The computer housing  506  typically also includes a touchpad  507 , keyboard  508 , and the display  509 . In alternative embodiments, the computing device may be any of a variety of mobile devices, including but not limited to a smartphone, a tablet, a personal digital assistant (PDA), etc. 
         [0031]    The embodiments described above may also be implemented with any of a variety of remote server devices, such as the server  600  illustrated in  FIG. 6 . Such a server  600  typically includes a processor  601  coupled to volatile memory  602  and a large capacity nonvolatile memory, such as a disk drive  603 . The server  600  may also include a floppy disc drive and/or a compact disc (CD) drive  606  coupled to the processor  601 . The server  600  may also include a number of connector ports  604  coupled to the processor  601  for establishing data connections with network circuits  605 . 
         [0032]    The computing device processor  501 ,  601  may be any programmable microprocessor, microcomputer or multiple processor chip or chips that can be configured by software instructions (applications) to perform a variety of functions, including the functions of the various embodiments described above. In some Central Processing Entities, multiple processors  501 ,  601  may be provided, such as one processor dedicated to wireless communication functions and one processor dedicated to running other applications. The processor may also be included as part of a communication chipset. 
         [0033]    The various embodiments may be implemented by a computer processor  501 ,  601  executing software instructions configured to implement one or more of the described methods or processes. Such software instructions may be stored in memory  505 ,  602 , in hard disc memory  503 , on tangible storage medium or on servers accessible via a network (not shown) as separate applications, or as compiled software implementing an embodiment method or process. Further, the software instructions may be stored on any form of tangible processor-readable memory, including: a random access memory  505 ,  602 , hard disc memory  503 , a floppy disk (readable in a floppy disc drive  504 ), a compact disc (readable in a CD drive  505 ), electrically erasable/programmable read only memory (EEPROM), read only memory (such as FLASH memory), and/or a memory module (not shown) plugged into a central command server  14  such as an external memory chip or USB-connectable external memory (e.g., a “flash drive”) plugged into a USB network port. For the purposes of this description, the term memory refers to all memory accessible by the processor  501 ,  601  including memory within the processor  501 ,  601  itself. 
         [0034]    The foregoing method descriptions and the process flow diagrams are provided merely as illustrative examples and are not intended to require or imply that the steps of the various embodiments must be performed in the order presented. As will be appreciated by one of skill in the art the steps in the foregoing embodiments may be performed in any order. Words such as “then,” “next,” etc. are not intended to limit the order of the steps; these words are simply used to guide the reader through the description of the methods. Although process flow diagrams may describe the steps as a sequential process, many of the steps can be performed in parallel or concurrently. 
         [0035]    Any reference to claim elements in the singular, for example, using the articles “a,” “an” or “the” is not to be construed as limiting the element to the singular. 
         [0036]    The preceding description of the disclosed embodiments is provided to enable any person skilled in the art to make or use the present invention. Various modifications to these embodiments will be readily apparent to those skilled in the art, and the generic principles defined herein may be applied to other embodiments without departing from the spirit or scope of the invention. Thus, the present invention is not intended to be limited to the embodiments shown herein but is to be accorded the widest scope consistent with the following claims and the principles and novel features disclosed herein.