Connecting carbon markets
through open data

CONTEXT
Report by Taskforce on Scaling Voluntary Carbon Markets (TSVCM)• Individual commitments through nationally determined

contributions (NDCs). The Paris Agreement introduced abottom-up approach for addressing climate change.

• Decentralised cooperative approaches to achieve theirNDCs. This is expected to lead to heterogeneous climate
markets, which may have differences in governance rules andoperate under different technological systems.

• Challenges

acrossstakeholders’ecosystem:

adecentralised information technology approach is a need toconnect climate markets systems.
Source: Adams, Tim. Winters, Bill. Nazareth, Annette and Mark Carney Taskforce on Scaling
Voluntary Carbon Markets Phase 1 Final Report: January 2021, TSVCM, pg. 45

TheParis Agreement underscores the importance of robust systems and processes for

tracking and reporting GHG emissions, fostering transparency, and ensuring the credibility andsecurity of data. These points highlight some of the key technical and procedural considerations
that arise when implementing the agreement's provisions.

GHG Emissions& Assets

Transparent
Processes

Connectivity

Dashboards

DataManagement

Monitor, verify, andEnsure clarity &Link diverse GHG

Display key data for

Data Management:

report emissions.

transparency with third-registries for

progress assessment andPrioritise confidentiality,

Maintain & enhance

party interactions forinternational consistency

informed decision-making

integrity, and data

mitigation efforts

accountability

and mechanisms likecarbon trading

availability to foster trustPURPOSE OF A NATIONAL CARBON REGISTRY
A national carbon registry is an essential tool in the implementation ofArticle 6 of the Paris Agreement as it ensures the integrity, transparency,and effectiveness of the international efforts in carbon reduction andfacilitates the operationalisation of market and non-market mechanisms
for climate action cooperation.

National Carbon Registry in Article 6 Implementation:

ü Tracks and records GHG emissions and reductions
ü Prevents double counting of emission reductions
ü Ensures transparency and builds international trustü Facilitates carbon trading and market mechanisms
ü Centralises data for compliance and reportingü Supports linkages between carbon mitigation and sustainable development

REGISTRY AS A MANAGEMENT SYSTEMInformation
ManagementAccountingSystem•

Maintain data for carbon unit issuance process•

Oversee issuance, transfers, & retirements of carbon units•

Ensure confidentiality, availability, & integrity•

Manage unit eligibility & usage purpose•

Allow public access for project understanding & review•

Prevent double issuanceWorld Bank’s Climate Warehouse Program - Two-Tiered Approach
Building an End-to-End Digital Ecosystem for Carbon Markets
Pillar 1: Piloting and Developing
Global Public Goods

Making digital infrastructure for carbon
markets available to client countries
through development, testing andprototyping of innovative digital
infrastructure for carbon markets.
Work Streams:• Digital for Climate (D4C) Working Group.
Collaboration with EBRD, UNDP, UNFCCC, and WB for a
modular and interoperable end-to-end digital
ecosystem for carbon markets.
• Digital Measurement, Reporting and Verification(dMRV) systems. Piloting the connection between dMRV
systems with national carbon registries.
• National Carbon Registries. Development of opensource
off- and on-chain national registries.
• Tokenization instruments. Development of tokenization
instruments with the aim enable efficient transactions.
• Climate Action Data Trust (CADT). Aggregation andharmonization of carbon credits data.

Pillar 2: Global Knowledge andCapacity-Building

Support countries and jurisdictions toin implementation of digital infrastructure
for carbon markets needed for GHG
mitigation and NDC implementation.
Work Streams:• Develop knowledge base on digital infrastructure andfacilitate information exchange through technicaldiscussions and knowledge dissemination• Assist countries to identify and implement best practice
approaches and, where relevant, achieve compatibility indesign to support the development and linking of digital
infrastructure for carbon markets• Encourage international and national cooperation,and inform the domestic and global policy discussions onGHG mitigation by sharing lessons learned and providing aplatform for collective innovation on digital
infrastructure products

World Bank’s opensource national registry automatically synced toClimate Action Data Trust
Objectives•••

Tracking and reporting of carbon projects and emission reductions units for Article 6requirement.
Issuance and transaction of carbon credits
Building capacity-building and experiential learning

Phases••••Phase 1 - Testing: Test Module 1 (Register) and Module 2 (Transaction Layer) of the Core Registry.
Phase 2 - Feedback Assessment: Collect feedback to cover specific needs of the country registry.
Phase 3 - Customization: Define and assess customization based on needs
Phase 4 - Deployment: Once deployment is decided, the existing software can be deployed andused.

Region:GlobalProject Scope:
PMI
Objective:
Develop National
Carbon Registry
Software:Opensource••

Lessons Learned: Testing sessions help define further technical and functional needs of theregistry to ensure its adoption. Moreover, expertise both on carbon markets and IT is aprerequisite to ensure an effective training phase. In parallel, it is crucial to define the policy
and institutional arrangements to determine the process flows and the management roles of theregistry.
Next steps: Discussions related to the custodial approach of the registry based on country
specific needs and priorities. Additionally, feedback is systematically collected to prepare theof Customization and Deployment.

Current phase:TestingClimate Action Data Trust Testing Phase Outcomes
Participation in CAD Trust Simulation III (2022)

Testing activities

Platform & Governance•Developed operational prototype as a global

75

individual testers

40

weekly office sessions

11

governments30participatingorganisations

58

testing sessions

30

kick-off and onboarding meetings

public good that aims to empower a new global
carbon market infrastructure through aObserver Node
Auxiliary App

decentralized information technology platform
built on blockchain technology•

Implemented the recommendations from thegovernance consultations on the operational

platform conducted by IETA and the Governmentof Singapore:•Conducted fundraising•

Formation of governing bodies•

Set up independent legal entity anchored inSingapore•

Official launch in December 6-8, 2022

22 full participants

8 observers:

ChileSpain514 individual points of feedback which helpedJapan

identify

Peru

156

development actions, 139 of whichandRwanda

reflected in the final version of the operational

Senegalprototype at the end of the simulation.

Singapore

wereimplemented

duringSimulation

III

SwedenKey lessons learned and a complete log of all

Switzerland

participant feedback shared with the governing body

UKof the operational CAD Trust at the end of Simulation
III in August 2022 (Climate Warehouse Simulation III– Final Report)

UgandaACR
CAR
GCC
Gold Standard
VerraIFCWB CATSWB CMI
EcoRegistry
Colombia
IHS MarkitSK Certification
CenterGenZero

EBRDUNDPUNFCCCClimate Ledger
Initiative
ClimateCheck
IETA
Open EarthFoundation

Climate Action Data Trust (CAD Trust) is a decentralised
metadata platform that links, aggregates and harmonises
all major carbon registry data to enhance transparent
accounting in line with Article 6 of the Paris Agreement.
The CAD Trust open-source metadata system uses blockchain technology tocreate a decentralised record of carbon market activity with the aim to avoid
double counting, increase trust in carbon credit data and build confidence incarbon markets.

Climate Warehouse End-to-End Digital Ecosystem for Carbon Markets
Digitalisation of Methodologies: smart contract toward the digitisation of themitigation activity cycle

Digital Methodology

Physical Layer(MRV)

Program Level MRV
Equipment

Database Layer(MRV)

Metadata Layer

Registry Layer

Centralised

Independent Standards

Country registries

UNFCCC registries

WB registries

ServiceLayer

Compliancereporting

Database/Sensors

optionally toMeters

National MRV

Satellite

SystemBenchmarking

Due diligence

Transaction Layer

Ratings

Tokenisation
EngineForecasting

Digital Carbon Assets

Facility Level MRV

Exchange A
Exchange B
Exchange X

Verificationof units
Digital work-flow
Project preparation from document development, approval, validation to registration in applicablestandards

Account HolderWallets

DigitalAssetStatus
Tracking

Digital Carbon Assets

Reporting for markets,
UNFCCC

Entity Due
Diligence
JurisdictionalRegulation

Current Challenges· Fragmentation across standards· Lack of centralised registries between voluntaryand compliance markets· No joint reference data
· Lack of pricing transparency· Limited visibility of project lifecycle· Unclear link of credits to the NDCs

Key Value Propositions
COMMON DATA MODEL
Enable reconciliation of data fromregistries and facilitate peer-to-peer
connection among registries throughblockchain technology.

TRANSPARENCY
Enhance transparency and trust amongmarket participants and enable
tracking of carbon credits and reduce
the risk of double-counting.

CORRESPONDING ADJUSTMENTS
Provide visibility into corresponding
adjustment procedures and thelifecycle of carbon credits fromissuance to retirement, safeguarding
against double counting andsimplifying reporting requirements.

INFORMATION & STATUS

ARTICLE 6

Surface publicly available information

Help to operationalise processes

on carbon credits and record statusunder Article 6 of the Paris Agreementchanges to provide information on how

such as compliance reporting andthe credits are used.

registry data model development.

Enabling Features
Open-Source

Standard/RegistryManaged• Seamless synchronisation of registry data
• Advanced blockchain encryption for protection• Tamper-proof, read-only access for other participants• Ensures data accuracy and privacy• Does not interfere with existing Registry’s systems or processes

Distributed
LedgerGlobal Carbon Market - PositioningBenefits for Key Stakeholders

Buyers &Traders

Exchanges

RatingAgencies

ProjectDevelopers

Aggregated trustworthy

Decreases market fragmentation

Harmonised data to carry out

Display projects & units portfolio

data to search through.

and eases integration.

risk assessment and assign

across standards through a trusted

ratings.

source.

Access to comprehensive

Building trust in the accounting ofTracking the Article 6

projects and units information

MOs will enable transparency andstatus of credits (onceAdds information security to the data for sectoral assessment andauthorised by the hostneeded from registries forcountry) to enabletransactions.

Easier access to project
developer information.

Promotes standardisation and asset
integrity.

enhanced pricediscovery.

establishing benchmarks.

Ability to carry out ratings on aIncreases volume of standard asset
types.

dynamic basis.

trade, benefiting project developers.

Benefits for Key Stakeholders

Governments

UNFCCC

Increases visibility and• Aggregates reporting

credibility of a country’s• Provides unified andclimate activities.
View MOs to potentiallypurchase.

comprehensive accessprocesses by making it easier totransactions and changes toto both independent

aggregate information

dataand national registries• Help to operationalise
6 of the Parisand increases market

Agreement such as

participation of private sector.

compliance reporting
and registry data model

to identify duplicative projects.

• Access to aggregatedinformation, ability to audit

Promotes new project activity

within their jurisdiction, ability• Reduces burden on monitoring

Verification
Bodiesexternal systems for due diligenceprocesses under Article

Aggregate view of projects

IndependentStandards

development.

• Facilitates trust andtransparency betweensystems• Facilitates trust and transparency
between systems

Ensuring Environmental Integrity under Article 6
Mechanisms
Art. 6 acknowledges countries can pursue voluntary cooperation towards NDC implementation
for higher mitigation ambition and to foster sustainable development

Article 6.2 outlines cooperative approaches and transfer of Internationally Transferable Mitigation
Outcomes (ITMOs)
between different actors, countries and private sector companies, through bilateral agreements.

Paris Agreement thus has created new markets for countries to cooperate to reduce GHG emissions
employ a market-based approach, capture massive economies of scale through global action

CAD Trust acts as a common data system that serves all stakeholders and aims to provide thefoundation to build a transparent, verifiable, inclusive and cost-effective carbon market that
promotes genuine high environmental integrity.

CAD Trust : Benefits for Governments
A common data taxonomy that enables reconciliation of datafrom registries. Through blockchain technology, it facilitates a peer-to-peer
connection among decentralized registries with the aim to link, aggregate andharmonize the underlying data

Provide visibility into corresponding adjustment procedures andthe lifecycle of carbon offsets from issuances to retirement, which willsafeguard against double counting and ease reporting requirements.

Surface publicly-available information on MOs and record statuschanges to provide information on how MOs are used.

Enhance transparency and trust among market participants andenable tracking of MOs and reduce double counting risk. The CAD
Trust would not hold assets or directly facilitate.

Data Flow
• Compliancereporting• Forecasting

Registry’s Existing Database• Benchmarking

CAD Trust Node
(Independent standards, sovereign• Ratings(Hosted by Registry)• DD Checks

registries, UNFCCC registries)• ConflictResolutionChia Blockchain
NetworkRegistry Layer

Metadata Layer• Certifications

Service Layer

Modes of Integration (For Registries)

RECOMMENDED

1. Manual Upload

2. API Integration (Batch)

3. API Integration (Real Time)

Easily submit your carbon credit data

Seamlessly connect and synchronise

Integrate your systems to enable real-by uploading files directly onto theyour registry data in batch mode,time data exchange, providing instant

CAD Trust Application, ensuring data

enabling efficient data transfer andcarbon credit updates and fostering trust

accuracy and transparency for all

streamlined updates.

in market activity.

stakeholders.

PROJECT LOCATION•••••CAD Trust Project ID* (FK)
Project Location ID (PK)Country*
In Country Region
Geographic Identifier*

PROJECT RATING•••••••CAD Trust Project ID* (FK)
Project Rating ID (PK)Rating Type*
Rating Range Lowest*
Rating Range Highest*
Rating*Rating Link*

PROJECTS•••••••
••
•
••
•
•
••
•
•
•
•

CAD Trust Project ID* (PK)Current Registry*
Project ID*
Registry of Origin*
Program
Project Name*
Project Description
Project Link*
Project Developer*
Sector*Project Type*
Project Tags
Covered by NDC*
NDC Information
Project Status*
Project Status Date*
Unit Metric*
Methodology*
Validation Body
Validation Date

RELATED PROJECTS••••CAD Trust Project ID* (FK)
Related Project ID (PK)
Relationship TypeRegistryUNITS•••••••ISSUANCES•••••••CAD Trust Project ID* (FK)Issuance ID (PK)Issuance Start Date*
Issuance End Date*
Verification Approach*
Verification Report Date*
Verification Body*

•••••
•••
•
•••
•
•

CO-BENEFITS•••CAD Trust Project ID* (FK)Co-Benefit ID (PK)Co-Benefit•••••CAD Trust Project ID* (FK)
Estimations ID (PK)
Crediting Period Start*
Crediting Period End*
Unit Count*

Each ID is global unique,meaning no organisations
will generate the same ID
for any table.

••
•
••

CAD Trust Project ID* (FK)Label ID (PK)Label Type*
Label*
Crediting PeriodStart Date*
Crediting Period End Date*
Validity Start Date*
Validity End Date*
Unit Quantity*
Label Link*

GOVERNANCE(PICKLIST VALUES)•••••••••••••••••••LABELS

ESTIMATIONS•••••Issuance ID* (FK)CAD Trust Unit ID* (PK)
Unit Issuance Location*(FK to project loc ID)
Label ID* (FK)
Unit Owner
Country Jurisdictionof Owner*
In-Country Jurisdictionof Owner*
Unit Block Start*
Unit Block End*
Unit Count*
Vintage Year*
Unit Type*
Marketplace
Marketplace Link
Marketplace Identifier
Unit Tags
Unit Status*
Unit Status Reason
Unit Registry Link*
Corresponding Adjustment
Declaration*
Corresponding Adjustment
Status*Data Model

Fields with an * are required form fields
PK donates primary key for aspecific table
FK denotes foreign key which links
tables together

Registry values
Project Sector values
Project Status values
Project Type values
Methodology values
Unit Metric values
Validation Body values
Country values
Rating Type values
Unit Type Values
Unit Status values
Corresponding Adjustment
Declaration values
Corresponding Adjustment
Status values
Related Project
Relationship type values
Label Type values
Verification Body values
Tag values
Co-benefit values

Data Dashboard*Prototype / Subject to change /Contains sample data

*Prototype / Subject to change /Contains sample dataConnecting with National Registries

Three Possible Paths
COUNTRIES WITHOUT A FULLYOPERATIONAL NATIONAL CARBONREGISTRYWorldBank
supportUNDP
support

COUNTRIES WITH AN EXISTING NATIONALCARBON REGISTRYCAD Trust
supportRegistry connections

INDEPENDENT STANDARDS (1/2)
2022
Q4
Onboarding
Commenced

2023
H1
EcoRegistry
BioCarbon
GCC*

onboarded

H2
CDM Registry
Verra
WB CATS

Registry connections
INDEPENDENT STANDARDS (2/2)
2024
Q1Gold Standard
ACR
CAR
ERS
Registry Providers (Xpansiv – APX + IHS
Markit –S&P)

Q2

Q3

Puro EarthRiversePlan VivoInternationalCarbon Registry
Climafi
Asia Carbon
InstituteART TreesCity Forest Credits
Social CarbonWoodland Carbon
CodeQ4Peatland CodeUCR
OxCarbonWilder Carbon
TrustedCarbon
Others TBC

Registry Connections
NATIONAL REGISTRIES (1/2)
2022

2023

Q4

H1

Onboarding
Commenced

H2
Namibia
Pakistan
BhutanBangladesh* Discussions and follow up initiated with Thailand, Chile and Argentina

Registry Connections
NATIONAL REGISTRIES (2/2)
2024

Parallel Efforts:

Q1

Q2

Q3

Chile
Argentina

Indonesia
UAE
ThailandJapan
Switzerland

Ghana
Vanuatu

India
JordanSri Lanka

Georgia

Q4
SingaporeUK

SwedenSpain
Vietnam
Colombia
MexicoSenegalUgandaRwandaUruguayUkraine
Seychelles
RussiaPeru
MoroccoMalawi
Zimbabwe
Solomon IslandsGovernance updateCouncil
Recommendation

Recommendation

Recommendation

Board of Directors
Technical Committee

User Forum

Composed of data

Composed of market

providers and market

Mandates to implement
workplan

Operational, strategic &communications support

practitioners and users

practitioners to adviseof the data provided toon technical development

advise on additional
functionality and use

Secretariat
Operational support

Operational support

Interim Period

https://climateactiondata.org/about/The CAD Trust Council
Rui Yun Gan (Singapore)

Jessica Bede

Chris Shipley (UK)

Andrew HowardMbaye Diagne (Senegal)

Kishor Rajhansa

Sonam Tashi (Bhutan)

Hugh Salway

Juan Pedro Searle (Chile)

User Forum appointee

Kazuhisa Kaokutsu (Japan)

User Forum appointee
https://climateactiondata.org/about/

CAD Trust Timeline

1

TECHNICAL COMMITTEEESTABLISHED

3USER FORUM ESTABLISHEDFIRST MEETING OF THE COUNCIL
DEC 2022

2DATA DASHBOARD DEVELOPMENTMARCH 2023

4DATA DASHBOARD LAUNCH

7Q4 2023

MAY 2023

JAN 2023

LAUNCH OF THE INITIATIVE

5REGISTRIES ONBOARDINGONGOING

6ADOPTION BY INDEPENDENTSTANDARDS AND NATIONALREGISTRIES
Q4 2023 / 2024

W

www.climateactiondata.org

Econtact@climateactiondata.org