The Implication of Blockchain Technology in the Emission Trading Scheme of Gujarat
Creators: name: Katira, Shiv
Publisher: name: Zenodo
Year: 2022
Subjects: Blockchain
Carbon Trading
Emission Trading
Gujarat
Surat
India

description: In June 2019, the pilot emission trading program was launched in Surat, followed by Ahmedabad in May 2021 and Ludhiana in June 2021. Contrary to the cap-and-trade schemes all around the world, these programs aim to cut Suspended Particulate Matters (SPM)- one of the causes of heart disease, stroke, diabetes, etc. The “Cap-and-Trade Scheme”- the government imposes limits on particle emissions and allows industries to buy and sell permits to stay below the threshold (McIntyre, 2019; Raghavan, 2019; Singh, 2019; Tripathi, 2019)- is flexible and reduces emissions by 24% compared to other plants under the “control-and-control” rule- which has led to high levels of disobedience and a lack of quality information. After the release of Nakamoto (2008), several authors proposed ideas on the application of block-chain in different areas including climate change. This dissertation explores the implications of blockchain technology in Surat’s program. The research questions are as follows: • What are the challenges the current scheme has? • How the blockchain technology can help in overcoming those challenges? • Which blockchain model is the best fitted to the current scheme? In this dissertation, Surat’s scheme is studied for two reasons: (i) Surat’s scheme is the first scheme in India and Ahmedabad’s scheme and Ludhiana’s scheme are just replication; (ii) In comparison to the other jurisdiction’s scheme, more information and data are available for Surat’s scheme. In addition to this, the focus is more on the policy aspect of the solution provided and the technological aspect will remain out of the scope. In this dissertation, “Emission Trading Scheme”, “ETS”, “Scheme”, “System” and “Model” are words used interchangeably. Likewise the words “Permit”, “Licence” and “Allowance” would be used interchangeably. In the next section, previous similar works are explored; in the third section, an analysis of the current scheme is done and challenges in the current model are identified; how the blockchain technology can be useful in emission trading schemes is discussed in the fourth section; in the fifth section a new blockchain-enabled model for Surat’s emission trading is proposed and the conclusion is given in the last section.
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