Carbon AIWhat AI will bring to carbon reduction
Carbon credit MarketCarbon markets could leverage up to US$--bn per year in climate investments. Carbon market size is expanding as the spectrum of compliance—voluntary, domestic, and international—adds complexity to the markets.
Carbon prices are determined by market, based on various drivers and credit attributes. Specially Carbon credits generated via national and corporate carbon reduction and removal initiatives through ITMO mechanism are now adding new market value to achieve its NDCs and emission reduction target.
Carbon prices are determined by market, based on various drivers and credit attributes. Specially Carbon credits generated via national and corporate carbon reduction and removal initiatives through ITMO mechanism are now adding new market value to achieve its NDCs and emission reduction target.
What is ITMOArticle 6 facilitates international cooperation for enhancing Nationally Determined Contributions (NDCs) and achieving global sustainable development goals. It introduces Internationally Transferred Mitigation Outcomes (ITMOs) for exchanging emissions reductions between countries. ITMOs, unlike traditional credits, are not tied to specific projects, offering flexibility in the carbon market.
Host countries benefit from ITMO transactions by attracting investments into low-carbon projects, supporting sustainable development. Acquiring countries can enhance their NDC ambitions by financing cost-effective projects through ITMOs transactions.
To prevent double-counting, the Article 6 Rulebook establishes an accounting framework, requiring corresponding adjustments during ITMO transfers. Host countries deduct transferred emissions from their inventory, and the acquiring country applies adjustments when counting ITMOs toward its NDC. In this process, new technologies like artificial intelligence can enhance transparency and efficiency in ITMO transactions.
To prevent double-counting, the Article 6 Rulebook establishes an accounting framework, requiring corresponding adjustments during ITMO transfers. Host countries deduct transferred emissions from their inventory, and the acquiring country applies adjustments when counting ITMOs toward its NDC. In this process, new technologies like artificial intelligence can enhance transparency and efficiency in ITMO transactions.
AI can support ITMOThe current ITMO system faces challenges due to the existence of multiple reporting administrative structures. Startups and small businesses involved in climate technology development encounter obstacles such as human resource constraints and high costs.
Consequently, the time required for the actual implementation of projects is prolonged, leading to a sluggish progression of the initiatives. Addressing these issues, a novel solution leveraging generative AI could efficiently streamline administrative processes, ranging from calculating carbon reduction quantities to document creation, thereby significantly enhancing the overall efficiency of the business operations.
Consequently, the time required for the actual implementation of projects is prolonged, leading to a sluggish progression of the initiatives. Addressing these issues, a novel solution leveraging generative AI could efficiently streamline administrative processes, ranging from calculating carbon reduction quantities to document creation, thereby significantly enhancing the overall efficiency of the business operations.
Contactcommoncarbon@ourfuture.kr
Link
Project