Premise (Introducing Enrex 2.0 For Greener Crypto Future)
Make Crypto Green Again
The untapped multi-billion dollar market of mandatory CO2 allowances and renewable energy is now entering the scene of Decentralized Finance (DeFi) through Enrex: the first protocol to connect DeFi to regulated environmental markets.
Enrex.io - connecting crypto with government-mandated certificates, thus making crypto green.
- 1.CO2 allowances - carbon allowance is a term used for a certificate or permit that represents the legal right to emit one tonne of carbon dioxide or equivalent greenhouse gas. Controlled and issued by governments.
- 2.Surrender/Cancel/Use - using CO2 allowances or renewable energy certificates to cover CO2 emissions. After the use, the certificate is attached to a specific entity consumption and can't be revoked.
- 3.Offsetting CO2 allowances - meaning to cover CO2 footprint using CO2 allowances.
- 4.Offsetting - meaning to cover CO2 footprint using CO2 allowances or cancelling renewable energy certificates.
- 5.Voluntary carbon credits / CO2 credits - a generic term for any tradeable certificate or permit representing the right to emit a certain amount of carbon dioxide or the equivalent amount of different greenhouse gases. Many companies that sell carbon credits to various customers are interested in lowering their carbon footprint on a voluntary basis.
- 6.Renewable Energy Certificates (RECs) - government-mandated renewable energy certificates or credits (RECs) are also sometimes treated as a method for carbon offsetting. One REC represents a quantity of energy produced from renewable energy sources. RECs can be converted into carbon offsets by way of translating green energy into carbon reductions.
- 7.Tokenized Carbon Credits - carbon credits in a digital certificate form. Advancement of credits into a Web3 environment and blockchain exchanges.
Many organisations and businesses manage their greenhouse gas (GHG) footprint by developing strategies for emissions inventory. Different strategies produce different scopes. These scopes help distinguish emissions from directly owned sources by the business from consequential activities made by those businesses or organisations but produced by different sources. While different scopes through pinpointing sources distinguish their emission accounts, different measures by the government to reduce the GHG are applied. Thus, emerge two financial tools - carbon offsets and RECs to manage an overall carbon footprint in the economy.
The Paris Agreement has negotiated with the 196 parties within the United Nations Framework Convention on Climate Change (UNFCCC) to steer their national energy politics towards optimal reduction in overall carbon footprint. By appealing to local governmental bodies the goals were set to incline towards a more renewable energy consumption by regulating it via the more popular options of carbon offsets and renewable energy certificates (GOs for EU and RECs globally). Each nation still holds an autonomous decision making the base for picking and reaching a better solution for set goals.
If the goal is to remove CO2 emissions or provide support to emission-reducing activities, a carbon offset is a choice in question. Also, offsets lower costs of overall GHG emission mitigation. Whereas RECs mainly support renewable energy development, as well as expand the overall choice in consumer electricity sources. While REC holders claim a 1 MWh use of renewable energy from certainly 'green' sources of electricity, offset owners mainly claim a reduced amount of GHG emissions outside their organisation's operations.
Now, most of the markets inside private ventures often choose carbon offsets, but even this type of choice usually warrants a mandatory governmental overwatch in the form of carbon or CO2 allowances (CO2 allowances - a term that shall be used in this WP to define carbon allowances as a whole to avoid any confusion between the terms carbon offset and carbon allowance). In the case of the EU, the mandated form of carbon allowance or CO2 allowance is the so-called European Union Allowance (EUA). For further information, on how different markets around the globe choose what particular form of the mandated certification system, see the 'Market' section inside this white paper.
- Only government-mandated certificates can make a real impact on going CO2 neutral, and the crypto community is ready for it.
- Government-issued certificates are tracked and have strong governance and they are hard to manipulate.
- A venture into both mandatory and voluntary carbon markets displays a wider spectrum of choice.
What will happen, if the certificates rise in the regulated market?
The more the price will rise, the more renewable technologies will evolve and CO2 emissions will be reduced.
Enrex - the solution for making Bitcoin green! Participation in CO2 allowances and renewable energy certificates (RECs) market hassle-free and making cryptocurrency green with a guarantee!
- Opening environmental markets to retail
- Offsetting CO2 emissions directly by way of balancing them from one cryptocurrency for other cryptocurrencies
- Making cryptocurrencies green
- Presenting offsetting solutions for businesses and retail
- Enabling and opening environmental instruments
- Impacting other businesses to reach carbon neutrality