What is the Zero Carbon Project?
The Zero Carbon Project aims to tackle climate change using blockchain. Although renewable technologies provide a long-term solution, they are likely to remain expensive for several years, while the Zero Carbon Project’s solution; using International Carbon Credits and the Ethereum Blockchain, could help tackle the issue immediately.
The melting of permafrost caused by climate change could release 86 times the amount of carbon currently in the Earth’s atmosphere, and although renewable technologies are reducing carbon output, they are still too expensive, and time is running out.
Energy consumers believe their individual contributions are too small to make a difference, and although they are concerned about climate change, they are still using energy provided by fossil fuels as green energy is expensive.
The Zero Carbon Project aims to provide a two-part solution to this, aiming to provide cheaper carbon neutral energy than fossil fuels, to reduce global carbon emissions. It aims to offer lower prices than fossil fuels and renewables while offsetting their emissions by purchasing International Carbon Credits. In addition, it will provide consumers with crypto rewards, tokenizing future utility value and tradeable on a crypto exchange, as a catalyst for change.
Current State of the Zero Carbon Project
Up to sixteen energy suppliers will be available for consumers to choose from, offering renewable energy, as well as biofuels, waste to energy, nuclear energy and carbon neutral energy – typically fossil fuels with carbon emissions offset through the purchase of International Carbon Credits.
Consumers can then pick their preferred energy supplier on an online market, driving competition and prices. After a price is agreed, agreements and paperwork are facilitated by the market, after which the energy supplier can bill the consumer directly.
Currently, Zero Carbon Project has software ready for consumers, capable of comparing consumer contracts offered on a like-to-like basis, and has suppliers already participating. In the future, it wishes to add automatic switching to zero carbon offers, and a choice of zero carbon preferences, for example no nuclear, or renewables only.
For energy suppliers, there is an intensely competitive reverse auction. For this process, again Zero Carbon Project has software ready, and suppliers are already participating. Tender is set up one week in advance to allow suppliers to prepare, after which they can submit bids. These bids can then be revised to offer a better chance of winning the auction. In some examples already recorded by Zero Carbon Project, differences of up to £50,000 between the best and worst offers have been observed.
International Carbon Credits
One of the mechanisms underpinning this market is the purchase of International Carbon Credits. These credits contribute to carbon emission reduction projects across the world; for example, the planting of forests, or the installation of renewable energy sources. These credits were set up as part of a united nations framework ratified in the Paris Climate Agreement in 2015.
By purchasing these International Carbon Credits, energy providers using non-renewable sources such as fossil fuels can offset the carbon they produce, making them carbon neutral. By doing this, they can often offer lower prices than renewable energy, without net contributions of carbon to the atmosphere and offer lower prices to consumers as a result.
Energis Token Rewards
Zero Carbon Project facilitates the sale of this energy, and offers consumers rewards in the form of Energis tokens, as a catalyst for change, aligning individual interests with societal goals. These tokens can then be sold to energy suppliers, who need to use them to pay transaction fees to list their products on the Zero Carbon Market. Up to 70% of these fees are then recycled back into the pool used to reward consumers.
Due to a limited supply, as the consumer base grows, the value of the Energis token increases to pay higher transaction fees from a growing consumer base. Sellers assess the current value of Energis tokens by estimating the expected size of the future customer base, and the future utility value that will be provided from the market service.
Zero Carbon Project have designed a regulated market solution to work in markets where consumers are unable to switch suppliers; for example in China. Although it can’t reduce energy prices in these markets, Zero Carbon Project will provide consumers with a means to offset their energy use directly through the purchase of International Carbon Credits, while rewarding them for doing this using Energis tokens.
There are numerous ways for consumers to earn Energis tokens from Zero Carbon Project, which are listed below:
- Registration – Provides a reward of 10 Energis tokens until 2022, or until 35 TWh are consumed by Zero Carbon Project’s market.
- First purchase – Provides a reward of 30 Energis tokens until 2022, or until 35 TWh are consumed by Zero Carbon Project’s market.
- Consuming zero carbon energy – Provides a reward of 1 Energis token for every 100 kWh consumed in 2019. The requirement for further rewards increases by 20% each year, with rewards continuing until 2028. For a typical western household, this would be likely to provide 55 Energis tokens in 2019.
- Being nominated by an existing consumer – If nominated by an existing consumer, a bonus will be provided equal to the normal amount of Energis tokens they would be rewarded for their energy consumption.
- Spreading the word – Nominating new customers will provide existing customers with bonus Energis tokens equal to the tokens earned by the new customers’ consumption. The nomination scheme will run until 2022 or until 10 TWh are consumed by Zero Carbon Project’s market.
Zero Carbon Project’s roll out plan is shown in the figure below.
Zero Carbon Project provides a modularized smart contract architecture, which allows it to reward customers for their consumption and for the market to receive transaction fees. These fees can then be recycled into the reward pool, from which they are distributed for payment to energy consumers and paid into multi-signature wallets.
Zero Carbon project has a plan to rapidly increase its customer base. Firstly, there will be targeted market campaigns aimed towards three groups: the global crypto community, people concerned about climate change, and early adopters of technology. It aims to show that it provides an innovative solution to tackling a global problem, while offering financial benefits to consumers through reduced energy prices and Energis token rewards.
It will then outline its plans for the launch of Zero Carbon Markets in 2019 and 2020, as well as its generous reward scheme, including using its referral bonuses to spread the word about the Zero Carbon Project. ICO methods will be used to market to the global crypto-community, while a browser-based interface will be offered to accommodate mainstream clients if a wallet is not desired.
Competitors to the Zero Carbon Project
Zero Carbon Project has two main classes of competitors – other blockchain competitors and traditional competitors. Other blockchain competitors are mainly focused on peer to peer trading and new renewables farms, which are both several years away. In addition, they need to build new systems, which could also take several years.
Traditional energy suppliers are unable to provide a marketplace in which their own customers could compete, while energy brokers are not sophisticated enough to carry out the business model and develop the required software. Finally, traditional comparison and switching sites are concentrated on broadening the range of services they offer, e.g. insurance, credit cards and telecoms.
Zero Carbon Project has the first mover advantage on the zero-carbon market and Energis token rewards. It aims to capture the winner takes all economies of scale by leveraging Beond’s experience and track record of delivering short, medium and long-term goals.
Differences Between the Zero Carbon Project and Other Energy Blockchains
Zero Carbon Project and the Global Energy Market
Zero Carbon Project is targeting the growing global energy market, in which there is a spend of $5 trillion a year, assuming a 20 c/kWh cost. This could be worth $250 billion per year in transaction fees assuming a rate of 1 c/kWh at the point of consumption. It is also expected that there will be a 40% growth from electric cars and heating requirements, with an associated shift from distributed to centralized energy.
In the UK alone, there will be an estimated 5,000 TWh increase in energy demand from electric vehicles, equivalent to a 25% increase in energy consumption. In this changing market, only 3% of energy is currently sourced from renewable means. In the future, this could change, thanks in part to a change in the balance of energy consumption, with smaller consumers requiring an increasing share of energy.
The Zero Carbon Project Team
Zero Carbon Project is headed by a talented team with the capabilities required to make this project a success. It has world-class blockchain partners and advisors, as shown in the figure below.
Zero Carbon Project is a Beond initiative, drawing from the wealth of experience held by the energy consultancy established in 1999. It is focused on the energy challenges faces by its clients, and to tackling climate change, with a vision of a carbon-free world. Beond has grown significantly since its inception, and this growth has been driven by innovation.
Beond now has a market leading client base, with over 600 clients currently purchasing 3 billion kWh, equivalent to 500,000 households, or a spend of £300 million per year. They provide energy consultancy services with an experienced team.
This information has been sourced, reviewed and adapted from materials provided by Zero Carbon Project.
For more information on this source, please visit Zero Carbon Project.