AN ENHANCED DLT-BASED CARBON TRADING PLATFORM

Abstract

AN ENHANCED DLT-BASED CARBON TRADING PLATFORM Abstract Our project is an end-to-end holistic approach towards managing the amplifying triple planetary crisis from climate change, biodiversity loss, and pollution. There is an urgency for an innovative approach that: deals~with* carbon trading platform transparencyrand-embodies a cost-effective curve in tokenization. Urgencies of this kind of triple planetary crisis require comprehensive responses. Our research also resonates with a United Nations Development Programme call for integrated strategies to such challenges. We target the development of a more transparent carbon trading to build up an accountability and effectiveness-promoting tool for the regulation of emission discharges. Tokenization is, therefore, central in this approach, whereby a cost-effective curve would be introduced to optimize precisely the process under consideration. This not only gives easy access but also encourages wider participation in carbon reduction efforts. The combination of all these measures adds up to form a holistic strategy towards realizing net-zero carbon and hugely contributes to all the global efforts towards sustainability. It cannot overemphasize regulating CO2 emissions. Our project will greatly contribute to this end as it harmonizes with the programs internationally aimed at mitigating climate change. We respond to the interrelated challenges our planet faces with an integrated solution that is totally transparent, efficient, and accountable.

Specification

FORM 2
THE PATENTS ACT, 1970
(39 of 1970)
PROVISIONAL/ COMPLETE SPECIFICATION
(See section 10 and rule 13)

1. TITLE OF THE INVENTION - "AN ENHANCED DLT-BASED CARBON TRADING PLATFORM"

2. APPLICANT(S)
(a) NAME:
(b) NATIONALITY:
(c) ADDRESS:

(a) NAME:
(b) NATIONALITY:
(c) ADDRESS:
a) NAME:
b) NATIONALITY:
c) ADDRESS:
a) NAME:
b) NATIONALITY:
c) ADDRESS:
a) NAME:
b) NATIONALITY:
c) ADDRESS:
SRI SAI RAM INSTITUTE OF TECHNOLOGY
INDIAN
Sri Sai Ram Institute of Technology,
Sai Leo Nagar, West Tambaram,
Chennai - 600044
SUBASHIN1M /
INDIAN
Department CCE,
Sri Sai Ram Institute of Technology,
Sai Leo Nagar, West Tambaram,
Chennai-600044.
HARSHITHA T S
INDIAN
Department of CCE,
Sri Sai Ram Institute of technology,
Sai Leo Nagar, West Tambaram,
Chennai-600044.
SUBHIKSHA N
INDIAN
Department of CCE,
Sri Sai Ram Institute of technology,
Sai Leo Nagar, West Tambaram,
Chennai-600044.
AKILANDASOWMYA G
INDIAN
Assistant professor Department of CCE,
Sri Sai Ram Institute of Technology,
Sai Leo Nagar, West Tambaram,
Chennai-600044

Field of Invention
The field of invention relates to carbon trading.and environmental finance, focusing on improving transparency, efficiency, and scalability in carbon credit transactions. It involves integrating blockchain technology for tokenizing carbon credits as digital assets, ensuring secure, transparent, and traceable transactions. This field also addresses the creation of a standardized cost-efficient curve for tokenization processes and aims to harmonize regulatory' frameworks across jurisdictions for better global coordination in CO2 reduction efforts. Ultimately, this invention targets the sustainable finance sector enhancing the current carbon trading systems' ability to combat climate change through technological innovation and policy alignment.

Background of Invention :
1) Integrating Forecasting Service and Gen2 Blockchain Into a Local Energy Trading Platform to Promote Sustainability Goals

-Vivek Bhandari, Nabin Babu Ojha
It develops the Local Energy Market focusing on advanced forecasting services combined with Gen2 blockchain technology. This article deals with the need for peer-to-peer secure and transparent energy trading by further integrating energy retailers and distribution utilities into the framework. The study leverages blockchain's immutable record keeping and accurate predictive energy profiles, striving to create trust between the participants while enabling optimum exploitation of the energy transactions towards sustainability and strengthening the efficiency of local energy markets.

2) A Carbon Accounting and Trading Platform for the UK Construction Industry
-George Blumberg and Maurizio Sibilla
One such proposal suggests the development of a CATP, with an aim to minimize the large amount of carbon emissions generated by the construction industry of Britain. It argues for the for carbon accounting, reporting, and trading systems due to the pressing climate goals in practice.ln this paper, I discuss how decentralized finance and digital systems can be combined to smoothen carbon management processes. The authors hope that this taxation approach synchronized throughout the life cycle of the building will encourage the population towards sustainable practices and reduce their carbon footprint within the construction industry.

3) Joint Operation Mechanism of Distributed Photovoltaic Power Generation Market and Carbon Market Based on Cross-Chain Trading Technology
- Houyu Hel , Zhao Luo 2 , Qian Wang
The focus on the integration of blockchain technology with the energy market and on the mechanism of the joint operation between distributed PV power generation and carbon trading markets. It is a challenge that limits the efficiency and accessibility of these two markets in independent operation. The proposed mechanism in this paper-for cross-chain trading-will enable sharing of data and value circulation between these markets, thus augmenting the general effectiveness of carbon trading and electricity tranctions. This is pretty innovation in building a sustainable and scalable energy market.

4)
The Pathway to NDC and Carbon Neutrality: Roles of Optimum Degree between Marginal Abatement Cost and Social Cost of Carbon in the Thai Power and Industrial Sector
-Phitsinee Muangjai 1,2, Wongkot Wongsapai 2,3,, Tassawan Jaitiang
The Pathway to NDC and Carbon Neutrality: Roles of Optimum Degree between Marginal Abatement Cost and Social Cost of Carbon in the Thai Power and Industrial Sector" discusses the strategies set forward by Thailand concerning progress toward its Nationally Determined Contributions and carbon neutrality objectives. It covers the interfacing between marginal abatement costs and the social cost of carbon in power and industrial sectors. The proposed study is set to shed light on the optimization of emission reduction with consideration of cost and environmental aspects. In the analysis of this kind of situation, it is expected that the results will inform policies in conformity with visions of sustainable development within Thailand.

Summary of the Invention
A blockchain-based carbon trading platform is set to transform the carbon credit market by introducing a new level of transparency, security, and efficiency. This platform harnesses the power of decentralized ledger technology, which allows all transactions involving carbon credits to be easily tracked and verified. Blockchain's inherent immutability ensures that once a transaction is recorded, it cannot be altered, greatly reducing the risk of fraud and eliminating issues like double counting of carbon credits.

Traditional carbon trading systems often involve complex verification processes and third-party intermediaries, which not only slow down the market but also increase costs for participants. With blockchain, these, processes become automated and more efficient, allowing businesses to trade carbon credits with ease. The reduction in transaction costs is particularly beneficial for smaller companies that may have previously found participation in carbon trading too costly or cumbersome.

Another critical advantage of this blockchain-based platform is its ability to integrate with existing carbon markets and regulatory frameworks. It has been designed to align with international standards, ensuring that participants remain compliant with the rules set by global bodies such as the United Nations and the European Union.

Ultimately, this platform represents a significant step forward in the global fight against climate change. By making carbon credit trading more accessible and efficient, it provides businesses with a clear financial incentive to reduce their carbon footprint. Companies are encouraged to adopt more sustainable practices because they can easily buy and sell carbon credits, turning environmental responsibility into an economic opportunity.

In conclusion, a blockchain-based carbon trading platform has the potential to revolutionize the carbon credit market by addressing its current limitations and creating new opportunities for businesses to participate in the fight against climate change. By enhancing transparency, reducing costs, and ensuring regulatory compliance, this innovative solution plays a key role in promoting sustainabie practices and.supporting global efforts to mitigate the impacts of climate change.

Objectives of the Invention:
Build an integrated carbon trading platform that focuses on the triple planetary crisis of climate
change, biodiversity loss and pollution. This program will increase transparency and accountability about carbon markets with efficient interaction with stakeholders including businesses, regulators, researchers, and validators. The project will bridge the communication gap between the carbon credit
producers and the consumers with building trust and promoting sustainable practices.

This includes developing advanced technological architecture that builds visibility of the supply chain, product tracking, and smart contract deployment through advanced algorithms. Noting the sensitivities involved with carbon trading, the system will be built on blockchain technology to allow safe and transparent transactions. Smart contract integration is fundamental for automating processes, enforcing agreements, and setting up a cost-efficient curve for tokenization, enhancing accessibility and encouraging broader participation in the carbon markets.

Further, the system should be interactive in real time so that correct feedback could be given. Because the carbon trading decisions are more likely to call for quick responses, the design goals of the system must first ensure low latency and then high responsiveness so that the stakeholders respond very promptly to any changing condition in the market and act on good judgment.

Adaptability and personalization will be an important part of the development process. Given the unique requirements of all different people involved-ffom researchers validating emission reduction projects up to validators rating carbon credits-the platform will contain functionality that would permit experiences to be tailored. Custom ratings, flexible user interfaces, and specialized feedback mechanisms would thus fit individual preferences and requirements.

Through such multifaceted objectives, the dreamed-of carbon trading platform is envisioned to not
only be an efficient trading tool but also an inclusive and transparent environment that invites
meaningful participation by all. Contributing to the evolution of carbon market technologies, this
project would support globafsustainability goals and an urgent need for tratisiUon to net-zero carbon emissions toward a more responsible-future for our planet.

Statement of the Invention:
The invention of an enhanced DLT-based carbon trading platform represents a significant leap in the carbon market. By utilizing blockchain technology, it brings unparalleled transparency, security, and efficiency to carbon credit transactions. The platform's decentralized ledger technology ensures that all transactions are immutable and traceable, effectively eliminating fraud and double counting.

Moreover, this platform simplifies the trading process, reducing both costs and administrative burdens. Its design ensures compliance with international standards, making it easier for companies to engage in carbon trading. This seamless integration with existing carbon markets also promotes global cooperation in the fight against climate change.

The invention of an enhanced DLT-based carbon trading platform represents a significant leap in the carbon market. By utilizing blockchain technology, it brings unparalleled transparency, security, and efficiency to carbon credit transactions. The platform's decentralized ledger technology ensures that all transactions are immutable and traceable, effectively eliminating fraud and double counting.

Moreover, this platform simplifies the trading process, reducing both costs and administrative burdens. Its design ensures compliance with international standards, making it easier for companies to engage in carbon trading. This seamless integration with existing carbon markets also promotes global cooperation in the fight against climate change.

The platform incentivizes businesses to adopt sustainable practices by highlighting the economic benefits of carbon trading. By making it easier to buy and sell carbon credits, it encourages companies to reduce their carbon emissions, contributing to global efforts to combat climate change.

In conclusion, this innovative solution marks a significant advancement in reducing greenhouse gas emissions. It not only enhances the integrity and efficiency of the carbon market but also promotes environmental sustainability on a global scale.

Brief Descriptions of Drawings
Figure 1 - USER REGISTRATION AND PROFILE MANAGEMENT :
This figure describes Ease of the registration process ensures easy signing up by new users and
profile management
Figure 2- CARBON CREDIT LISTINGS AND TRADING MODULE :
This figure describes ease of carbon credit listing and trading modules

Figure 3 - VALIDATION AND VERIFICATION MODULE :
This figure describes the process of validation and verification module Implementation through
CD Smart Contracts

Functional Description of the Invention
OVERVIEW OF CARBON TRADING PLATFORM
Carbon Trading Platform is a platform which is meant for trading carbon credits. Organizations, as well as individuals, will be able to obtain effective control of their carbon footprint. The platform supports transparency, security, and high usability which leads users to sustainable practices and carbon credit trading. The system includes several modules that assure smooth trading operations, easily provide experiences to the users, and make compliance with all the related regulatory standards.

While learning and community engagement, the platform engages users in trading activities and raises awareness concerning carbon reduction strategies and environmental sustainability.

USER REGISTRATION AND PROFILE MANAGEMENT :
Registration:
Ease of registration process ensures easy signing up by new users; details such as name, email address, organization, and role (buyer, seller, or verifier) tire required. In order to have a safe trading environment, the user accounts have verification. This normally takes place in the form of an e-mail or phone call.

Profile Management:

Once registered, users can maintain their profiles, update any personal information, and express preferred choices at all times. Under customizable notification settings, users can know about any change in the market or a developed trading opportunity and will ensure that their experience is tailored according to their individual needs, considering their various roles and activities within the platform.

MODULE DASHBOARD
Overview of the Dashboard

There would be an on-boarding screen that would contain an intuitive dashboard showing snapshots of users' activities in trading. Some of the features on this dashboard include in real-time statistics regarding the available carbon credits, current market trends, and users' individual trading data. In such a dashboard, users should be able to easily navigate and manage their activities.

Market Analytics:

The dashboard will offer market analytics with graphical representations of charts and graphs to reflect real-time data on carbon credit prices, trading volumes, and trends over time. It would offer users insights into their carbon footprint or what actually serves as a move toward their potential carbon credit offsets, and thereby could make it easier to understand the respective environmental impact.

CARBON CREDIT LISTINGS AND TRADING MODULE :
Carbon Credit Listings:
The module, for instance, allows sellers to post available carbon credits. Such information provided while listing will include details like type, quantity, pricing, and eventual dates of expiration: Users can view listings and use advanced search and filter options to find credits meeting specific criteria so that trading can become smoother.

Trading Mechanism:
The users initiate trades by selecting the desired carbon credits from listings and offering them to the sellers. A safe escrow mechanism holds the credits during the transaction and ensures that the parties fulfill their obligations. This minimizes risks and augments the confidence in the trading activities; hence it offers, a safe trading environment to the users.

VALIDATION AND VERIFICATION MODULE :
Carbon Credit Validation:
A heavy validation process occurs for the validity of carbon credits traded on the platform. Assessment and verification of credits are indeed undertaken in observance of the established standards by recognized organizations. This is a very rigorous process that gives the users confidence that only valid credits are available on the trading platform.

Implementation through Smart Contracts
By using smart contracts, it is possible to automate the trading process. All the conditions that must be fulfilled in a transaction need to be satisfied before its execution, giving full assurance and enabling the conditions of the offer to be seen. This way, trading is made easier, plus it is seen with much greater transparency in that every transaction is recorded on the blockchain. The utilization cuts down disagreements and opens a secure trading environment.

Pricing and Auction Mechanism:

Dynamic Pricing Model:
The dynamic pricing model is the one that adjusts carbon credits prices based on the directions of supply and demand. The sellers could then set minimum acceptable prices and, therefore, compete in trading; thus, an improved user trading experience for trading.

Auction Feature:
The auction feature allows a seller to place his credits into competitive bidding, where the buyers can submit their bids within a time frame stipulated in the input. This promotes fair competition, thereby high-selling prices of carbon credits at the end and giving the buyers an opportunity to get credits through favorable terms and conditions.

TRANSACTION HISTORY AND REPORTING MODULE :
Transaction History:
The users can view all the transactions detailing their trading history in terms of trades, including date, type of credit, amount, and price. This would help them to trace their trading patterns and monitor their performance; when the strategy adopted is inefficient, they will be in a better position to alter carbon offset strategies.

Reporting Features
The reporting .module allows users to generate and download detailed reports on their carbon offset
contributions and overall impact. These reports can assist the user in monitoring and tracking
sustainability efforts, and they can be used to provide documentation for demonstration of regulatory compliance, thereby enhancing accountability and transparency to the trading activities.

SECURITY AND COMPLIANCE :
Data Security:
The platform also assesses the security of its user's data and enforces stringent measures, including encryption of user data and ensuring appropriate security protocols for access. Regular security auditing allows the firm to ensure the vulnerability spotting regarding unauthorized access as well as cyber threats to user information and transactions.

Compliance with Regulations
Compliance to appropriate regulations and standards is important in ensuring trust and legality in carbon trading. The site ensures that all activities are with respect to local and international laws. It gives users guidelines and best practices for regulatory requirements, creating a responsible trading environment.

EDUCATIONAL RESOURCES AND COMMUNITY ENGAGEMENT :
Knowledge Base:
There is a dedicated section on the platform that provides resource information in the form of articles, webinars, and tutorials relating to carbon trading, sustainability practices, and regulatory frameworks. By enriching the knowledge base of the users, the platform equips individuals and institutions with the ability to make intelligent decisions about carbon trading.

Community Forum
The community forum is where users interact and share their experiences, insights, and advice
regarding carbon trading strategies. Shared knowledge creates a feeling of community among the users and encourages collaboration in improving the trading experience on the website.

CUSTOMER SUPPORT :
Channels of Support
Access to customer support through email, live chat, and a dedicated hotline makes access easy in case of inquiries and technical issues, thus bringing about a positive user experience for getting answers as soon as possible.

FAO Section
The frequently asked section is an all-inclusive FAQ addressing any form of questions posed on the functionality of the platform, including its trading processes. This FAQ is better because it enhances user experience and increases the capabilities of users to carry out operations within this platform with more confidence.

Claims
We Claim ,
Claim [1]:
A method for enhancing the transparency of carbon trading platforms, comprising:
- A blockchain-based system that records and verifies transactions made within carbon credits to
ensure immutability and transparency.
- It ensures that the blockchain system, in this case, provides real-time updates for all carbon credit transactions for traceability purposes. .
- Smart contracts are also deployed to automatize the verification process and check on the compliance of carbon emission standards.
Smart contracts validate the legitimacy of carbon credits before a trade is executed.
- Real-time audit trails and reporting capabilities are made available for stakeholders.

Claim [2]:
The mechanism of Claim 1 is that carbon emission standards self-enforced through smart contracts
since legitimacy checks are performed on carbon credits before the transaction execution.
Tokenization curves installed in the blockchain can be able to control CO2 emissions dynamically
with full economic scalability

Claim [3]:
The approach in Claim 1, wherein dynamic pricing models for carbon credits are provided, which is a
real-time data-based emission-level-supported.
The system incorporates market algorithms to alter the prices of carbon credits based on how supply
and demand trends go.
Machine learning algorithms help them forecast future market movements and assist people in their
decisions about optimized trading.

Claim [4]:
The strategy of Claim 1, which involves machine learning algorithms on market trend prediction,
carbon trading strategy optimization, and more efficient cost allocation of carbon credits.
- Machine learning models use historical trading data to provide actual-time recommendations to the
users.
- These algorithms also calculate the risk associated with carbon credits and provide insights to buyers and sellers.

Claim [5]:
The process ofClaim"17wliicirihtegfates'roT"devices-witli-tlic-systcm-for-collc0ting-carbon-emission------_
in real-time.
-IoT devices capture carbon emission levels at several points in real-time and transmit this data on the blockchain.
Verified and added to the blockchain for the accuracy of the carbon footprint.

Claim [6]:
It can thus be considered as a carbon output tracking system and data collection automation, which
includes the following:
- IoT devices to be deployed in real-time carbon emissions tracking and transmission of that data into a
central hub.
- These devices process local emission data on an edge computing field for further upload into the
blockchain.
- Applying the CFC frameworks to the emissions data. This is for the carbon footprint to be measured
in an accuracy level and the records be updated on a blockchain system.
-The CFC framework ensures that formats and analyses of the different emissions data are always the
same. This is done based on different sectors.

Claim [7]:
The system of Claim 6, where the IoT devices communicate the carbon emission details through the edge computing process in the way that has processed first on the edge prior to uploading to the blockchain for the verification and transparency.
- As edge computing isn't allowing prolonging the processing of data, it decreases the latency, thereby ensuring timely updating of carbon-emission records.
- The data also processed is optimized for blockchain storage, hence lower transaction costs

Claim [8]:
Carbon trading integrated platform with:
-
records of all transactions done through blockchain technology which ensures transparent, unalterable records of carbon credit trading
- International regulators among other stakeholders can access records stored in the blockchain.
- Supporting scalability by integrating a cloud-based infrastructure to handle large-scale transactions and multi-party interactions. Must accommodate the management of multiple users and trading activities simultaneously on the cloud infrastructure.
- Providing API frameworks for third-party systems to access carbon credits data and participate in the carbon trading market.
- The API provides secure endpoints that enable a third-party application to interact with the system.

Claim [9]:
The process of Claim 8, whereby the API structure promotes connectivity and integration of the monitoring systems from external parties, thereby enhancing interoperability of data with foreign carbon markets. ;
API allows real time syncing with other carbon monitoring and trading systems other than the
platform.
-External systems can also pull audit reports from the blockchain via API calls

Claim [10]:
System of Claim 8, with further extension of the support of multi-currency for cross-border carbon
trade, so the transaction between international markets will be possible.
The platform will automatically convert carbon credit prices into the currency that is local,
following the available exchange rates.
It integrates payment gateways, which is a secure cross-border transaction.

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