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Geoengineering and the blockchain: Coordinating Carbon Dioxide Removal and Solar Radiation Management to tackle future emissions

2019
Scholarly Work
Andrew Lockley, Zhifu Mi, D’Maris Coffman
International Policy/Guidance
Carbon Dioxide Removal
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Summary/Abstract

Geoengineering is a proposed response to anthropogenic global warming (AGW). Conventionally it consists of two strands: Solar Radiation Management (SRM), which is fast-acting, incomplete but inexpensive, and Carbon Dioxide Removal (CDR), which is slower acting, more expensive, and comprehensive. Pairing SRM and CDR offers a contractually complete solution for future emissions if effectively-scaled and coordinated. SRM offsets warming, while CDR takes effect. This paper suggests coordination using a blockchain, i.e. smart contracts and a distributed ledger. Specifically, the paper proposes using integrated CDR futures with time and volume-matched SRM orders, to address emissions contractually before release. This provides an economically and environmentally proportionate solution to CO2 emissions at the wellhead, with robust contractual transparency, and minimal overhead cost.

The proposal offers a ‘polluter pays’ implementation of Long & Shepherds SRM ‘bridge’ concept. This ‘polluter geoengineers’ approach mandates and verifies emissions-linked payments with minimal friction, delay, or cost. Finally, the paper compares alternative market designs against this proposal, finding that this proposal offers several advantages. It concludes that blockchain implementation of the ‘polluter geoengineers’ approach is attractive and feasible for larger wellhead contracts.

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