The financial community has an enormous negative exposure to climate change (banks bank agriculture, climate change occurs, agriculture fails, banks lose money).
For the market to respond effectively to the growing climate risks, carbon risks must be fully identified, quantified and priced.
The market is, however, currently unable to quantify carbon risks due primarily to the existence of multiple structural and process barriers. These barriers have created political and trust-related risks that have stymied climate action for the last three decades. Now, emerging technologies offer a way forward.
We propose Emmi as the decentralised governance platform that is needed to overcome the structural barriers inherent to the status quo. Leveraging emerging technologies – namely a public blockchain, tokenisation, and smart contracts – the Emmi platform can at last enable the efficient identification, quantification, pricing, trading, and management of carbon.