Came across the following article today: [https://technode.com/2019/02/26/betting-on-blockchain-to-simplify-carbon-trading/](https://technode.com/2019/02/26/betting-on-blockchain-to-simplify-carbon-trading/) Both good news and bad news here... Mostly good news in the long term :) **Let's start with an overview of market conditions** "The global carbon market is very fragmented. In the absence of a unified platform to purchase and sell carbon credits , regional markets have adopted different standards and policies. Trading costs are high because buyers and sellers rely on intermediaries to handle the often complex and cumbersome process." "Carbon trading can be divided into two types: the compliance market (aka cap-and-trade), where entities can purchase carbon credits in order to meet regulatory targets; and the voluntary market, where companies and individuals voluntarily decide to purchase carbon credits to “neutralize” or offset their emissions. In China, the world’s largest emitter and exporter of carbon, both the compliance and the voluntary markets are still in their infancy." **Short-term Bad News** "Despite the fact that its emission reduction efforts have been in the spotlight in the past few years, China still yet to establish a fully functional nationwide carbon emissions trading scheme (ETS), yet another name for cap-and-trade. A recent survey suggests that the country [will only be able to achieve a fully functional ETS by 2025](http://www.eu-chinaets.org/upload/file/20180906/1536164718942317.pdf)" This may indicate that any role VeChain plays in Carbon Credits is likely not have any substantial effect on mainnet activity for quite some time. However, there are some bullish figures, albeit still nowhere near astronomical... "By the end of last October, the accumulated trade volume from China’s seven regional carbon trading pilot schemes still reached [RMB 6 billion](https://www.cnbc.com/2018/11/26/reuters-america-update-2-china-says-work-far-from-complete-on-national-co2-scheme.html) ($863.9 million), a significant increase from the previous year’s RMB 4.7 billion; a total of [250 million metric tons](https://www.cnbc.com/2018/11/26/reuters-america-update-2-china-says-work-far-from-complete-on-national-co2-scheme.html) of carbon dioxide had changed hands within the regional pilot schemes**."** *Key Obstacles - Businesses* "A key factor holding back development of China’s carbon market is the complexity involved—for example, in calculating the reasonable allocation of emissions allowances within the system. If underallocated, carbon credits would be too expensive for companies to purchase; on the other hand, overallocation of carbon permits could lead to dramatic price drops and possible market collapse—indeed, that was the main cause of the EU’s carbon market price crash in 2007. "To properly calculate allowance allocation, the government needs historical emissions data from companies, but Reklev pointed out that the reliability and accuracy of data reporting in China can be difficult to ascertain." *Key Obstacles - Individuals* *"*Whether we admit it or not, everyone bears some responsibility for generating carbon emissions, whether it’s in the products we buy, the electricity we use, or the fuel that powers our businesses, factories, and transportation. 'Although climate change is affecting every single person living on this planet,' said Lin, when it comes to taking actions to reduce emissions, “the efforts take place often on the national level rather than individual.” Personal carbon trading schemes have been proposed and tested, yet none have yet taken hold at scale. As things currently stand, individuals cannot directly participate in the global carbon economy.: **Long-term Good News** Future looks bright! :) "The demand for voluntary carbon markets will likely rise as the economy improves and people become more environmentally aware" I predict environmental awareness among both businesses and consumers will skyrocket by 2025, particularly as governments have failed - and disastrously so - to deal with and mitigate the effects of climate change, which is set to wreak havoc on the world in the next few decades. Millennials and Generation Z in particular are not just becoming more aware but also extremely distressed by lacking government initiatives. This will likely have an effect on future elections outcomes, particularly in developed countries (except maybe the U.S. where a climate change denier somehow has close to 50% approval rate). "Although the concept of neutralizing emissions hasn’t yet taken off in China, some Chinese tech companies are beginning to see value in participating in the carbon economy. Alibaba’s Ant Financial [launched the Ant Forest app](https://news.cgtn.com/news/3d45544d33556a4d/share_p.html?t=1487564199332) on the Alipay platform in 2016, providing some 700 million users with an online carbon account to measure the carbon footprint of their daily activities". ​ ​ ​ ​