www.ifc.org/thoughtleadership NOTE 61 • NOV 2018 Using Blockchain to Enable Cleaner, Modern Energy Systems in Emerging Markets Emerging markets must attract significant international financing to meet their goals for mitigating carbon pollution and increasing access to clean, affordable, reliable, and resilient energy. The authors* of this note examine how blockchain technology can—if paired with smart, interconnected devices—promote needed investments by both improving investment processes and promoting the adoption of modern energy systems and business models. Given the nascent status of both blockchain technology and blockchain applications specific to the energy sector, this note offers guidance to better assess where and how to apply blockchain technology to achieve a modern, clean, energy future including in emerging markets. The Paris Agreement (“the Agreement”)1 on climate change Applying Blockchain Technology to Energy indicates greater appetite by emerging markets (EMs) to Sector Investments in Emerging Markets deploy and track new methods of generating and delivering Blockchain’s ability to establish greater trust and support electricity in order to meet their commitments to reduce more automated transactions may allow it to transform greenhouse gas emissions. 2 However, to tackle climate sectors and solve the pain points of emerging market change and increase people’s access to reliable, clean investments.7 Such investments can lend themselves to energy, emerging markets must mobilize trillions of dollars blockchain-based solutions because they typically involve from various sources.3 a shared repository of information, multiple sources and Also, rather than operate centralized one-way, energy contributors of information to that repository, minimal generation systems to meet inflexible demand, energy trust between parties, one or multiple intermediaries, and providers should use renewable, distributed, and responsive various dependencies across energy infrastructure and energy resources4 that manage themselves through bi- management.8 directional5 communication, and enable investors and other Blockchain is compelling as an enabling technology for stakeholders to easily track and evaluate the impact of scaling energy systems powered by renewable energy and energy investments. responsive distributed energy resources. Energy sector Given the opportunities and challenges involved in meeting stakeholders believe blockchain technology may in fact be the goals of the Agreement, and increasing people’s access the critical additional ingredient to smart IoT-enabled devices to affordable electricity, to improve the investment process and big data that unlocks the new business models necessary and bolster the impact of their energy sector investments,6 for this energy sector transformation where millions (or even policy makers, regulators, and investors could increase the billions) of customer devices are being managed.9 use of blockchain technology, in combination with “smart” Historically, electric utilities and energy companies devices, Internet of Things (IoT), and big data. produced value through energy generation, transmission, and distribution in order to meet inflexible energy demand  * Douglas Miller, Origin Market Development & Regulatory Affairs Manager at the Energy Web Foundation; and Peter Mockel, Principal Industry Specialist, Climate Business, Economics and Private Sector Development, IFC. 1 This publication may be reused for noncommercial purposes if the source is cited as IFC, a member of the World Bank Group. from ratepayers. However, the opportunity to generate value in the energy sector is shifting as ratepayers become prosumers10 and provide greater demand flexibility on Clean electric grids.11 For example, in order to balance electricity energy loads, commercial, industrial, and residential customers can financing now use smart, interconnected devices that can automate the powering down of their electricity-consuming systems, battery storage, and other grid services in response to variability in renewable (or conventional) generation. New This shift toward focusing on devices at the grid-edge (e.g., business smart thermostats, appliances, and batteries) also implies models strong growth in the number of market participants that electric utilities manage—from thousands of ratepayers Blockchain today, to millions or billions of customer devices in the technology future. Blockchain technology offers great promise for value because it can automate and reduce the costs of managing this growth in market participants. As electric utilities manage the grid from the device level, they can automate operational decisions and maximize efficiencies FIGURE 1 Convergence of Opportunities across electric grids by using smart contracts. These run on Source: Authors blockchain to trigger, track, and settle the various grid services that smart, interconnected devices enable. The adoption of this leaner management of electric grids by utilities and system consumption is low, a battery storage “event” notifies operators is expected to reduce operational costs and unlock electric vehicles and other battery storage systems to store revenues from new services. It is also expected to help meet excess capacity, based on the specifications written into the policy mandates for implementing cleaner grids through the smart contracts governing them. combined use of variable renewable supply, and responsive Key Blockchain Application Domains demand-side resources. in the Energy Sector To better understand how this manifests in real-world There are many application domains for blockchain applications, consider the following blockchain applications technology in the energy sector that can deliver billions of using smart contracts. In both scenarios, the grid services dollars in global value annually through cost reductions— provided through demand response and battery storage are driven by greater automation and disintermediation—and tracked, and any associated compensation is settled with revenue growth. Investors should consider application customers for their grid services in real time on blockchain domains such as the following that offer the promise of and system operators gain confidence about these demand side value creation across the energy sector:12 resources actually delivering valuable services to the grid: • Certificate-of-origin systems for renewable energy Demand response to address undersupply of electricity markets: any application that documents the provenance generation: To avoid turning on a natural gas-fired peaking of renewable energy generation, issues certificates power plant on a hot summer day when there is a gap about the green attributes of each unit of renewable between electricity supply and demand, a demand response generation, and tracks ownership transfers between “event” is signaled to power down smart devices based market participants for their green energy claims, and on the specifications written into the smart contracts related voluntary or compliance reporting needs. governing them. • Utility billing systems: any application where Battery storage to address oversupply of electricity customers transact using cryptographic identities to generation: To store excess generation from wind manage metering, customer settlement, advanced rate power resources during evening hours when electricity implementation, or customer switching. 2 This publication may be reused for noncommercial purposes if the source is cited as IFC, a member of the World Bank Group. • Demand response programs: any application that automate energy management and reduce costs. conducts aggregation, real-time measurement and • Electron promotes the adoption of smart grid verification (M&V), settlement, and trading associated infrastructure by developing products for energy sector with participation in a given demand response event. market participants. Its various applications offer • Electric vehicle charging networks: any application tools to register meters, trade demand response event that manages customers, vehicles, and charging actions, and coordinate distributed energy resource infrastructure using cryptographic identities. management—all of which help create new energy sector • Transactive energy systems: any market design business models in emerging markets. Work to date has where electric grids are balanced and controlled been in the United Kingdom (UK). through intelligent software agents that perform grid • OLI enables transactive energy systems by optimizing communication and control functions for physical assets and automating the management of decentralized by responding to temporal and locational price signals. renewable generation and energy consumption with Some additional applications that could deliver billions modular design. This application provides utilities with of dollars in global annual value to the energy sector a new set of open-source hardware and software that include wholesale clearing and settlement, regulatory enables a shift in their business model—thus, increasing compliance, metered energy efficiency programs, grid asset the viability of decentralized, digital utilities. Work to procurement, and direct (energy-specific) climate finance. date has been in Germany. • Share&Charge is a decentralized protocol for electric Investors financing energy sector projects in emerging vehicle (EV) charging, transactions, and data sharing, markets that overlap with these application domains should and was developed by MotionWerk to promote EV consider using blockchain technology to maximize private usage. The protocol simplifies access to EV charging returns and broader social impacts. stations, participation in demand response events and The landscape of companies, consortia, and startups other grid services, and proof that electricity used to developing energy sector-specific blockchain platforms charge EVs comes from renewable generation. This and applications is growing.13 The suite of blockchain- application helps harmonize fragmented EV charge based solutions being developed and tested now—and point markets and grid service offerings to improve those coming in the future—can enhance the vision, the experience of existing EV owners, and increase the financial transfer, project implementation, and tracking appeal of EVs to prospective owners. Work to date has associated with emerging market investments in the energy been across Europe, and includes a pilot in the UK. sector. Below are a few examples of promising blockchain • Slock.it enables transactive energy systems through applications that are testing commercial viability through its “Economy of Things” technology that allows for existing or upcoming pilots, and explanations of how these any object to be rented, sold, or shared securely. Its can support energy sector investments in emerging markets, applications, including Incubed Client, allow machines which can provide a greenfield for introducing leapfrog to operate and respond to different energy sector technologies compared to existing markets: scenarios autonomously, which offers a solution for • LO3 Energy builds on its existing Brooklyn Microgrid emerging markets to implement transactive energy project in New York City with various products systems. Work to date has been across Europe. and applications such as Exergy and the Quantum • Sun Exchange increases solar power access for schools Hedging System. Exergy offers a system for managing and businesses specifically in emerging markets through the physical characteristics and transactions for an innovative fundraising approach that creates rental decentralized electric grids, which will help enable the income for those who buy solar cells and lease them to adoption of transactive energy and new relationships those using electricity from successfully funded projects. between utilities, prosumers, and consumers—especially This application combines aspects of crowdfunding in cities and communities worldwide that already have and “as-a-service” business models to pool funding independent grid edge projects. The Quantum Hedging from multiple sources, and deliver solar power to solar System, which is being implemented in partnership with cell lessees. This approach increases the viability of Direct Energy, enables enterprise customers to micro- solar access by eliminating upfront cost barriers to hedge their energy purchases on an hourly basis to prospective solar electricity users, and creates a long- 3 This publication may be reused for noncommercial purposes if the source is cited as IFC, a member of the World Bank Group. term revenue stream for solar cell investors. Several of emerging markets, this application gives renewable energy these projects have been implemented in South Africa. developers greater ability upfront to secure financing, and • Swytch encourages more sustainable behaviors and the demand for energy from buyers such as multinational broadening carbon markets by providing a financial corporations, cities, and universities. It also offers buyers reward for those engaging in a range of behaviors, and greater liquidity with these digital PPAs. The app is aggregating their collective impact. This application expected to become available for projects in Australia, encourages people, companies, and other organizations Estonia, and Spain in the last quarter of 2018. to adopt sustainable behaviors—starting with renewable These and other applications are setting the stage for a energy production. It also tracks the execution of any suite of blockchain-based solutions that will promote sustainable actions with an open-source oracle that acts investments in renewable energy, demand response, EVs, as a distributed authority—offering a means by which to transactive energy, and other application domains where motivate and prove dispersed sustainable actions. A pilot blockchain plays an important role in maximizing investor has been carried out in Germany. value and social impacts. Accelerating and coordinating • WePower enables financing for new renewable energy these currently-dispersed blockchain applications, is the generation projects by using tradable smart contracts Energy Web Foundation (EWF)—a global nonprofit based to establish digital power purchase agreements (PPAs) in Switzerland that is accelerating blockchain adoption in between parties. For renewable energy projects in the energy sector. EWF is developing an open-source, BOX 1: CERTIFICATE-OF-ORIGIN SYSTEMS FOR RENEWABLE ENERGY MARKETS Renewable energy markets have experienced significant their systems for tracking and reporting on their carbon growth over the past decade and are positioned to emission reductions. Because renewable energy generation continue expanding due to enabling policies, increasing assets lead to carbon emission reductions when they consumer demand, technological advancements, and displace polluting energy sources, countries in emerging cost reductions.14 However, to catalyze investments markets want to promote renewable energy investments to meet the goals of the Paris Agreement and unlock as part of a portfolio of options to reduce their carbon access to renewable energy, the process of tracking emissions. While there is a parallel opportunity to develop and reporting renewable energy investments must be separate blockchain applications for carbon markets due to simplified, disintermediated, and modernized. shared pain points,19 investors should consider collaborating Currently, renewable energy markets depend on with emerging market stakeholders to determine how certificates-of-origin, including the guarantees of blockchain applications developed for certificate-of-origin origin (GOs) used in the European Union, renewable systems can streamline documenting the carbon mitigation energy certificates (RECs) used in the United States, and impacts of new renewable energy projects. international renewable energy certificates (I-RECs) in EWF is developing EW Origin, an open-source and about 25 countries. These certificates of origin provide blockchain-based toolkit for certificate of origin trading detailed proof for each megawatt-hour (MWh) of and tracking systems, and running tests of real-world renewable generation,15 and are required because once scenarios in several countries with various energy electrons enter the shared electric grid, it is impossible to sector market participants.20 EW Origin can be used to distinguish whether they were generated by renewable build dApps that record the provenance, support direct or fossil fuel resources.16 trading, track ownership, and create reports for the There is need to improve the operation of existing green attributes of renewably generated electricity at renewable energy markets, and the certificate-of-origin the kilowatt-hour (kWh) level, as well as the associated markets underpinning them that, for example, better avoidance of carbon dioxide emissions. enable smaller renewable energy generators and buyers By adopting new technological tools that increase trust, to aggregate their supply and demand to gain greater simplify investment tracking, and reduce administrative market access.17 costs, blockchain-based solutions like EW Origin should To achieve their Paris Agreement nationally determined enable countries to leapfrog existing energy systems by contributions (NDCs),18 emerging markets must improve encouraging more renewable energy investments. 4 This publication may be reused for noncommercial purposes if the source is cited as IFC, a member of the World Bank Group. energy sector-specific blockchain and convening an does the solution use an open-source license? How is the ecosystem of users, developers, and regulators to inform the solution being audited and how are any identified issues development of EWF’s digital infrastructure and promote or shortcomings resolved? How is the development the development of new energy sector applications. funded, and what (if any) funding needs remain? • Ecosystem: Who are the current or potential users of the Key Assessment Criteria for Blockchain-based blockchain solution? Who advised on its development? Solutions in the Energy Sector How extensive and available is the community of Emerging market investors who are planning to deploy programmers who can support and build on the financing in any energy sector application domain where particular solution? blockchain technology provides value, should compare • Innovation: What are the licensing rules? To what extent the viability and quality of different blockchain solutions does the solution promote further innovations? What before selecting one. Some of the criteria and associated programming languages can be used? To what extent is questions for investors to use in their assessment include: the solution interoperable with others? • Technical architecture: How is the technology stack • Regulatory alignment: What are the relevant structured—from the underlying blockchain platform to regulations? What is the extent of regulators’ oversight the specific applications running on the blockchain? How over the solution? To what extent do regulators do applications interface with the blockchain itself? What understand and support the solution? components are executed on-chain versus off-chain? Because blockchain is a nascent technology, additional • Governance: Is the blockchain public or private? What assessment criteria for investors to consider will continue is the blockchain consensus protocol, and what are the to emerge. Depending on the solution’s maturity level, resulting implications for throughput on the blockchain? investors should also evaluate its performance and Who are the governing and administrative bodies? What suitability, based on its existing use in the market, and is the protocol for permissioning, system improvements, consider testing through pilots before promoting or emergencies, and other actions? What controls and adopting a specific solution. Nevertheless, the authors liabilities do users, governing bodies, and administrative of this note recommend that investors and policymakers bodies have? Who are the key stakeholders to engage prioritize open-source, public blockchains with who do not have a direct governance role, and at what permissioned consensus protocols, as these can be expected junctures should this occur? to maximize participation, innovation, and throughput. • Features: What are the users’ key functional Emerging market investors, and any regulators and market requirements? Does the blockchain solution meet users’ participants with whom they work, can use the key business and regulatory needs? assessment criteria listed above to evaluate the suitability • Data collection and reliability: What are the data of applications and platforms such as EW Origin, and sources? What is the methodology for sending data the Energy Web blockchain infrastructure on which it from these data sources to the blockchain? What data runs. They can also use these key criteria to assess other are stored on-chain versus off-chain, and how is this applications promoting clean energy investments that also managed? What are the protections and processes in run on the EW blockchain, or others in the fast-growing place to ensure data security, privacy, and reliability? energy sector landscape. • Throughput: How much throughput can the blockchain Given the regulated nature of energy markets across solution handle? What are the gas limits and gas fees, the globe, regulatory support is especially critical to where gas is the computational effort a given transaction scaling blockchain applications. Regulators, who are still needs in order to be executed on blockchain? What is the deepening their understanding of how this technology average block time? How do users pay for transactions, works, identifying concerns, and the regulatory oversight and how are transaction costs minimized?21 that may be needed—should be engaged early and often • Development process: What methods are programmers so that they can increase their understanding of particular using to develop the blockchain solution? Who blockchain platforms or dApps, provide input, and draw is managing this development process, and how on this experience to identify best practices and regulatory transparent is it? Who owns the intellectual property, or implications. For example, EWF is collaborating with a 5 This publication may be reused for noncommercial purposes if the source is cited as IFC, a member of the World Bank Group. national certificate-of-origin issuing body (or registry) TOP KEY ASSESSMENT to develop a national reference on the implementation of APPLICATIONS CRITERIA EW Origin that meets regulatory needs. After the target completion date of October 2019, this will serve as a freely • Certificates of origin • Technical architecture available open-source technology “template” for use by • Utility billing • Governance national regulators for issuing, trading, claiming, and • Demand response • Features reporting on certificates of origin in their markets. • Electric vehicles • Data collection and • Transactive energy reliability Both before and after running simulations or pilots, and based on existing regulations, this engagement could include • Throughput proactively seeking early feedback from regulators about the • Development process platform or dApp’s technical architecture, governance, and • Ecosystem data sources. Also, to develop best practices for adopting • Innovation block-chain solutions for different markets, investors • Regulatory alignment should share their insights with regulators about their own blockchain assessments and pilots. FIGURE 2 Top Applications and Key Assessment Criteria for Blockchains in the Energy Sector Conclusion Source: Authors Investors have a tremendous opportunity with the Paris ACKNOWLEDGMENTS Agreement to accelerate and scale the adoption of clean, affordable, reliable, and resilient energy access in emerging The authors would like to thank the following colleagues for their review and suggestions: Gordon Myers, Chief Counsel, markets. To tackle the challenges associated with deploying Technology and Private Equity, Legal Department, IFC; Omar financing in emerging markets, and capture the opportunity Chaudry, Manager, Sector Economics and Development presented as the energy sector modernizes, investors should Impact—Infrastructure, Economics and Private Sector leverage blockchain technology when they invest. Development, IFC; Tonci Bakovic, Chief Energy Specialist, Global Provided that blockchain applications meet business and Power, Infrastructure and Natural Resources, IFC; Marina regulatory needs, in combination with smart devices, Niforos, founder of Logos Global Advisors, in March 2018, she was appointed to the Blockchain Policy and Framework blockchain technology can deliver significant value across Conditions Working Group of the EU Blockchain Observatory a range of energy sector application domains. Moving & Forum; and Thomas Rehermann, Senior Economist, Thought forward, investors and emerging market policymakers Leadership, Economics and Private Sector Development, IFC. and regulators should use the assessment criteria provided Additional EM Compass Notes and reports about above as a starting point to evaluate different blockchain blockchain and its opportunities for emerging markets: solutions. Ultimately, these solutions can help unlock Blockchain—Opportunities for Private Enterprises in Emerging greater financing across the globe for democratized, Markets (report), IFC, October 2017; Can Blockchain Technology decentralized, digitized, and decarbonized electric grids. Address De-Risking in Emerging Markets? (Note 38); Blockchain in Development—Part I: A New Mechanism of “Trust”? (Note ABOUT THE AUTHORS 40); Blockchain in Development—Part II: How It Can Impact Douglas Miller, Origin Market Development & Regulatory Emerging Markets (Note 41); Blockchain in Financial Services in Affairs Manager, Energy Web Foundation (doug.miller@ Emerging Markets—Part I: Current Trends (Note 43); Blockchain in energyweb.org) Financial Services in Emerging Markets—Part II: Selected Regional Peter Mockel, Principal Industry Specialist, Climate Strategy Developments (Note 44); Beyond Fintech: Leveraging Blockchain for and Business Development, Climate Business, Economics and More Sustainable and Inclusive Supply Chains (Note 45); Blockchain Private Sector Development, IFC (pmockel@ifc.org) Governance and Regulation as an Enabler for Market Creation in Emerging Markets (Note 57). 1 United Nations. “The Paris Agreement.” Accessed September 18, 2018. https://unfccc.int/process-and-meetings/the-paris-agreement/the-paris-agreement 2 World Economic Forum (WEF). 2017. “The Future of Electricity—New Technologies Transforming the Grid Edge.” 3 Meltzer, Joshua P. 2018. “Blending Climate Funds to Finance Low-Carbon, Climate-Resilient Infrastructure.” Global Economy & Development Working Paper 120, The Brookings Institution; see also: United Nations Framework Conference on Climate Change (UNFCCC). 2015. “Conference of 6 This publication may be reused for noncommercial purposes if the source is cited as IFC, a member of the World Bank Group. the Parties—Twenty-first session, Paris, 30 November to 11 December 2015. Item 4(a) of the Provisional Agenda. Durban Platform for Enhanced Action (decision 1/CP.17)—Report of the Ad Hoc Working Group on the Durban Platform for Enhanced Action. Synthesis Report on the Aggregate Effect of the Intended Nationally Determined Contributions. Note by the secretariat.” 4 This includes various “smart” Internet of Things (IoT)-enabled devices that can be programmed to respond to various situations that arise in a given electric grid. 5 Bi-directional flows of electricity and associated communications to/from an electric grid and grid assets (e.g., electric vehicles, batteries, and smart devices) are an important feature of promoting and managing distributed energy resources. Utilities will have to make investments to implement systems that can handle these bi-directional flows. See also: Sam Hartnett, et al. 2017. “The Decentralized Autonomous Area Agent (D3A) Market Model—A Blockchain-based Transactive Energy Implementation Framework for the 21st Century Grid.” Concept Brief, Energy Web Foundation, 2017. 6 A blockchain is a decentralized database of transactions between two or more parties that are split into blocks that are validated by the entire network through encryption and added to the chain of prior transactions, where copies of the database are replicated across multiple locations (or nodes). Each block contains key details about the transactions, and each block is added as long as the block is validated by the consensus protocol used by the network. See also Niforos, Marina. 2017. “Blockchain in Development—Part II: How It Can Impact Emerging Markets.” EM Compass Note 41, IFC. 7 Marina Niforos. 2017. “Blockchain in Development—Part I: A New Mechanism of ‘Trust’?” EM Compass Note 40, IFC; see also, Paul Nelson. 2018. “Primer on Blockchain—How to Assess the Relevance of Distributed Ledger Technology to International Development”, USAID, 2018. https://www. usaid.gov/sites/default/files/documents/15396/USAID-Primer-Blockchain.pdf. 8 World Economic Forum. 2018. “Blockchain Beyond the Hype—A Practical Framework for Business Leaders.” White Paper, WEF, April 2018. https:// www.weforum.org/whitepapers/blockchain-beyond-the-hype; see also Graham, Wesley. 2018. “Building it Better: A Simple Guide to Blockchain Use Cases.” Blockchain at Berkeley blog, Feb 5, 2018. https://blockchainatberkeley.blog/building-it-better-a-simple-guide-to-blockchain-use-cases- de494a8f5b60 9 Henderson, Kimberley, Emily Knoll and Matt Rogers. 2018. “What Every Utility CEO Should Know About Blockchain.” McKinsey, mckinsey.com, March 2018. 10 In the case of energy, a prosumer is an individual that not only consumes energy, but also produces it. Christopher, Daron. 2017. “Consumer vs Prosumer: What’s the Difference?” May 11, 2017, US Department of Energy. https://www.energy.gov/eere/articles/consumer-vs-prosumer-whats- difference 11 Goldenberg, Cara, Mark Dyson and Harry Masters. 2018. “Demand Flexibility—The Key to Enabling A Low-Cost, Low-Carbon Grid.” Insight Brief, Rocky Mountain Institute. 12 Miller, Douglas and Claire Henly. 2017. “Blockchain Is Reimagining the Rules of the Game in the Energy Sector.” Rocky Mountain Institute, rmi.org, August 28, 2017. https://rmi.org/news/blockchain-reimagining-rules-game-energy-sector/. 13 Boersma, Thomas and Leoncio Montemayor. 2017. “Report: Comprehensive Guide of Companies Involved in Blockchain & Energy.” Solarplaza. 14 Bloomberg NEF. 2018. “New Energy Outlook 2018—BNEF’s Annual Long-term Economic Analysis of the World’s Power Sector Out to 2050.” https:// about.bnef.com/new-energy-outlook/; see also International Renewable Energy Agency (IRENA). 2018. “Global Renewable Generation Continues its Strong Growth, New IRENA Capacity Data Shows.” http://www.irena.org/newsroom/pressreleases/2018/Apr/Global-Renewable-Generation-Continues- its-Strong-Growth-New-IRENA-Capacity-Data-Shows. 15 See for example “The Definitive Guide to Global Energy Attribute Certificates for Commercial, Industrial, and Institutional Buyers.” Renewal Choice Energy. https://3blmedia.com/sites/www.3blmedia.com/files/other/EAC.Definitive_Guide_-_ESS.pdf 16 These data-rich certificates describe how, where, when, and who generated a given MWh. Any entity wanting to make a credible renewable energy claim for regulatory or voluntary purposes must procure these certificates, either bundled with, or separate from, their physical electricity purchases. As such, these certificates have their own markets, and serve as a de-facto consumer-driven subsidy for renewable energy because they provide an additional revenue stream for renewable energy generators. 17 Certificate of origin markets rely on third parties, outdated technologies, and multi-step processes that vary across geographies to indicate the proof of renewable generation. The resulting administrative costs, transaction costs, and other pain points, as well as the complexities of proving renewable energy generation or purchases, frustrate the current (mostly large) market participants, and discourage others from entering the market. For their renewable energy trades, certificate of origin systems should make it as easy as possible for market participants to obtain proof for their voluntary- or compliance-reporting requirements, which is based on secure, reliable generation data. The user experience associated with certificate-of-origin systems should also become more standard across markets to streamline investments for the multinational renewable energy developers and buyers who are enabling renewable energy developments across the globe. 18 Meltzer, Joshua P. 2018. “Blending Climate Funds to Finance Low-Carbon, Climate-Resilient Infrastructure.” Global Economy & Development Working Paper 120, The Brookings Institution; see also: United Nations Framework Conference on Climate Change (UNFCCC). 2015. “Conference of the Parties—Twenty-first session, Paris, 30 November to 11 December 2015. Item 4(a) of the Provisional Agenda. Durban Platform for Enhanced Action (decision 1/CP.17)—Report of the Ad Hoc Working Group on the Durban Platform for Enhanced Action. Synthesis Report on the Aggregate Effect of the Intended Nationally Determined Contributions. Note by the secretariat.” 19 “Blockchain and Emerging Digital Technologies for Enhancing Post-2020 Climate Markets.” 2018. World Bank Group; see also Chen, Delton. 2018. “Utility of the Blockchain for Climate Mitigation.” JBBA, Vol 1, Issue 1, April 26, 2018. https://jbba.scholasticahq.com/article/3577-utility-of-the- blockchain-for-climate-mitigation. 20 See Energy Web Blockchain: https://energyweb.org/blockchain/; see also Miller, Douglas and Jens Griesing. 2018. “ Engie, Microsoft, SP Group, DBS Bank, TWL, E.ON, and Sonnen Test the First Version of EW Origin Blockchain App.” Energyweb.org, April 20, 2018. https://energyweb. org/2018/04/20/engie-microsoft-sp-group-dbs-bank-twl-e-on-and-sonnen-test-the-first-version-of-ew-origin-blockchain-app/; EWF will make the full open-source EW Origin toolkit publicly available for reference and use as a template by other REC, GO, and I-REC trading and tracking systems so that application developers can build and deploy their own modernized technology services. In the context of emerging markets, which generally do not have robust renewable energy tracking systems in place, EW Origin can be used to build blockchain-based applications that reduce investors’ administrative burden for tracking the impacts of their wind, solar, and other renewable energy investments. The regulators who oversee renewable energy markets can adopt and modify open-source blockchain applications such as EW Origin to deploy modern trading and tracking systems for certificates of origin that meet their markets’ needs. 21 Krämer, Kai and Sam Hartnett. 2018. “When it Comes to Throughput, Transactions Per Second is the Wrong Blockchain Metric”. energyweb.org, May 20, 2018. https://energyweb.org/2018/05/10/when-it-comes-to-throughput-transactions-per-second-is-the-wrong-blockchain-metric/. 7 This publication may be reused for noncommercial purposes if the source is cited as IFC, a member of the World Bank Group. IFC 2121 Pennsylvania Avenue, N.W. Washington, D.C. 20433 U.S.A. ifc.org/ThoughtLeadership