How to track carbon discrepancies from factory to consumer using next-generation blockchains

Shruthi Rao is co-founder and Chief Business Officer at Vendia, a multi-cloud data sharing startup. She is the mother of 4 boys and 2 dogs.

Transportation is the largest source of greenhouse gas emissions in the United States today. The potential of electric vehicles (EVs) to reduce carbon emissions is why some states implemented measures that would completely ban the sale of gas-powered cars. New York is the latest state to ban the sale of gas-powered cars with a goal of reducing vehicle emissions by 85% by the year 2050.

Although states like New York are well-intentioned with these gas-powered car bans, electric cars are not born carbon neutral. In fact, Volkswagen recently published a study that explains the first 60,000 miles of driving an electric car results in more emissions than a conventional vehicle due to 10 to 20 tons of carbon dioxide from mining, manufacturing and shipping.

Right now, drivers can expect 2+ years of driving for their EV to be considered carbon neutral. However, there is no central system for drivers, car manufacturers or government bodies to track the progress of miles driven compared to reduced carbon levels. If we can’t track progress, especially as more states set standards for reduced emissions, how will we know if EVs are living up to their potential and actually helping the future of our environment?

From spending my career solving big business problems by analyzing how data is managed and shared, to co-founding a multi-cloud data sharing startup, I think we need a mechanism that tracks, collects and collects miles from cars without intruding into the drivers’ privacy. Next-generation blockchains are a way for automakers to have a single version of the truth when it comes to monitoring the emissions compensation process. But what aspects of electric cars can we track to estimate the true value of carbon neutrality over a vehicle’s lifetime? Here are some ways it can work:

Transparency from the production stage

Electric vehicles start with a larger carbon footprint than non-electric vehicles due to the battery manufacturing process. If electric vehicles are an investment in the future of our environment, then I believe there needs to be a mechanism to track all aspects of engineering that can then be optimized. In the first phase of production, the ledger system on which next-generation blockchain technology is built can be used to track product- and component-level carbon emissions required to build an electric car. With this specific level of data, EV manufacturers can be transparent about the carbon footprints of the vehicles they create from the start and also have a baseline for tracking the offset process.

Tracking the settlement process

The carbon offset process is not the same for every electric car. There are a number of variables, including location, individual driver behavior, road topography and even weather conditions. Knowing that behaviors such as carpooling can reduce the environmental impact of an EV’s system should be a reliable tracking system despite some of these external factors. Using next-generation blockchain to track the offset process could provide broader government contributions to environmental emissions, and lay the foundation for creating a reward system that motivates drivers to green behavior on the road. Another benefit of using next-generation blockchains is that drivers’ personal data is protected and secured so that privacy is never at risk. Imagine if the drivers were credited money back from the original purchase or given tax credits based on their own green driving behaviour.

Sustainable recycling of batteries

A white paper, from the International Council on Clean Transportation, recently concluded that 90% of critical materials needed for electric vehicle batteries can be obtained via recycling by 2040. However, the challenge in making this recycling potential a reality is that electric vehicle batteries differ greatly in chemistry and construction . This makes it difficult to create efficient recycling systems. Using next-generation blockchains for real-time supply tracking across multiple parties and individual technology stacks can help enable a centralized recycling system.

Implementation of blockchain technology

When it comes to implementing blockchain technology, there are a number of things to keep in mind to make the project successful.

• Prepare the data model. To be effective, blockchain projects require a common data schema that requires the buy-in of key participants. Allow yourself and your team extra time to support the integration and transformation of legacy data and systems to ensure that the critical element of the data model is set up for success from the start. When users skip the step of common data models, they have to figure out how to shove their critical business data into a bunch of typeless strings, which amounts to an architectural mess that wastes time and money.

• Work in the cloud. First-generation blockchains do not include support for SaaS-like deployment, making any attempt to use the technology an expensive and complex setup that often results in failure. When it comes to using blockchain technology, do your research to find the right provider that offers SaaS-like deployment so you work with real-time, accurate data regardless of parties, clouds, and geography.

• Ensure data protection. One of the advantages of blockchain is that the records cannot be changed and are encrypted end-to-end. However, some blockchain providers do not have modern security and compliance standards, which can be problematic when considering user privacy protection. When considering a blockchain partner, make sure they have the latest certifications and that their compliance programs such as SOC2 and GDPR are built into the core of the platform.

Data stored in blockchain’s distributed ledger system allows public systems and public consumers to trust reported emissions data. This transparency enables drivers to make informed decisions about which brand is more sustainable, governments to make informed policy decisions and brands to make engineering investments and smart decisions about source material suppliers. All of this together can help electric cars keep their promise to help fight the climate crisis in the years to come.

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