Hyphen Global Reports On Importance Of Digital MRV For Carbon Markets

Hyphen Global Reports On Importance Of Digital MRV For Carbon Markets - Carbon Herald

Swiss climate tech company Hyphen Global AG recently published a report detailing the importance of atmospheric-based greenhouse gas (GHG) digital Measurement, Reporting and Verification (MRV) for the development of carbon markets. 

Carbon markets play a vital role in keeping global warming in check. However, low trust and uncertainty are still holding these markets back and preventing them from reaching the necessary scale. 

Hyphen believes one solution for this is monitoring greenhouse gas (GHG) levels directly in the air.

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This “atmospheric monitoring” tracks the flow of GHGs entering and leaving the atmosphere. 

Increases indicate emissions, while decreases show removal. It complements existing methods that estimate emissions based on activities and emission factors. 

While these estimates work well for controlled processes like burning fuels, they can be inaccurate for complex, widespread sources like agriculture, waste management, and natural carbon capture.

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More precise verification through atmospheric monitoring, specific to each location, would reduce the uncertainty surrounding both emission sources and sinks. 

This, in turn, would lead to a bigger and healthier carbon market with more funding for mitigation efforts. It would be particularly helpful for attracting investments in nature-based carbon projects, which also benefit biodiversity.

The report explores how this atmospheric data, reflecting actual emission reductions and removals, can be integrated into digital Measurement, Reporting, and Verification (dMRV) systems in near real-time. 

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This transparent, verifiable, and secure system should boost confidence in claims of reduced net emissions. Lower risk and uncertainty will lead to a more trusting market, attracting more investment, which will result in higher demand for carbon credits and lead to higher prices.

Higher prices, in turn, would then generate revenue to fund atmospheric-based dMRV for projects where traditional methods can’t reliably verify emission reductions or removals. 

As the market adopts this new system, increased investment will solidify its place in the carbon market landscape.

The full report can be found here.

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