The main objective of the research is to look at the idea invention, innovation and possible future adoption of the usage of blockchain technology for tracking and reporting of CO2 emissions in the container shipping industry. Guided by the theories of innovation, adoption, and diffusion, the researcher was able to gather necessary data to address the research questions, develop result and to analyze it. Using both empirical data and literature reviews three research outcomes are presented.
First part is the research on the current implementation of Monitoring, Reporting, and Verification (MRV) programs for CO2 emissions. Second is putting into consideration the use of blockchain technology and its capabilities to address the needs, challenges, and areas of improvement in the current MRV implementations. The process innovation is then created. And lastly, the research looks at the perceived characteristics of the innovation and the challenges of its implementation that may affect the future adoption of it in the industry.
There are several sustainability and MRV programs that are can be mandatory or voluntary. Because of this, there’s no standardized CO2 Methodology for vessel and cargo specific tracking and reporting of CO2 emissions. In addition, ship operators are accessing different MRV systems. Another challenge is the data reliability and transparency of fuel consumption and other CO2 monitoring techniques.
The research proposes the use of blockchain technology, mainly its distributed ledger technology (DLT) and smart contract capabilities. The result of technology perspective assesses if blockchain is the best fit to address the industry issues, including the chosen type of blockchain. Then, the stakeholders in the system were identified, their obligations and intentions. After such, the Business Process Model (BPM) which is the process innovation is presented. The business process model presents the document workflow, stakeholders, process milestones, and the capabilities of blockchain as an innovation. Three models are created due to some stakeholder’s preferences on both vessel and cargo/TEU specific MRV system. The technology and proposed process innovation are then assessed, and propositions of its perceived characteristics as an innovation are investigated.
The research is currently in the pre-diffusion stage and does not create an actual working blockchain-based MRV system prototype. Therefore, the researcher is not giving a proposition that the innovation can be fully accepted or adopted in the future. Instead, the researcher will just give the factors that will affect on its possible future adoption.