1-s2.0-S0306261924011462-main

Applied Energy 372 (2024) 123763
Contents lists available at ScienceDirect
Applied Energy
journal homepage: www.elsevier.com/locate/apenergy
An efficient tool for real-time global carbon neutrality with credibility of

delicacy management: A Modelx + MRV + O system
Qingqing Li a, b, * , Jinbo Shi c , Wenxiang Li d , Siyun Xiao e , Ke Song f , Yongbo Zhang g ,
Zhenqi Wang a, h , Jie Gu a , Bo Liu i , Xiaoming Lai j
a
College of Environmental Science and Engineering, Tongji University, Shanghai 200092, China
b
Shanghai Tanlian Technology Co., Ltd, Shanghai 200062, China
c
School of Statistics and Mathematics, Shanghai Lixin University of Accounting and Finance, Shanghai 200120, China
d
Business School, University of Shanghai for Science and Technology, Shanghai 200093, China
e
School of Foreign Languages, Shanghai Jiaotong University, Shanghai 200240, China
f
DNV Supply Chain and Product Assurance, Beijing 100020, China
g
Extensive Standard Technical Services Co.,Ltd, Dongguan 523073, China
h
Shanghai Academy of Environmental Sciences, Shanghai 200233, China
i
School of Automotive Studies, Tongji University Shanghai, 201804, China
j
Shanghai Environment and Energy Exchange, Shanghai 200083, China
H I G H L I G H T S
• We proposed an efficient real-time carbon neutralization mechanism with credibility based on IoT and blockchain technology.
• Two cases studies of the returnable package scenario and photovoltaic power generation scenario about how to build up a real time carbon reduction model
(Modelx).
• The novel Modelx+MRV + O system can be globally promoted to all the carbon reduction scenarios, and carbon neutralization scenarios accordingly.
• An efficient and credible carbon ecosystem comprising government regulatory agencies, emission reduction entities, and third-party auditing organizations can
achieve carbon neutralization.
A R T I C L E I N F O A B S T R A C T
Keywords: Current carbon neutralization systems are time-consuming, which generally require at least one to two months.
Real-time MRV system We propose a highly efficient real-time carbon neutralization mechanism, a Modelx+MRV + O system based on
Real-time carbon neutralization system the Internet of Things and blockchain technology for all the carbon reduction scenarios. This mechanism includes
Returnable packaging
an accounting model for a certain distributed carbon reduction scenario, and real-time M, RV, and O systems,
IoT
Blockchain
enabling enterprises, products, or individuals to reliably reach carbon neutrality in real time. We demonstrated
LCA how to build a real-time model (Modelx) by proposing a carbon emission reduction methodology for the
returnable packaging scenario and a photovoltaic power generation scenario combining IoT technology for a
traditional methodology for polar electricity. We found that the proposed system can achieve real-time analysis
based on the monitored turnover number and electricity generated and avoid falsified values. Because carbon
neutrality is essential to reduce carbon emissions and combat climate change globally, this system can accelerate
the sustainable transformation by managing carbon neutrality globally.
1. Introduction European Union, have established net-zero emission targets, accounting

for approximately 88% of global emissions. Over 9000 companies, 1000
In response to climate change, >140 countries, including major cities, 1000 educational institutions, and 600 financial institutions have
emitting nations such as China, the United States, India, and the joined the Race to Zero, pledging to take rigorous and immediate action
* Corresponding author at: College of Environmental Science and Engineering, Tongji University, Shanghai 200092, China.
E-mail address: [email protected] (Q. Li).
https://doi.org/10.1016/j.apenergy.2024.123763
Received 21 March 2024; Received in revised form 6 June 2024; Accepted 17 June 2024
Available online 27 June 2024
0306-2619/© 2024 Elsevier Ltd. All rights are reserved, including those for text and data mining, AI training, and similar technologies.
Q. Li et al. Applied Energy 372 (2024) 123763
to halve global emissions by 2030 [1,2]. Additionally, >500 companies Overall, the current global carbon neutrality problems are as follows:
set net-zero targets through the Science-Based Targets Initiative’s
Corporate Net-Zero Standard [3]. Their objective is to achieve climate 1) From the perspective of carbon emissions reduction projects, the
neutrality, which refers to achieving net-zero greenhouse gas emissions development process of carbon assets is time-consuming and in
by balancing those emissions so that they are equal (or less than) the volves various stakeholders, including emissions reduction project
emissions that get removed through the planet’s natural absorption; development companies, government regulatory agencies, carbon
essentially, it means reducing emissions through climate action [4]. asset exchanges, third-party verification, and certification bodies.
Consequently, carbon neutrality necessitates undertaking action to For instance, the development of CDM projects typically requires at
counterbalance the greenhouse gas emissions produced by human least one year. Using the China Certified Emission Reduction Scheme
activities. (CCER) as an example, the development process entails methodology
In cases where enterprises fail to achieve carbon neutrality through selection prior to registration, preparation of the Project Design
measures such as enhancing energy efficiency and adopting renewable Document, approval by the Designated Operational Entity (DOE),
energy, they might opt to procure carbon credits (CC) from carbon project registration, and post-registration activities such as prepa
reduction projects to offset their emissions, and this study explores this ration of monitoring reports, DOE verification, and registration of
scenario. The global offsetting mechanisms fall into three predominant emission reduction quantities. The average development time ex
categories (Table 1). The first category entails carbon offset mechanisms ceeds one year [17], ranging from one and a half years to two or
operating under cap-and-trade mechanisms and those under the re three years [16], indicating relatively low efficiency.
quirements of industry associations. The former encompasses the Eu
ropean Union, China, Tokyo, Mexico, and South Korea [5], whereas the 2) From the perspective of offsetting and trading processes, various
latter includes Carbon Offsetting and Reduction Scheme for Interna challenges persist, including limited transparency, inconsistent
tional Aviation (CORSIA), etc. The second category comprises carbon standards, absence of unified regulatory systems, and notable trust
reduction projects acknowledged by established institutions such as the issues. Each participating entity entails considerable document ex
Verified Carbon Standard (VCS), Gorden Standard (GS), and American change, which increases the likelihood of errors that could affect the
Carbon Registry (ACR). The third category encompasses voluntary precision of the outcomes [18].
emission reduction initiatives involving corporate and individual
voluntary behaviors, such as the Guangdong Inclusion Mechanism, 3) Concerning carbon emissions reduction projects, the certification
Shanghai Inclusion Mechanism, and carbon reduction digital ledgers. process entails the oversight of numerous management entities.
This study concentrates on offsetting mechanisms and carbon neutrality, Identical emission reduction quotas are used to offset purposes on
and carbon emissions allowance trading is beyond the scope of this multiple occasions. Furthermore, the absence of a consolidated
study.
Table 1
Global Carbon Emission Reduction Market Projects (Including Carbon Market Offsetting Mechanisms) and Regulatory/Carbon Reduction Review Body.
Category Carbon Market Type of Emission Reduction Projects Emission Reduction Validation/
Verification Body
First China Carbon Market • Methodology of four voluntary greenhouse gas emission reduction projects, including National Development and Reform
Category afforestation carbon sequestration, grid-connected solar thermal power generation, Commission (NDRC) [6]
grid-connected offshore wind power generation, and mangrove planting.
Eu ETS • Clean Development Mechanism (CDM) projects including energy, energy distribution European Commission, Competent
and demand, manufacturing, chemicals, construction, transportation, mining, mineral Authorities of Member States [7]
production, and metal production
Tokyo Cap-and-Trade • Emission reduction of small- and medium-sized equipment Tokyo Metropolitan Government –
Program • Renewable Energy Projects Bureau of Environment
• Tokyo Off-Market Projects
CORSIA • Deployment of renewable energy The International Civil Aviation
• Methane capture, forestry, and other emissions-reducing or avoidance projects Organization [8]
Korea-ETS • Industries including domestic aviation, transportation, construction, and Ministry of Environment
manufacturing
Mexico Carbon Market • Pilot carbon emission trading system covering energy and industrial sectors Secretariat of Environment and Natural
Resources
Second VCS • Biochar projects Qualified Validation/Verification Bodies

Category • Improved forest management projects [9]
GS • Transition to an existing project from the UN CDM Validation/Verification Bodies (third
• Other standards to Gold Standard party review body recognized by GS) [10]
ACR • Approved carbon accounting methodologies Approved Validation/Verification Bodies
[11]
Global Carbon Council • Methodology for all CDM filings Approved Validation/Verification Bodies
(GCC) • Self-filed methodologies, including renewable energy generation projects
Third Guangdong Inclusion • Forestry and marine carbon sinks in the province Department of Ecology and Environment
Category Mechanism of Guangdong Province [12]
Carbon Emission • Personal green life scenarios such as clothing, food, housing, transportation, use, and Approved Validation/Verification Bodies
Reduction Digital Ledger travel
[13]
Shanghai Inclusions • Reduction of carbon emissions in the areas of green travel, energy conservation, Shanghai Municipal Bureau of Ecological
Mechanism resource recycling, and the utilization of renewable energy Environment [14]
Gwangju Carbon Bank • Voluntary energy-saving efforts by households (regarding electricity, city gas, and Korea Environment Corporation [15]
System waterworks)
Note: The most widely used applications in China are the VCS, GS, and Global Carbon Council initiated by the Gulf Research and Development Organization [16].
2
platform for transforming noncertifiable emission reductions into short-term memory neural network algorithms to reduce the risk of
commercial equivalents persists. compliance. These studies demonstrate that carbon emissions manage
ment based on blockchain technology can improve the accuracy and
Hence, a comprehensive system that streamlines real-time moni openness of carbon asset data and propel the oil and gas industry to
toring, reporting, verification, and offsetting mechanisms while guar wards a low-carbon ecological era. Hao et al. [22] developed a
anteeing the security and integrity of data and transactions is necessary. blockchain-based chip carbon footprint tracing model using the
Therefore, there is an ongoing exploration of the combined appli Hyperledger Fabric platform. From a policy perspective, countries such
cation of emerging technologies, such as the Internet of Things (IoT) and as the United States, the European Union, Germany, South Korea, Japan,
blockchain, to the carbon market. This study, utilizing “IoT” and “car and Australia have introduced significant policies to promote the
bon emission” as keywords, identified 365 relevant articles from innovative development of IoT technology domestically. In China, the
January 1, 2012, to January 7, 2024, through a search on the Web of national “14th Five-Year Plan” proposes to promote the comprehensive
Science (Fig. 1), and conducted cluster analysis using Citespace. The development of the IoT and incorporate IoT and blockchain into seven
results indicate that the IoT has extensive applications in areas such as key industries of the digital economy [23]. The “Data element×Three-
carbon footprint, carbon emissions, and PM2.5, which is significant for Year Action Plan (2024–2026)” released by the National Bureau of
improving the timeliness of the monitoring, reporting, and verification Statistics in December 2023 emphasizes the multiplier effect of data
(MRV) system. Keyword analysis revealed a significant growth trend in elements to empower economic and social development, with a priority
IoT-related technologies such as smart cities, cloud computing, and focused on 12 key application areas, including green and low-carbon
wireless sensing since 2018. Five additional publications on blockchain- initiatives [24].
related technologies have been published since 2020. This is crucial for From the perspective of using the blockchain to address the security
bolstering the credibility of the trading systems. of carbon accounting and trading, in practice, Seindefad,K et al. [25]
Regarding timeliness in addressing carbon accounting through the propose a collaborative approach to enhance greenhouse gas emissions
IoT, its application in carbon emission MRV has become increasingly monitoring, reporting, and verification (MRV) within the Paris Agree
widespread in recent years. Internationally, the Carbon Dioxide Surface ment. They develop a consortium blockchain platform, exemplified
Observation System of the United States National Oceanic and Atmo through Hyperledger Fabric, aiming to reduce costs and streamline GHG
spheric Administration [19] has achieved online monitoring of near- management through automation and collaboration. Seidenfad,K et al.
surface annexes in multiple international and regional locations [26] present an ongoing field study, whose goal is to design an effort
worldwide. This system employs various sensors to detect >30 major sharing consortium, which employs a blockchain-based edge infra
and minor greenhouse gases, including water vapor and ozone. In the structure to securely connect organizations and their production ma
Chinese construction sector, Wang et al. [20] demonstrated the use of chinery to enable cooperative automation of MRV for GHG emissions.
IoT devices (such as smart meters and water meters) to collect real-time The Toucan protocol is the most mature system [27] which takes credits
data from over 500 projects according to carbon emission standards in from the VCS, retires them, and mints a replica token on the blockchain
the construction industry. They also established an information man known as a Base Carbon Tonne that can be transferred or sold as
agement system that enabled data providers and auditors to submit and required. However, the blockchain technology is not used in the VCS
review carbon emissions data on a consortium blockchain, thereby certification process. Theoretically, Richardson et al. [28] proposed that
enhancing the efficiency of carbon emissions statistics and management. the blockchain can accelerate the deployment of emissions trading
At the theoretical level, in the petrochemical industry, Song et al. [21] systems (ETS) worldwide and improve the efficiency of existing systems.
analyzed the main issues existing in the management of carbon assets of Fu et al. [29] suggested that blockchain could be applied to the trading
oil and gas companies; studied the methods of intelligent, digital, and of product carbon emissions in the fashion apparel manufacturing in
transparent management of carbon emissions using intelligent IoT and dustry after setting a threshold, and verified the effectiveness of the
blockchain technology; and discussed the relevant technologies for system with a case study and a multi-criteria evaluation. Khaqqi et al.
reasonable planning and purchasing carbon allowances through long [30] presented a reputation-based emission-trading framework using
Fig. 1. Research progress on keywords of carbon emissions and IoT.

(January 1, 2012, to January 7, 2024)
3
blockchain technology. It incorporates blockchain technology to address thereby serving as a model for implementing P2P “neighborhood power
ETS management and fraud issues, while utilizing a reputation system in sales” and effectively tackling the issue of residents under electricity
a new approach to improve ETS efficacy. Li et al. [31] designed a novel monopolies lacking autonomy in selecting the most cost-effective power
and practical policy framework for the ETS-RT based on advanced supplier, there are presently no successful instances of integrating car
blockchain technology, including all related entities upstream, bon, blockchain, and IoT within the comprehensive carbon neutrality
midstream, and downstream of the road-transport sector. However, system (comprising emissions reduction project development, MRV,
these are all studies of allowance trading and do not involve offset certification, and the entire offsetting process).
mechanisms. From a policy perspective, blockchain technology is Consequently, to expand the application of solar power, developing a
considered a significant change in next-generation communication reliable real-time system is crucial. Such a system would allow sellers to
technology [32]. The United Nations Framework Convention on Climate monitor their carbon emissions in real time and validate them as CC.
Change encourages the use of this technology to track and report Moreover, it guarantees that buyers obtain trustworthy carbon emis
emissions reductions [33]. With regard to Chinese policy, President Xi sions reduction quotas. In cases in which emission reduction efforts
Jinping emphasized [34,35] the importance of blockchain as a break cannot be validated as quota reductions, it is paramount for emission
through in core technology for independent innovation. Blockchain is reduction entities to incorporate IoT technology to create real-time
currently gaining social attention, and the blockchain industry will emission reduction models. This approach would streamline the quan
usher in an important period of policy opportunities [36]. tification and validation of emission reductions, thus enabling the
Several scholars have explored the joint application of the IoT and realization of emission reduction benefits.
blockchain in carbon accounting and trading. Blockchain can address Therefore,
data insecurity in the IoT data collection process [37]. With the
continuous research on integrating the IoT and blockchain, the combi 1) The development of real-time emission reduction methodologies
nation of green IoT and blockchain has entered public view [38–40]. Li based on the IoT is essential. This enables continuous monitoring of
et al. [41] proposed an efficient real-time MRV + Offset (O) mechanism carbon emissions from enterprises, products, individuals, and other
based on the IoT and blockchain technology. This mechanism includes a entities, thereby improving the effectiveness of carbon neutrality
calculation model for specific distributed carbon reduction scenarios, efforts.
and real-time M, RV, and O systems, enabling individuals to reliably 2) The accuracy and security of the data are paramount, particularly
declare their distributed carbon abatement behavior in real time. The when utilizing blockchain technology muss be ensured.
effectiveness of the system was validated through a case study of 20,000 3) In cases where emission reduction actions do not meet the criteria for
driving records in selected distributed carbon-reduction scenarios (bat carbon emission reduction certification, emission reduction entities
tery and hybrid electric vehicles [EVs]) in Shanghai. Hao et al. [22] or commercial entities involved in such actions can establish their
constructed a blockchain-based carbon-footprint traceability model for own commercial ecosystems. This allows them to convert their ef
chips. A traceability system was developed on a Hyperledger fabric forts into CC, thereby providing economic compensation and
platform. The main purpose of this system was to record carbon emis ecological benefits.
sions and device locations (GPS technology was introduced in smart
contracts). Woo et al. [42] proposed a new blockchain digital MRV ar The contributions of this study are outlined below:
chitecture for the energy performance of existing buildings. Daniel-
George et al. [35] introduced a Smart Home Electric Energy Data 1) This study introduces an architecture, Modelx+MRV + O, designed
Acquisition Platform based on the IoT and blockchain. Miraz [43] pro for integration with the current global carbon reduction market. This
posed that IoT blockchains adopted at lower measurement levels, architecture incorporates IoT and blockchain technologies to achieve
commonly referred to as blockchain IoT or blockchain of things (BCoT), real-time credibility within an MRV system in this domain.
represent the integration of blockchain and IoT technologies, both of 2) This study conducts case studies focusing on innovative emission
which can mutually benefit. Sadawi et al. [44] outlined the current is reduction scenarios. For instance, it presents a case study on a
sues with the carbon trading system and proposed a comprehensive carbon-reduction measurement model for returnable packaging and
three-stage hierarchical blockchain framework that employs smart PV scenarios, demonstrating the effectiveness of the proposed
contracts in the BCoT to ensure integrity in the system and reach a fair architecture.
trade status that favors the environment over cost reductions and prof 3) This study presents an ecosystem that integrates the credit systems.
iting of companies, which also mentioned the use of devices combining This ecosystem involves government regulatory agencies, emission
IoT and blockchain. Effah et al. [45] proposed a blockchain and IoT- reduction entities, and third-party auditing organizations.
based framework on the FISCO BCOS platform to monitor enterprise
carbon emissions coupled with CC trading using a smart contract. The paper is structured as follows:
Vyjayanthi et al. [46] proposed a novel framework for monitoring solar Section 1 provides an overview of the issues that exist in the current
photovoltaic (PV)-based EV community charging stations and load- global carbon reduction market and MRV systems. We also discuss the
frequency regulation using blockchain technology. In addition, they application of IoT and blockchain technologies in the field of carbon
proposed a Smart Energy Management Controller that optimally de neutrality by scholars and industry professionals.
termines the EV charge and discharge operations by considering the Section 2 introduces innovative mechanisms proposed in the study.
present capacity, grid frequency, and solar PV availability. Muzumdar Section 3 illustrates the development of real-time carbon reduction
et al. [47] proposed a trustworthy and incentivized emission trading models using returnable packaging.
system using Hyperledger (permissioned blockchain) and smart con Section 4 presents case studies focusing on common CDM projects.
tracts. This ensures transparent trading of CC with a better MRV. It Section 5 concludes with the conclusion and discussions derived
applies three smart contracts, namely CC selling, buying, and trading, to from the study.
achieve reliable and secure energy trading transactions with improved
trust. The gold standard [48] states that blockchain digital MRV has the 2. Theory
potential in that a digital MRV collects data automatically using a hash
function in a safe, secure, and accurate manner. The global real-time carbon neutrality system comprises two parts: a
Despite Huawei’s engagement in the FusionSolar project, which real-time carbon neutrality system on the left (Fig. 2a) and a real-time
utilizes a consortium blockchain and has achieved pilot traceability of carbon offset system on the right (Fig. 2b).
clean energy generation data and a “peer-to-peer” trading system [17], Within the global carbon market, emission-reduction projects
4
Fig. 2. Double-line global real-time carbon neutrality system.
certified for CC are eligible for offsetting by various entities, including exchange. Carbon emissions and emission reduction quantification at
businesses, activities, products, and individuals. These entities can form the emission and reduction ends were conducted using IoT methods with
a Consortium Blockchain [49] to safeguard the relative security of the the promotion of blockchain for on-chain storage.
main network environment within the chain. Alternatively, they may As an example of carbon emission offsetting and neutralization
establish Public Blockchains to incentivize additional emission- within a company, the real-time Modelx+MRV + O framework, which
reduction verification and certification agencies to participate (Fig. 2a). uses IoT and blockchain technology (Fig. 3), comprises five principal
Emission reduction projects that cannot qualify for CC quotas can components: the Modelx section, and real-time M, R, V, and O systems.
develop their own emissions reduction credit ecosystems (Fig. 2b). The Modelx is based on the CDM methodology which has been widely
Emission reduction credits can circulate among various commercial applied all over the world [50].
ecosystem partners within alliance chains, thereby facilitating value The ER of the Modelx is as follows:
Fig. 3. Real-time Modelx+MRV + O framework based on the IoT and blockchain technology.
5
ER = BE − PE (1) content may encompass emission reduction models, dynamic parame

ters, dynamic emission reductions, verified dynamic emission re
where: ductions, offset status of verified dynamic emission reductions, and
ER is the real-time carbon emission reduction of the project (tCO2e). corresponding hash values.
BE is the real-time carbon emissions of the project under the baseline It is necessary to determine whether blockchain technology is
scenario (tCO2e). needed: it is crucial to evaluate whether blockchain technology is war
PE is the real-time carbon emissions of the project under the project ranted based on the scenario’s application environment and economic
scenario (tCO2e). factors. If deemed necessary, considerations include determining the
The Modelx represents a generic model which applies to any certain data to be recorded on the blockchain and configuring permissions for
carbon abatement behavior, where x indicates different scenarios that various behaviors.
result in carbon reductions, and the emissions reductions can be calcu
lated based on the parameter collected by IoT sensor. In a certain sce 3. Case study 1: Modelx for returnable packaging
nario, Modelx consists of formula (1) and accounting formulas of its PE
and BE. This ensures that the system is versatile and can be applied to a In recent years, the express delivery industry has experienced rapid
wide range of applications. In this study, we select two certain scenarios, worldwide growth. By 2022, the global parcel shipping volume will
one is the returnable package usage (see section 3), the other is the exceed 161 billion parcels. In less than six years, this volume is expected
current CDM methodology (we take the PV power generation as an to reach 256 billion parcels by 2027, at a compound annual growth rate
example, see section 4). By doing so, we provide the showcase of how to of 59% [51]. Fig. 4 shows that the annual volume of express deliveries in
make a carbon reduction model account at the real-time level with China surges from 5.0 billion items in 2018 to 11.06 billion items in
credibility. In any other cases, the carbon reduction methodology 2023. Notably, the packaging process contributes to 30% of the total
developer needs to develop a new IoT and blockchain based carbon carbon emissions, and this proportion has been steadily increasing
reduction accounting model of PE and BE by themselves based on the alongside the expansion of the express delivery sector [52]. In Germany,
formula (1). between 2006 and 2020, the revenue of Deutsche Post fluctuated around
Modelx calculates the emissions reduction (which is ER) for an 60 billion euros, generating 66.8 billion euros in 2020 [51]. According
abatement behavior with a lower carbon emission in PE, comparing with to FedEx, an international express delivery enterprise, revenue increased
a regular behavior as a baseline scenario in BE. Therefore, ensuring from 1 billion USD in 1983 to 90 billion USD by 2022 [53]. Therefore,
comparability of the BE and PE scenarios is crucial. In case 1, the reducing the overall carbon emissions of the express delivery industry
comparability is the same distance transportation of same volume goods. from a packaging perspective is of the utmost importance.
In case 2, the comparability is the same electricity amount used for the Research on reverse logistics and returnable packaging has demon
consumers. strated the feasibility of emission reduction through the use of return
In a real-time M system, during the modeling process, it is imperative able packaging. Silva et al. [54] demonstrated that a returnable
to identify parameters that can be measured in real time during project packaging model consumes 18% less material than a disposable pack
operations (although some methodologies within the CDM may identify aging model, thereby reducing costs. Furthermore, it has a lower envi
these parameters, they do not necessarily guarantee real-time mea ronmental impact than disposable packaging. Katephap and Limnararat
surement). All of the parameters, both dynamic and fixed, should be [55] demonstrated that a multi-trip reverse logistics arrangement was
classified and described accordingly. Most parameters in the baseline the most operationally and environmentally viable, with the largest total
scenario (BE) are fixed, necessitating the identification of an appropriate packaging cost reduction and packaging waste reduction of 61% and
baseline scenario. Conversely, in the project scenario (PE), some pa 68%, respectively, relative to disposable packaging. However, both of
rameters are dynamic and require the utilization of IoT + MRV tech these studies lacked real-time research, and the environmental impact
nology for real-time monitoring. For example, in the context of emission assessments were incomplete. An innovative ecological packaging and
reduction in EVs, the power consumption of EVs is considered a dynamic transportation unit was developed by Martínez-Sala et al. [56], which
parameter. Once the parameters have been determined, the sensors for integrated data streams into information systems using Radio-Frequency
data collection within the sensing layer and the protocols for data Identification (RFID) tags, thus converting the transportation unit into
transmission within the transmission layer should be selected. an intelligent product platform. Despite showcasing the utility of rele
The real-time R system comprises three layers: data, application, and vant information technology in logistics information management, this
presentation. The data layer encompasses data cleaning, verification,
and processing, and the application layer computes real-time emission
reductions using Modelx calculations. The presentation layer primarily
exhibits the output data.
A real-time V system involves packaging the monitoring parameters
or emission reductions and uploading them to the blockchain.
The real-time O system encompasses offsetting the real-time verified
emission reduction. Notably, emission reductions from activities not
covered by existing emission reduction markets, once verified, can be
offset within one’s own ecosystem and by external merchants recog
nized by themselves for CC.
The allocation of personnel throughout the process is illustrated in
Fig. 3. Third-party organizations are involved in the model verification
and final issuance stages. During the real-time monitoring and reporting
of substantial data, verification personnel from third-party organiza
tions only need to conduct sampling according to their predefined rules
to ensure data accuracy.
In the final visualization stage, demos are tailored to pivotal sce
narios and indicators to facilitate efficient project management. This
involves selecting the appropriate platform (PC, mobile, or other de Fig. 4. Total annual volume of express deliveries in China and corresponding
vices, such as in-car applications) and content for external display. The carbon emissions at packaging stages (2018–2022).
6
study lacks an analysis of the potential environmental benefits. Vörösk 3.2. Establishment of baseline and project scenarios
[57] used three fuzzy signatures connected by fuzzy rules to.
model packaging decisions, which facilitates the evaluation of The baseline scenario refers to the level of greenhouse gas emissions
packaging design processes from a broader cost-based perspective and of an individual, organization, or product without carbon reduction
demonstrates the economic viability of returnable packaging. Addi measures. The accounting scope in this scenario includes the carbon
tionally, Zimmermann and Bliklen [58] compared the carbon dioxide footprint of one unit of non-returnable packaging (function unit),
emissions of two returnable transport packaging options with disposable involving various stages such as raw material acquisition and trans
low-density polyethylene bags, highlighting the environmental advan portation, packaging material and transportation, production
tages offered by returnable bags after multiple cycles. However, manufacturing, transportation, and consumption. Conversely, the proj
research on the development of real-time emission reduction models for ect scenario refers to the situation after implementing carbon reduction
returnable packaging is limited. measures, also known as the scenario of emission reduction projects. In
China has also paid considerable attention to returnable packaging. this case, this specifically pertains to the carbon footprint of one unit of
By the end of September 2023, >90% of the parcels in China’s e-com returnable packaging (a functional unit), as detailed in Table 2. The
merce sector were no longer double-packaged, with >800 million par effectiveness of emission reduction measures can be evaluated by
cels shipped using returnable packaging. Furthermore, the nation comparing the data between the baseline and project scenarios, and the
advocates the adoption of lightweight, durable, reusable, and easily emission reduction effects after implementing these measures can be
recyclable packaging [59]. On December 5, 2023, the NDRC released the quantified. The functionality of the two boxes in the baseline and project
Action Plan for Promoting the Green Transformation of Express Delivery scenarios needs to be the same to ensure the comparability, and in this
Packaging with the objective of establishing a comprehensive system of case, the definition of the functionality in two scenarios is set as -
green packaging standards for express delivery by the end of 2025. The transporting the same volume of the products within the same distance
plan also aims to achieve a 10% utilization rate of returnable express by returnable packaging and non-returnable packaging by cargo.
delivery packaging for intra-city deliveries [60]. Consequently, research
on reducing carbon emissions by utilizing returnable packaging is of
paramount importance. 3.3. Modeling
3.1. The flowchart of the real-time Modelx In this case, the emissions reduction of returnable boxes compared
with conventional boxes under equivalent transportation efficiency can
The development process of the real-time carbon emission reduction be calculated using Formula (1).
model methodology is illustrated in Fig. 5, which includes a literature The total baseline scenario emissions and project scenario emissions
review, expert consultation, methodology development, and field can be obtained by aggregating the emission of all quantities of all types
research. Regarding the development of the model, this case study of returnable packaging, as shown in Eq. (2) and (3).
focused on returnable packaging and integrated the principles of the m ∑
∑ n
CDM methodology with the theoretical framework of Life Cycle BE = BEi,j (2)
Assessment. The former emphasizes defining comparison scenarios for i=1 j=1
emission reduction, whereas the latter incorporates the carbon emis

m ∑
∑ n
sions of returnable containers throughout their entire lifecycle, PE = PEi,j (3)
including the stages of raw material acquisition, packaging material i=1 j=1
production, manufacturing, and operation.
Under the principles of the CDM methodology, it is necessary to Where:
establish baseline and project scenarios. i——type i returnable packaging used in the project scenario;
j——the j-th returnable packaging of type i;
m—— the total number of types of returnable packaging;
n—— the total number of returnable containers in a specific type;
Fig. 5. Real-time methodology development process (using returnable boxes as an example).
7
Table 2
Scope of Accounting.
Baseline Scenario Project Scenario
Acquisition and transportation of Emissions from raw material acquisition and transportation generated Emissions from raw material acquisition and transportation
raw materials by non-returnable packaging under real-time turnover quantities and generated by returnable packaging under real-time turnover
turnover frequencies quantities and frequencies
Packaging material for Emissions from packaging material manufacturing and transportation Emissions from packaging material manufacturing and
packaging and its methods, transportation distance, and associated energy consumption transportation methods, transportation distance, and associated
transportation generated by non-returnable packaging energy consumption generated by returnable packaging
Consumption of primary energy Consumption of primary energy and water resources in the Consumption of primary energy and water resources in the
resources in production production process of non-returnable returnable packaging production process of returnable returnable packaging
manufacturing
Consumption of the purchased In-house consumption of purchased secondary energy, such as In-house consumption ofpurchased secondary energy, such as
secondary energy electricity, heat (hot water and steam), cooling, and compressed air, electricity, heat (hot water and steam), cooling, and compressed air,
in the production process of non-returnable packaging in the production process of returnable packaging
Operations Emissions generated from energy consumption for recycling, transfer, Emissions generated from energy consumption for recycling,
and cleaning of non-returnable packaging, and material consumption transfer, and cleaning of returnable packaging, and material
for cleaning consumption for cleaning
Transshipment Transportation emissions generated during the operation of non- Transportation emissions generated during the operation of
returnable packaging returnable packaging
End-of-life transportation End-of-life transport processes for non-returnable packaging End-of-life transport processes for returnable packaging
Waste treatment for end-of-life Carbon emissions during end-of-life waste treatment of non- Carbon emissions during end-of-life waste treatment of returnable
treatment returnable recycling packaging when retired recycling packaging when retired
BEi,j ——the j-th returnable packaging of type i of the the real-time ADraw material transpotation,iʹ,aʹ ——Transport distance for raw materials
carbon emissions of the project under the baseline scenario, see 3.3.1; aʹ of 1PCS non-returnable packaging iʹ;
PEi,j ——the j-th returnable packaging of type i of the the real-time EFraw material transpotation,iʹ,aʹ ——Emission factors corresponding to
carbon emissions of the project under the project scenario, see 3.3.2. transportation mode of raw material aʹ;
bʹ——The bʹ − th type of packaging material for returnable pack
3.3.1. Baseline scenario emissions modeling aging;
[ ’ Bʹ——Total number of packaging materials for non-returnable
∑A
/
BEi,j = Vi Vi’ ×
(
ADraw material,i’ ,a’ × EFraw material,i’ ,a’ packaging;
a’ =1 ADpackaging material,iʹ,bʹ —— The mass of packaging material b’ used in
)
+ ADraw material transpotation,i’ ,a’ × EFraw material transpotation,i’ ,a’ 1PCS non-returnable packaging iʹ;
B’
EFpackaging material,iʹ,bʹ ——Emission factors corresponding to packaging
∑ (
+ ADpackaging material,i’ ,b’ × EFpackaging material,i’ ,b’ material bʹ;
b’ =1 ADpackaging material transpotation,iʹ,bʹ ——Distance of transport of 1PCS
)
+ ADpackaging material transpotation,i’ ,b’ × EFpackaging material transpotation,i’ ,b’ packaging material bʹ;
∑C’ ( ) EFpackaging material transpotation,iʹ,bʹ ——Emission factors corresponding to
+ ADproduction,i’ ,c’ × EFproduction,i’ ,c’
c’ =1 transportation mode of raw material bʹ;
∑D’ ( )
+ ADsecondary energy,i’ ,d’ + EFsecondary energy,i’ ,d’ cʹ——The cʹ − th primary energy and resource used in the production
d’ =1
of non-returnable packaging;
E’
∑
+
(
ADoperation input,i’ ,e’ × EFoperation input,i’ ,e’
) Cʹ——Total primary energy and resource used in the production
e’ =1 process of non-returnable packaging;
+ ADtranshipment− × EFtranshipment− ADproduction,iʹ,cʹ —Primary energy consumption cʹused in 1PCS non-
cargo fuel,i’ cargo fuel,i’
returnable packaging iʹ;
+ ADend− of− life treatment transport,i’ × EFend− of− life treatment transport,i’
] EFproduction,iʹ,cʹ ——Emission factor corresponding to the primary en
+ ADdiscarded packaging,i’ × EFwaste treatment,i’
/
(Li’ × Fi’ ) × Trealtime,i,j ergy consumption cʹ;
dʹ——The consumption of the dʹ-th type of purchased secondary
(4) energy for returnable packaging ;
Dʹ——Total number of secondary energy types for non-returnable
where: packaging;
iʹ——Non-returnable packaging in the baseline scenario that has the ADsecondary energy,iʹ,dʹ ——Secondary Energy dʹ consumed in 1PCS pro
same storage function as the returnable packaging used in the project duction of non-returnable packaging iʹ;
scenario, for example steel drums, plastic drums, and corrugated boxes, EFsecondary energy,iʹ,dʹ ——Emission factor corresponding to secondary
while their volume may not equal to the returnable packaging; energy dʹ;
Vi ——Volume of 1PCS returnable packaging; eʹ——Energy consumption and material input (e.g. Water/disinfec
Viʹ ——Volume of 1PCS non-returnable packaging; tant for cleaning) during operation of non-returnable packaging;
aʹ——The aʹ-th type of raw material used in non-returnable pack Eʹ——Total energy consumption and material input (e.g. Water/
aging; disinfectant for cleaning) during the operation of non-returnable pack
Aʹ——The total number of raw materials used in non-returnable aging;
packaging; ADoperation,iʹ,eʹ ——Energy consumption and material input (e.g.
ADraw material,iʹ,aʹ ——The mass of raw material aʹ used in 1PCS of non- Water/disinfectant for cleaning) for 1PCS non-returnable packaging iʹ
returnable packaging iʹ; during the operation;
EFraw material,iʹ,aʹ ——Emission factors corresponding to raw material EFoperation,iʹ,eʹ ——The emission factor corresponding to energy con
aʹ; sumption and material input eʹ;
8
ADtranshipment− cargo fuel,iʹ ——The transportation distance for the EFpackaging material transpotation,i,b ——Emission factors corresponding to
transshipment of 1PCS non-returnable packaging iʹ; transportation mode of raw material b;
EFtranshipment− cargo fuel,iʹ ——The emission factor corresponding to c——The consumption of the c-th type of primary energy and
transportation mode of 1PCS non-returnable packaging iʹ; resource for returnable packaging;
ADend− of− life treatment transport,iʹ ——The transportation distance of 1PCS C——Total consumption of primary energy and resource during the
non-returnable packaging iʹ for end-of-life treatment; production of returnable packaging;
EFend− of− life treatment transport,iʹ ——The emission factor corresponding to ADproduction,i,c ——Primary energy consumption c used in 1PCS of
the transportation mode of end-of-life treatment for non-returnable returnable packaging i;
packaging iʹ; EFproduction,i,c ——Emission factors corresponding to the primary en
ADdiscarded packaging,iʹ ——The mass of the discarded non-returnable ergy consumption c;
packaging iʹ; d——The consumption of the d-th type of purchased secondary en
EFwaste treatment,iʹ ——The emission factors corresponding to the waste ergy for returnable packaging ;
treatment for 1PCS discarded non-returnable packaging iʹ; D——Total consumption of purchased secondary energy for return
Liʹ —— The design lifespan of the iʹ-th type of non-returnable pack able packaging;
aging (in years), if less than one year, it is considered as one year; ADsecondary energy,i,d ——The energy consumption of secondary energy
Fiʹ —— The annual average turnover times of the iʹ-th type of non- source d for producing 1PCS returnable packaging i;
returnable packaging (times per year); EFsecondary energy,i,d ——The emission factor corresponding to second
Trealtime,i,j ——The real-time turnover count (times) of the j-th PCS for ary energy source d;
the i-th type of returnable packaging.1 e——Energy consumption and material input (e.g. Water/disinfec
tant for cleaning) during the operation of returnable packaging;
3.3.2. Project scenario emissions modeling E——Total energy consumption and material input (e.g. Water/
[ disinfectant for cleaning) during the operation of returnable packaging;
A
∑ ( ADoperation input,i,e ——Material input (e.g. Water/disinfectant for
PEi,j = ADraw material,i,a × EFraw material,i,a + ADraw material transpotation,i,a
cleaning) for 1PCS production of non-returnable packaging i during the
a=1
B
operation;
) ∑ (
× EFraw material transpotation,i,a + ADpackaging material,i,b EFoperation input,i,e ——The emission factors corresponding to energy
b=1 consumption and material input e;
× EFpackaging material,i,b + ADpackaging material transpotation,i,b ADtranshipment− cargo fuel,i ——The transportation distance for trans
) ∑C ( shipment of 1PCS non-returnable packaging i;
× EFpackaging material transpotation,i,b + ADproduction,i,c
c=1 EFtranshipment− cargo fuel,i ——The emission factor corresponding to
) ∑D ( )
× EFproduction,i,c + ADsecondary energy,i,d + EFsecondary energy,i,d transportation mode of 1PCS non-returnable packaging i;
d=1
E
ADend− of− life treatment transport,i ——The transportation distance of 1PCS
∑ ( )
+ ADoperation input,i,e × EFoperation input,i,e + ADtranshipment cargo− fuel,i returnable packaging i for end-of-life treatment;
e=1 EFend− of− life treatment transport,i ——The emission factors corresponding
× EFtranshipment cargo− fuel,i + ADend− of− life treatment transport,i to the transportation mode of end-of-life treatment for non-returnable
× EFend− of− life treatment transport,i + ADdiscarded packaging,i packaging i;
] ADdiscarded packaging,i ——The mass of the discarded non-returnable
/
× EFwaste treatment,i (Li × Fi ) × Trealtime,i,j packaging i;
EFwaste treatment,i ——The emission factors corresponding to the waste
(5) treatment for 1PCS discarded non-returnable packaging i;
Li ——The designed lifespan of the i-th type of returnable packaging
where: (in years), if less than one year, it is considered as one year;
a——The a-th type of raw material for returnable packaging; Fi ——The average annual turnover times of the i-th type of return
A——Total number of raw materials for returnable packaging; able packaging (times per year);
ADraw material,i,a ——The mass of raw material a used in 1PCS return Trealtime,i,j ——The real-time turnover count (times) of the j-th PCS for
able packaging i; the i-th type of returnable packaging.
EFraw material,i,a ——Emission factors corresponding to the raw mate In case 1, the formula used to account BE and PE are from formula (2)
rial a; to formula (5), at this point, formula (1) to formula (5) consists of
ADraw material transpotation,i,a ——Transportation distance for raw mate Modelx.
rial a of 1PCS returnable packaging i; Two scenarios demonstrating formula (2) to formula (5) are shown in
EFraw material transpotation,i,a ——Emission factors corresponding to Fig.A.1 in Appendix A.
transportation mode of raw material a;
b——The b-th type of packaging material for returnable packaging; 3.4. Dynamic and Fixed Parameters and Their Monitoring Methods
B——Total number of packaging materials for returnable packaging;
ADpackaging material,i,b ——The mass of packaging material b used in 3.4.1. Dynamic parameters and monitoring methods
1PCS returnable packaging i; The dynamic parameters and monitoring methods are detailed in
EFpackaging material,i,b ——Emission factors corresponding to packaging Table 3.
material b; In practical business operations, IoT devices can perform sensing (i.
ADpackaging material transpotation,i,b ——Distance of transport of 1PCS e., sensors convert physical phenomena into electronic signals) and
packaging material b; feedback functions. Using IoT technology, each node in the supply
chain, from acquisition to consumption, can be meticulously docu
mented and authenticated. Subsequently, commonly utilized IoT tech
1 nologies can track the frequency of various types of boxes returning to
If Trealtime,i,j >Liʹ × Fiʹ ,the non-returnable packaging is retired in reality, while
the same address [61].
another set of the non-returnable packaging can be used endlessly since it is in a
hypothetical scenario.
9
Table 3
Dynamic Parameters Based on IoT Technology and Their Monitoring Methods.
Data/ Unit Description Source of the data used Measurement methods and procedures Monitoring/
parameters recording
frequency:
1. Install communication transmission chips on smart

returnable packaging. After assigning a unique digital ID to
The real-time turnover count (in Returnable Packaging Data each smart returnable packaging box, the platform monitors
Real-time
Trealtime,i,j Time times) of the j-th PCS of the i-th Monitoring and the turnover frequency in real-time and records the date of use.
monitoring
type of returnable packaging. Management Platform 2. Users independently report the turnover frequency and
record the date of use when renting smart returnable
packaging through the platform.
1) GPS: Using GPS modules, the position information of returnable As shown in Fig. 6, Internet lines are used to connect devices to IoT
boxes can be accurately recorded. service networks. The 4G/5G is a commonly used mobile technology.
2) RFID: RFID tags can be attached to returnable boxes, and RFID HTTPS or MQTT are common protocols. In this study, IoT services serve
readers can scan different locations or nodes to record the position two purposes: receiving data from devices and processing, storing, and
information of the boxes. analyzing the data [62].
3) Near Field Communication (NFC): NFC tags can be attached to
returnable boxes and NFC readers can scan different locations or 3.4.2. Fixed parameters and their acquisition methods
nodes to record the position information of the boxes. The fixed parameters required for the analysis in this case study are
listed in Table 4 below.
Fig. 6. Real-time design of IoT technology and cloud service platform for tracking carbon-related energy consumption (using returnable packaging as an example).
10
Table 4
Fixed Parameters and Their Acquisition Methods.
Data/parameters Unit Data acquisition methods
By comparing the scenario with the baseline scenario, you can determine the volume of non-returnable packaging corresponding to the
Viʹ m3
scenario in the baseline scenario.
Li Year Product specification sheet or research, taking 1 if <1.
Times/
Fi Survey data from the enterprise
year
Select the corresponding values for all raw materials required for non-manufactured returnable packaging iʹ. When there are multiple
ADraw material,iʹ ,aʹ kg/PCS
raw materials, each must be calculated separately and then summarized.
EFraw material,iʹ,aʹ tCO2e/kg Select the corresponding carbon emission factor for all corresponding raw materials.
ADraw material transpotation,iʹ,aʹ km/PCS Select the corresponding value based on the distance traveled for non-transport returnable packaging iʹ.
tCO2e/
EFraw material transpotation,iʹ ,aʹ Based on the corresponding transportation mode, select the corresponding carbon emission factor.
km
Select the corresponding value based on the materials required for manufacturing non-smart packaging iʹ. When there are multiple
ADpackaging material,iʹ ,bʹ kg/PCS
types of materials, each must be calculated separately.
EFpackaging material,iʹ ,bʹ tCO2e/kg Select the corresponding carbon emission factor based on the chosen packaging material.
ADpackaging material transpotation,iʹ ,bʹ km/PCS Select the corresponding value based on the distance traveled for transporting packaging material.
tCO2e/
EFpackaging material transpotation,iʹ,bʹ Select the corresponding carbon emission factor based on the chosen transportation mode.
km
ADproduction,iʹ ,cʹ kg/PCS Select the corresponding value based on the primary energy consumed in manufacturing non-smart packaging iʹ.
EFproduction,iʹ ,cʹ tCO2e/kg Select the corresponding carbon emission factor based on the type of primary energy consumed.
ADsecondary energy,iʹ ,dʹ kg/PCS Select the corresponding value based on the purchased secondary energy consumed in manufacturing non-smart packaging iʹ.
EFsecondary energy,iʹ,dʹ tCO2e/kg Select the corresponding carbon emission factor based on the type of secondary energy.
ADoperation,iʹ,eʹ kg/PCS Calculate based on the data consumption during the operation process.
EFoperation,iʹ ,eʹ tCO2e/kg Select the corresponding value based on the chosen type of energy resource.
ADtranshipment− cargo fuel,iʹ km/PCS Select the corresponding value based on the distance traveled for transporting recyclables.
tCO2e/
EFtranshipment− cargo fuel,iʹ Select the corresponding value based on the chosen transportation mode.
km
ADend− of− life transport,iʹ km/PCS Select the corresponding value based on the distance traveled for transporting end-of-life packaging for disposal.
tCO2e/
EFend− of− life transport,iʹ Select the corresponding value based on the chosen transportation mode.
km
ADdiscarded packaging,iʹ kg/PCS Select the corresponding value based on the treatment of non-returnable packaging.
EFwaste treatment,iʹ tCO2e/kg Select the corresponding value based on the chosen treatment method.
Select the corresponding value based on the materials required for manufacturing smart packaging i. When there are multiple types of
ADraw material,i,a kg/PCS
materials, each must be calculated separately.
EFraw material,i,a tCO2e/kg Select the corresponding value based on all corresponding materials.
ADraw material transpotation,i,a km/PCS Select the corresponding value based on the distance traveled for transporting smart packaging i.
tCO2e/
EFraw material transpotation,i,a Select the corresponding value based on the transportation mode.
km
ADpackaging material,i,b kg/PCS Select the corresponding value based on all the materials required for manufacturing smart packaging i.
EFpackaging material,i,b tCO2e/kg Select the corresponding value based on the chosen packaging material.
ADpackaging material transpotation,i,b km/PCS Select the corresponding value based on the distance traveled for transporting packaging material.
tCO2e/
EFpackaging material transpotation,i,b Select the corresponding value based on the chosen transportation mode.
km
ADproduction,i,c kg/PCS Select the corresponding value based on all the materials required for manufacturing smart packaging i.
EFproduction,i,c tCO2e/kg Select the corresponding value based on all the corresponding materials.
ADsecondary energy,i,d kg/PCS Select the corresponding value based on the purchased energy consumed in manufacturing returnable packaging i.
EFsecondary energy,i,d tCO2e/kg Select the corresponding value based on the chosen type of purchased secondary energy.
ADoperation input,i,e kg/PCS Calculate based on the data consumption during the operation process.
EFoperation input,i,e tCO2e/kg Select the corresponding value based on the chosen type of energy resource.
ADtranshipment− cargo fuel,i km/PCS Select the corresponding value based on the distance traveled for transporting recyclables.
tCO2e/
EFtranshipment− cargo fuel,i Select the corresponding value based on the chosen transportation mode.
km
ADend− of− life transport,i km/PCS Select the corresponding value based on the distance traveled for transporting end-of-life packaging for disposal.
tCO2e/
EFend− of− life transport,i Select the corresponding value based on the chosen transportation mode.
km
ADdiscarded packaging,i kg/PCS Select the corresponding value based on the treatment of the returnable packaging.
EFwaste treatment,i tCO2e/kg Select the corresponding value based on the chosen treatment method.
Vi m3 Refer to the product manual.
Li Year Refer to the product quality manual.
Times/
Fi Estimate based on historical data from the smart packaging data monitoring and management platform.
year
3.4.3. Dynamic parameters and fixed parameters in reality required to be collected at each step. Notably, packaging recycling re
The full flow chart of the returnable packaging operation [63] quires the use of IoT technology to record the real-time turnover count.
combined with its whole life circle from the factory production to the The emission factors can be investigated the emission factor datasets,
end of life is shown in Fig. 7, which illustrates the specific cyclical steps the local standards and so on. The emission factors can be investigated
of returnable packaging and the activity data of fixed parameters using emission factor datasets, local standards, and other sources.
11
Fig. 7. The monitored parameter in each step of the returnable packaging.
3.5. Design of project management platform examined. Subsequently, the necessity for employing on-chain func
tionalities based on specific requirements must be determined. If on-
The main functions of carbon data statistics and management plat chain operations are deemed essential, encryption of IoT chips is
forms include carbon data collection, classification management, model advised.
management, carbon data analysis, export, and personnel permission In the selection of a blockchain platform, it is important to note that
management. different blockchains have varying carbon emission values. Some
exhibit lower emissions, particularly in comparison to proof-of-work
1) Collect carbon data in which dynamic traceable parameters are algorithms. For instance [64], the Practical Byzantine Fault Tolerance,
assessed by employing an IoT methodology, whereas manually filled Ripple, and Stellar algorithms are known for their relatively low energy
forms are used for other fixed parameters. The dynamic parameters consumption and reduced CO2 emissions into the environment.
are transmitted in real time via HTTPS or MQTT protocols utilizing Using the aforementioned procedures, it is feasible to establish real-
4G/5G IoT chips. time measurements, tracking, quantification, and certification of emis
2) Classifying carbon data featuring separate front-end and back-end sion reductions pertaining to this mitigation effort. The subsequent stage
components is utilized to build the management system. The front- involves selecting a pathway for carbon neutrality, as illustrated in
end web management is created using the React framework, Fig. 2.
whereas the back-end services are organized following the Spring
Cloud microservice architecture. 3.7. Implementation procedures of the MRV + O system
3) Manage models, including adding, deleting, updating and searching
function. The implementation procedures of M step, R step, V step and O step
4) Choose to export and analyze the results of the monitoring param in blockchain are shown in Table 5. The carbon emission reductions can
eters and emission reductions of carbon data from the web/software/ be recorded at real time based on the collected real-time turnover count.
mobile applet. As for the blockchain deposit, the users can package and upload the
5) Allocate management permissions for the different individuals in monitored parameters or emission reductions to the blockchain at their
Fig. 3 based on specific requirements. desired frequency, for example every hour, day, week or even longer.
Based on the aforementioned steps, real-time measurement,
3.6. Adoption of blockchain technology tracking, and quantification of emission reduction actions associated
with returnable packaging can be implemented, significantly enhancing
When considering the chosen blockchain type and its respective the efficiency of the carbon emission MRV.
application scenarios, the volume of on-chain parameters and associated
costs, which vary among different blockchain platforms, should be
12
4. Case study 2: Modelx for the current selected CDM

methodology
Project owners offset the carbon reduction by
they choose line 1, the regulators will verify

line 1 or line 2 with the credit demander. If
4.1. Modeling
the validity of the carbon credit.

The objective of existing carbon emission reduction models is to
improve their real-time capabilities by integrating IoT technology,
where feasible. For example, a commonly employed approach within
the CDM is a calculation model for carbon reduction in PV power gen
eration [65]. Given that solar PV is crucial in China’s transition to a low-
carbon economy, the total installed solar PV capacity is expected to
reach 4800 GW by 2060 [66]. Moreover, solar PV is anticipated to
O step
exhibit greater stability in most land regions due to extensive decar

bonization efforts [67]. The widespread deployment of PV is projected
/
to yield additional income for residents in economically disadvantaged
The third-party verification agency spot inspects the results of M

step and R step in Baseline emissions and Project emissions, and
agencies verify the reduction result verified by the third-party

areas, offering co-benefits [68]. Consequently, this case study was
verify the result of the Emission reduction. The regulatory

selected because of its significant real-world implications.
For grid-connected PV power generation projects, most commonly
used scenarios (such as new PV power generation projects without
battery energy storage or expansion projects without battery energy
storage) can be described using the following model:
PE = 0 (6)
BE = E × EF (7)
where:
E is the monitored real time electricity consumption based on IoT
verification agency.
technology, kWh;
EF is the certain emission factor of the electricity, tCO2/kWh.
In case 2, the formula used to account BE and PE are from formula (6)
V step
to formula (7), at this point, formula (1), formula (6) and formula (7)
consists of Modelx. The design of the project management platforms and
/
the integration of blockchain technology are consistent with Sections 3.5

(from M step in project emissions) to account the real-
(from M step in project emissions) to account the real-
and 3.6. Using the procedures, it is feasible to establish real-time mea

chronologically and the dynamic/fixed parameters
chronologically and the dynamic/fixed parameters
surements, tracking, quantification, and certification of emission re

ductions pertaining to this mitigation effort. The subsequent stage
Project owner uses formula 4 and formula 2
Project owner uses formula 5 and formula 3
involves selecting a pathway for carbon neutrality, as illustrated in

time carbon emissions of project emissions
time carbon emissions of project emissions
Fig. 2.
Formula 1 is used by project owner
4.2. Implementation procedures of the MRV + O system
The implementation procedures of M step, R step, V step and O step

Implementation procedures of the real-time MRV + O in blockchain in Case 1.
in blockchain are shown in Table 6, which is similar to the imple

mentation procedures of case 1 as shown in Table 5.
Integrating the Model developed and the MRV + O system, the whole
system named as a Modelx + MRV + O system can achieve carbon
R step
neutrality at real time.
5. Discussion
collected by RFID tags (See Fig. 6) by project
collected by RFID tags (See Fig. 6) by project

2)Stationary monitoring of fixed parameters
2)Stationary monitoring of fixed parameters

(the parameter marked without ʹ) manually
manually (the parameter marked with ʹ) by
project owner, the acquisition methods are
by project owner, the acquisition methods

parameters in Table 3, which is Trealtime,i,j ,
parameters in Table 3, which isTrealtime,i,j ,
The system can handle a wider range of carbon reduction activities

1)Real-time monitoring of dynamic
1)Real-time monitoring of dynamic
beyond the presented scenarios, such as subway transportation, trav

eling by electric vehicles, residential low-carbon electricity usage,
traveling by shared bicycles, and using high-efficiency refrigerators.
are illustrated in Table 4.
illustrated in Table 4.
5.1. Subway transportation
In the subway transportation scenario,2 IoT technology measures

M step
subway mileage in real-time (a dynamic parameter), collected by sen

owner
owner
sors in Train Control and Management Systems (TCMS). By multiplying

/
reductions
emissions
emissions
Emission
Baseline
2
This case study concentrates on extracting essential parameters without
Project
Table 5
delving into detailed calculations. This approach is consistent throughout the

following cases.
13
Table 6
implementation procedures of the real-time MRV + O in blockchain in case 2.
M step R step V step O step
Project / / / /
emissions
Baseline 1)Real-time monitoring of / /
Formula 7 is
emissions dynamic parameters, which isE,
collected by smart meters by used by project
project owner owner
Emission / Formula 7 is The third-party verification agency spot inspects the Project owners offset the carbon reduction by line
reductions used by project results of M step and R step in Baseline emissions, and 1 or line 2 with the credit demander. If they
owner verify the result of the Emission reduction, regulatory choose line 1, the regulators will verify the
agencies verify the reduction result verified by the validity of the carbon credit.
third-party verification agency.
this dynamic parameter with per-kilometer energy consumption and GPS. Since cycling does not involve direct carbon emissions, PE is 0. In
emission factors of the energy, PE (the real-time carbon emissions of the this case, the baseline scenario is traveling the same distance by
project scenario) is calculated. The baseline scenario uses gasoline- gasoline-driven passenger vehicles as by riding bicycles. By multiplying
driven passenger vehicles traveling the same distance. Multiplying the fuel consumption of passenger vehicles with corresponding emission
fuel consumption of these vehicles with corresponding emission factors factors, BE can be calculated [71]. Using formula (1), the real-time
gives BE (the real-time carbon emissions of the baseline scenario) [69]. emission reduction of traveling by shared bicycles can be determined.
Formula (1) is used to determine the real-time emission reduction. This In this case, traveling by shared bicycles has replaced traveling by ve
calculation shows the emissions reduction achieved by traveling the hicles, achieving emission reductions. In this scenario, Modelx (x refers
same distance by subway instead of by vehicle. In this scenario, Modelx to traveling by shared bicycles in this scenario) consists of formula (1)
(x refers to subway transportation in this scenario) consists of formula and the calculation methods of PE and BE.
(1) and the calculation methods of PE and BE.
5.5. Using high-efficiency refrigerators
5.2. Traveling by electric vehicles
In the scenario of using high energy-efficiency refrigerators, IoT
In the traveling by electric vehicles scenario, IoT technology mea technology measures the electricity consumption of high-efficiency re
sures electric vehicle power consumption in real-time (a dynamic frigerators in real-time (dynamic parameter), collected by smart meters.
parameter) collected by battery management systems (BMS). PE is Multiplying the dynamic parameter with emission factors of the energy
determined by multiplying this parameter with the emission factors of consumption, PE can be calculated. In this case, the baseline scenario
the power. The baseline scenario involves gasoline-driven passenger involves using conventional refrigerators with a same lifespan. By
vehicles traveling the same distance. Multiplying the fuel consumption multiplying energy consumption of conventional refrigerators with
of these vehicles with corresponding emission factors provides BE. Using corresponding emission factors, BE can be calculated [72]. Formula (1)
formula (1) can calculate the real-time emission reduction for electric is used to account for the real-time emission reduction of energy-
vehicle travel [41]. This calculation demonstrates the emissions reduc efficient refrigerators. In this case, using high-efficiency refrigerators
tion achieved by using electric vehicles instead of gasoline vehicles for has replaced using conventional refrigerators, achieving emission re
the same travel distance. In this scenario, Modelx (x refers to traveling ductions. In this scenario, Modelx (x refers to using high-efficiency re
by electric vehicles in this scenario) consists of formula (1) and the frigerators in this scenario) consists of formula (1) and the calculation
calculation methods of PE and BE. methods of PE and BE.
Given the countless carbon reduction scenarios, it’s not feasible to
5.3. Residential low-carbon electricity usage analyze each one in detail due to space constraints. However, we are
confident that the Modelx system is effective in collecting real-time
In the residential low-carbon electricity usage scenario, IoT tech emission reduction data and increase transparency.
nology measures the residential electricity consumption in real-time Considering the economic costs associated with IoT and blockchain
(dynamic parameter), collected by smart meters. PE can be calculated technology, practical applications should be comprehensively evaluated
based on the dynamic parameter and emission factors of the electricity. case by case based on project size, regional factors, and feasibility.
In this case, the baseline scenario is last year’s electricity consumption Moreover, there are some CO2 emission sources are difficult to trace the
for the same household. By multiplying electricity consumption of last emissions, for example, CO2 generated from carbonate decomposition,
year with corresponding emission factors, BE can be calculated. Using where dynamic parameters are difficult to collect in real-time using IoT
formula (1), the real-time emission reduction for low-carbon electricity technology. Further research is needed on how to apply Modelx in such
usage can be determined [70]. In this case, the use of low-carbon elec cases.
tricity has replaced the original electricity consumption, achieving
emission reductions. In this scenario, Modelx (x refers to residential low- 6. Conclusion
carbon electricity usage in this scenario) consists of formula (1) and the
calculation methods of PE and BE. This study investigated real-time carbon neutrality architecture.
Although the earlier study has explored the real-time carbon offset
5.4. Traveling by shared bicycles mechanism, it has not explicitly proposed an entire picture with high
credibility and efficiency involving different stakeholders.
In the shared bicycle traveling scenario, IoT technology measures We proposed a Modelx+MRV+O system by addressing the impor
shared bicycle mileage in real-time (dynamic parameter), collected by tance of the real-time modeling of carbon reduction behaviors based on
14
the IoT, selected a strongly merging scenario, returnable package, and a framework to identify greenhouse gas emission assets and activities, and
commonly encountered scenario, PV solar, and built up the real-time quantify emissions from those sources at macro level. Yavari et al. [77]
emission reduction models based on the CDM principle. We found that address the challenge of accurately monitoring greenhouse gas (GHG)
it can be widely prompted based on the current level of IoT, blockchain emissions in logistics by developing and evaluating a real-time sensing
technology and significantly improves the efficiency of carbon emission technique using Internet of Things (IoT) and Artificial Intelligence (AI).
MRV. Researchers have emphasized the importance of digital trans The Modelx+MRV + O system’s application combining with AI/ML at
formation for enterprises, which involves applying big data, cloud macro level needs to be explored.
computing, blockchain, and IoT technologies to achieve a transition to As for the accounting model of case 1, some computational details
smart manufacturing. They also suggest applying internet business can be studied, such as the carbon emissions related to the storage and
thinking in operations, constructing efficient information systems, and repair of broken returnable packages, emissions or emission reductions
leveraging digital technology and strategic planning to assist in due to the type of energy (e.g. gasoline, diesel, electricity, etc.) used by
achieving China’s goals of peak carbon emissions and carbon neutrality the car carrying the recycling box. In addition, IoT technologies can be
[73]. Therefore, the present study has significant practical implications. added to other segments, such as the real-time distance traveled by the
Sipthore et al. [74] found that despite these benefits, blockchain can vehicle carrying the returnable package, and the real-time power con
only tackle a subset of the problems facing carbon markets, technology sumption if the cargo is electricity driven.
alone cannot resolve the intricacies of political relations or issues around Based on the results, this study recommends some policy proposals
accountability. Our findings suggest that the technology can be com for quantifying, monitoring and reducing the environmental impact of
bined with the policy making. Notably, heavy Chinese polluters must the carbon abatement from a policy perspective.
pay attention to the important role of digital transformation, applying 1) set up the carbon inclusion mechanism based on the proposed
digital technologies such as big data, cloud computing, blockchain, and Modelx+MRV + O system with credibility of delicacy management in
the IoT to shift towards smart manufacturing, while applying Internet some cities as a pilot project.
business thinking in their operations, building efficient information 2) optimize the current MRV system in the carbon trading system,
systems, and helping achieve the goal of carbon peaking and carbon consider the application of the IoT technology and blockchain
neutrality with the help of digital technologies and their own planning technology.
[73]. In summary, the system of carbon delicacy management combined
Our study suggests that the real-time carbon neutrality architecture advanced technology aiming for carbon neutrality with credibility
importing the CC and business partnership, government management, proposed in this paper has the most significant carbon mitigation
and the third review body helps to incentivize the public into climate potential.
action, to combat climate change.
Real-time carbon neutrality emphasizes the amount of emission reduction CRediT authorship contribution statement
generated in that hour after the adoption of an emission reduction behavior
versus the amount generated in that hour without the adoption of an Qingqing Li: Writing – original draft, Validation, Supervision,
emission reduction behavior, which, when accumulated in the long Project administration, Methodology, Formal analysis. Jinbo Shi:
term, will reduce the carbon emissions in the long-term goal (e.g. 2060 Methodology, Formal analysis. Wenxiang Li: Investigation. Siyun
carbon neutrality, i.e., carbon emissions equal to carbon sequestration), Xiao: Investigation. Ke Song: Investigation. Yongbo Zhang: Investi
thus accelerating the process of carbon neutrality. According to Keren gation. Zhenqi Wang: Investigation. Jie Gu: Visualization. Bo Liu:
Zhou et al, [75] by 2030, circular packaging should achieve a carbon Investigation. Xiaoming Lai: Investigation.
emissions reduction of 23.61 million tons of CO2-eq in China.
At micro level, this mechanism encourages nationwide participation
in climate action, fostering a carbon-neutral culture with hourly Declaration of competing interest
reduction, instant cash by line 1(via CCER/VCS or the others) and ma
terial rewards by line 2 (via the merchant’s own ecosystem). This creates The authors declare that they have no known competing financial
a competitive atmosphere under peer pressure and timely positive interests or personal relationships that could have appeared to influence
feedback, enhancing participation. the work reported in this paper.
As for the Government, it will enhance carbon emission management
efficiency. Visualizing emission reduction aids policy-making and aligns Data availability
with local carbon-neutral goals, promoting credible and comparable
reductions for global sustainability. No data was used for the research described in the article.
7. Future perspective Acknowledgement
Currently, a few researchers have studied the application of artificial The authors express their gratitude to Bin Wang, Chongyi Zhang,
intelligence (AI)/ machine learning (ML) in MRV. Climate TRACE [76] Feng Peng, Kan Ni, Professor Yuchuan Du, Anne Steadman, Robert
members use sensing and AI and ML algorithms under the MRV Andres, Meng Ye, and Yang Lu for their assistance with the study.
15
Appendix A
Fig.A.1: Two scenarios demonstration in case 1
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PV: photovoltaic
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Applied Energy 372 (2024) 123763

Contents lists available at ScienceDirect

An efficient tool for real-time global carbon neutrality with credibility of

1. Introduction European Union, have established net-zero emission targets, accounting

Second VCS • Biochar projects Qualified Validation/Verification Bodies

Fig. 1. Research progress on keywords of carbon emissions and IoT.

Fig. 2. Double-line global real-time carbon neutrality system.

ER = BE − PE (1) content may encompass emission reduction models, dynamic parame­

emission reduction, whereas the latter incorporates the carbon emis­

Fig. 5. Real-time methodology development process (using returnable boxes as an example).

1. Install communication transmission chips on smart

Fig. 7. The monitored parameter in each step of the returnable packaging.

4. Case study 2: Modelx for the current selected CDM

Project owners offset the carbon reduction by

they choose line 1, the regulators will verify

the validity of the carbon credit.

exhibit greater stability in most land regions due to extensive decar­

to yield additional income for residents in economically disadvantaged

The third-party verification agency spot inspects the results of M

agencies verify the reduction result verified by the third-party

verify the result of the Emission reduction. The regulatory

the integration of blockchain technology are consistent with Sections 3.5

(from M step in project emissions) to account the real-

and 3.6. Using the procedures, it is feasible to establish real-time mea­

chronologically and the dynamic/fixed parameters

surements, tracking, quantification, and certification of emission re­

Project owner uses formula 5 and formula 3

involves selecting a pathway for carbon neutrality, as illustrated in

time carbon emissions of project emissions

4.2. Implementation procedures of the MRV + O system

The implementation procedures of M step, R step, V step and O step

in blockchain are shown in Table 6, which is similar to the imple­

neutrality at real time.

collected by RFID tags (See Fig. 6) by project

2)Stationary monitoring of fixed parameters

by project owner, the acquisition methods

parameters in Table 3, which isTrealtime,i,j ,

The system can handle a wider range of carbon reduction activities

1)Real-time monitoring of dynamic

beyond the presented scenarios, such as subway transportation, trav­

5.1. Subway transportation

In the subway transportation scenario,2 IoT technology measures

subway mileage in real-time (a dynamic parameter), collected by sen­

sors in Train Control and Management Systems (TCMS). By multiplying

delving into detailed calculations. This approach is consistent throughout the

7. Future perspective Acknowledgement

Fig.A.1: Two scenarios demonstration in case 1

You might also like

ER = BE − PE (1) content may encompass emission reduction models, dynamic parame

emission reduction, whereas the latter incorporates the carbon emis

exhibit greater stability in most land regions due to extensive decar

and 3.6. Using the procedures, it is feasible to establish real-time mea

surements, tracking, quantification, and certification of emission re

in blockchain are shown in Table 6, which is similar to the imple

beyond the presented scenarios, such as subway transportation, trav

subway mileage in real-time (a dynamic parameter), collected by sen