China’s BYD, the world’s largest manufacturer of electric vehicles and batteries, launched their carbon banking system. It uses the VeChainThor a business orientated public blockchain architected by VeChain.
VeChain and DNV GL, a global quality assurance and risk management firm based in Norway, were co-developers of the app. DNV is also an investor in VeChain.
Together the three have developed a carbon credits solution which rewards drivers based on their performance and carbon footprint.
The car transmits data on mileage, speed and fuel/electricity consumption to the VeChainThor platform where it’s stored and used.
Partner firms can then retrieve this information, which is secure, immutable and easy to access.
DNV GL’s role is to be a trusted independent third party, who certifies the whole process and the data collected by the in-car computer.
What this means for BYD is that they can catalog and analyze real-time vehicle data, helping them to improve their cars.
Additionally, repair garages will also provide data to the platform, furthering BYD’s awareness of potential weaknesses in their cars.
George Kang, CEO at DNV GL Business Assurance Greater China Region said: “This solution represents the first major partner to utilize our Carbon Banking solution. BYD has gone to significant lengths to ensure our goal of making the world safer, smarter and greener.”
Insurers also have a potential stake in this. With the ability to track damages and repairs, they can provide better product packages to consumers.
The People’s Insurance Company of China (PICC) had partnered with VeChain to develop this system. VeChain’s announced the relationship with PICC a few days ago.
Drivers also benefit from carbon credit rewards for efficient and less-polluting driving. They can use these credits to purchase goods and services through VeChain’s Carbon Credit app.
To do this, all drivers need to do is scan a QR code on the car using the app.
Credits are issued through a smart contract on VeChainThor that inputs the electricity/fuel data into an emission reduction formula.
VeChain’s co-founder and CEO, Sunny Lu, said: “As the global leader in green car manufacturing, BYD offered us the opportunity to pioneer real change.”