Roles of UN & GEC 

in the Value Chain

of Voluntary Carbon 

Offset Market

Issues with Current System

- Current account based system is creating  information frictions in the value chain.
- When to retire COC from end users’ side, there 
is high 
chance of double counting.
- To enable carious services based on the COC, 
based system (token system) is required.

Mere existence of elemental 
technologies cannot fulfill 

ecosystem of VCM, 
not to mention building trust 
and activating it.

Proposal By GEC-GESIA

- UNFCCC (and/or UNCCD) can create COC certificate on value based system.

- Transparency and credibility will be enhanced in voluntary carbon offset market.

- All the COC certificate can be verified and traced.

- All the required system will be provided by GEC and its affiliate GESIA Platform.

Value Chain of Voluntary Carbon 

(Offset) Market: 

Creating Frictionless and Verifiable Information Flow


The Need for Custody in the VCM Value Chain

Technology Meets Finance

Cryptocurrency: The financial aspect of utilizing 

blockchain technology is gradually becoming more 

important than the technical aspect.

Proof of stake/balance is required for circulation 

issues, Proof of ownership is required for wallet 

ownership/control issues. 

→ Custody biz is required/becomes larger.


-It transparently proves the custody volume (warehousing/shipping) and confirms that the virtual asset
is where it should be.

-It is mainly needed by corporate customers. It is a project similar to ‘safe', and the source of revenue is storage fees and 00 agency fees.

Custody Business Performer

- Custodian Banksa

- Exchangers

- Digital Asset Managers

ª From July 2020, all US banks can provide virtual 

  asset custody service.

In Korea

- KODA (Korea Digital Asset) invested by KB

- KDAC (Korea Digital Asset Custody) invested by 


- CARDO invested by NH

SK Securities is also developing a digital asset custody 

service with PeerTech, which operates the 

Exchange GDAC.

Custody in the Value Chain of VCM

- The carbon trading market size will grow rapidlyᵇ,

 and the utilization/application of virtual assets in this field is inevitable.

- Custody is essential for the transparency/manageability/healthiness/activation of the carbon trading market (i.e., trust building and project stability).

ᵇ It is expected to grow 15 times by 2030 and 100 times 

  by 2050 compared to 2020.

  McKinsey Sustainability 2021.01.29 Report.

Conditions for expanding the scale of VCM &
certified emission reduction/offset credit 

value chain

1. Creating shared principles for defining and  
     verifying carbon credit . 
(Core carbon principles (CCPs) and attribute taxonomy)

2. Developing contracts with standardized terms.

(Core carbon reference contracts)

3. Establishing trading and post-trade infrastructure.

(Infrastructure: trade, post-trade, financing, and data)

4. Creating consensus  about the proper use of  carbon credits.

(Consensus on offset legitimacy)

5. Installing mechanisms  to safeguard the market’s integrity.

(Market integrity assurance)

6. Transmitting clear signal of demand.

(Demand signals)

McKinsey Sustainability 2021.01.29 Report.

Reference: ‘Article 6 of the Agreement: Relating to the International Certified Emission Reduction Market’ decision made at the 2022.11 UNFCCC COP27

Article 6.2

Cooperative Approach

Forming an international market

through bilateral/multilateral cooperation.

- All countries participating in Article 6.2 of the Paris 

  Agreement shall establish a registry
  (the basis for tracking ITMOs).

- Data arising from Article 6.2 of the Paris Agreement   shall be recorded in a centralized calculation
  platform. (Ensuring transparency, accuracy, etc., of 

  bilateral agreements)

Article 6.4

Sustainable Development Mechanism

Establish the sustainability management 

mechanism of the supervisory authority.

- Limiting the validity period of the existing Kyoto 

  mechanism (CDM) (December 31, 2025) and
  the transition to the new mechanism.

- Carbon credits (A6.4ERs) shall be approved by the 
  UNFCCC's Article 6.4 Supervisory Body
  (6.4SB) before they can be used.