Digital Measurement, Reporting and Verification (MRV)

Report on Pilot Projects, Roadmap and Resources

March 2022

The Project was undertaken with the financial support of:

Ce projet et été réalisé avec l’appui financier de:
Environment and Climate Change Canada
Environment et Changement Climatique Canada
March 2022

Executive Summary

This report summarizes the digital measurement, reporting and verification (aka “blockchain”) pilot
projects within the Reciclo Organicos program. The digital pilots include the demonstration of
“DigitalMRV” software for the Copiulemu landfill gas project and the Molina biodigester project
located in Chile. The objectives of the digital pilots include determining the feasibility to develop
and road test digital technologies to enhance and/or substitute for conventional MRV services at
waste projects. Furthermore, the pilots compared the DigitalMRV versus conventional MRV to
determine the pros and cons.

The Reciclo Organicos program (2017-2022) is associated with the Chile-Canada Bilateral
Agreement on Environmental Cooperation, part of the Chile-Canada Free Trade Agreement. The
Government of Canada provided $7M CAD in financial support for the implementation of Chile’s
NDC, including the Reciclo Organicos program to focus on the waste sector and involves activities
for:
• landfill gas capture and utilization
• composing
• anaerobic digestion (biodigester)
• MRV Innovations

The DigitalMRV pilots used digital technologies and tools including:

• an online portal to manage collaboration and consultation to develop MRV methodologies
for the waste projects, and integrated with the DigitalMRV software
• an online portal for online reporting of the waste projects, and also online verification
based on leading standards (e.g., ISO 14064) and GHG programs (e.g., WCI)
• an online portal with customized 3D “digital twin” of the project sites and customized UI/UX
(user interface and user experience) to display the project data and supporting evidence
(photos, images, electronic manuals)
• connection to onsite digital sensors (aka “IoT” devices) sending real-time data via
dedicated computer edge server and internet connection
• distributed ledger technology (DLT, aka “blockchain”) and cryptography to secure the data

The key results include:

• development and deployment of DigitalMRV software at the Copiulemu landfill, and also
DigitalMRV software at the Molina biodigester
• Chile is hosting two world leading DigitalMRV implementations, which have been
highlighted publicly in reports by UNEP and World Bank
• capacity building of project participants in the implementation of DigitalMRV software
onsite, as well as stakeholder webinars and a spotlight paper as part of the South-South
exchange between Chile and the Pacific Alliance with countries in West Africa
 • involvement of Dell Technologies to provide an industrial server and engineering
expertise to implement the leading edge “data confidence fabric” (value $25,000
contribution)
• a summary “how to guide” to plan a DigitalMRV pilot and to perform the initial
DigitalMRV readiness assessment for future projects
• compilation of resources and prospective partners to facilitate future DigitalMRV projects

DigitalMRV has been developed to be more effective than conventional MRV, for example in
terms of credibility, verification quality and time availability of reporting results.

The economic efficiency of DigitalMRV compared to conventional MRV depends on the specific
circumstances. Two scenarios were assessed to compare DigitalMRV vs conventional MRV. The
assessment considers current costs for DigitalMRV, which are expected to decrease as the digital
technologies and supporting systems mature. In contrast, as carbon markets rapidly increase and
there is increasing demand for MRV services, the supply of conventional MRV will not keep pace
and therefore demand will increase conventional MRV costs over the next several years.

The more DigitalMRV is replicated to projects, the more savings DigitalMRV can achieve – it is
not cost effective to develop DigitalMRV to deploy at just one project site due to the large upfront
investment. Assuming replication of DigitalMRV to 10 project sites, estimated costs savings range
from $1.29M to $2.69M over a 10-year period.

There are more and more companies developing DigitalMRV solutions and the outlook is very
positive. Examples of interest in digital MRV and digital for climate (markets, finance, actions)
includes:

Table 1: Organizations active in DigitalMRV

IT Sector Financial Carbon Markets Governments Others

Institutions
Dell Technologies World Bank Gold Standard Canada UNFCCC
Microsoft EBRD Verra Chile UNEP
Google ADB AirCarbon EU ClimateKIC
IBM Citibank Exchange Japan GeSI
HP Temasek IETA Netherlands ITU
Samsung DBS Bank Taskforce for Spain ISO
InterWork Alliance Barclays Scaling Voluntary Sweden SBT
Global Blockchain Macquarie Carbon Markets Switzerland CCC
Business Council HSBC EU ETS CLI

As countries and subnational actors address growing demand for climate actions and resources,
there will be increasing efforts to advance MRV systems (governance, data, methodologies,
experts…) including use of digital solutions to provide cost-effective, high-quality MRV.
Table of Contents

1. About Us .................................................................................................................................. 1
2. Background Context and Rationale ........................................................................................ 2
3. Overview .................................................................................................................................. 4
4. Benefits .................................................................................................................................... 9
5. Economic comparison of DigitalMRV vs Conventional MRV ............................................... 12
6. Key Results and Lessons Learned ....................................................................................... 19
7. Next Steps ............................................................................................................................. 21
8. Resources.............................................................................................................................. 23
9. Partnering and Training Opportunities .................................................................................. 25
10. How to Develop a DigitalMRV Pilot and Perform a DigitalMRV Readiness Assessment .... 26
 1. About Us

ClimateCHECK has an establish track record for Setting the Standard and a world class partner
ecosystem to support best in class digital innovations and 3 rd generation distributed ledger
technology (“DLT”) solutions to enable the tokenization and monetization of standardized
sustainability benefits. For example, ClimateCHECK’s ScribeHub online platform is used by the
Government of Canada (ECCC) for both domestic and international GHG Quantification
Methodology development. As well, the Government of France in partnership with CDP uses
ScribeHub to support the development of sectoral methodologies for Assessing the low-Carbon
Transition (ACT) of companies. ScribeHub is also integrated with DigitalMRV that is built on IOTA
technologies and leading standards for the data economy (see below). These digital solutions
encompass the end-to-end value chain for standardization, certification, tokenization, and
subsequent monetization of sustainability benefits.

ClimateCHECK collaborates and partners with several leading organizations to deliver industry
leading solutions for MRV of climate and sustainability:
• IOTA Foundation – a 3rd generation distributed ledger technology (DLT) ecosystem
encompassing a suite of technologies for the data economy (e.g., Digital Identity, Track
and Trace, International Trade, Industrial IoT) that enables DigitalMRV to be stacked with
the foundational digital infrastructure of next generation sustainability markets; IOTA is
collaborating with the European Commission’s European Blockchain Services
Infrastructure
• Gold Standard Foundation – the leading non-profit organization advancing high integrity
methodologies and next generation MRV systems for climate and sustainability;
ClimateCHECK and IOTA partnered with Gold Standard to launch the Open Collaboration
for Next Generation Digital Solutions for MRV with the support of Google.org
• Dell Technologies – Dell collaborates with IOTA and other industry leaders on Project
Alvarium (now managed by the Linux Foundation) to establish an industry standard
specifying a methodological framework for Data Confidence Fabrics (DCF – link to report).
Dell is collaborating with IOTA and ClimateCHECK, providing edge servers and
engineering time, to integrate the DCF with DigitalMRV at the Molina, Chile biodigester
facility.

Furthermore, international organizations supporting the global movement to advance digital

solutions for climate, including the World Bank and UNEP recognize (in publications and events)
the DigitalMRV solution is a market-leading solution.

1
 2. Background Context and Rationale

Stakeholders around the world are facing a climate crisis that is getting worse and achieving
climate targets is becoming more challenging. Global GHG emissions are going up, not down –
and time is running out to achieve government climate goals. Clearly we are all facing an
increasingly challenging “crunch period” to achieve as quickly as possible the most economically
efficient, deep decarbonization and GHG emissions reductions that also enables a long term low-
carbon transition. Recognizing this wicked challenge to achieve 2030 climate goals, to make
matters worse, there is a proliferation of recent reports highlighting the epidemic of
“greenwashing” that is creating a crisis of credibility. For example,
• Bloomberg: ‘False climate solutions’ (2022) and ‘ESG greenwashing explodes’ – $2 trillion
erased from European markets (2021)
• Boston Consulting Group: AI-powered study reveals 91% of companies do not measure
emissions comprehensively and report average errors of 30% to 40% (2021)
• Nature Magazine: global GHG emissions are misreported by 5.5 billion tonnes of CO2e;
other estimates range from a low-end error of 8.5 billion tonnes to a high-end of 13.3 billion
tonnes across all sources of GHG emissions (waste, energy, land use, industry) of the
current global total annual GHG emissions of about 40 billion tonnes of CO2e. For
comparison, the US annual GHG emissions are 6.6 billion tonnes.

Notwithstanding these crisis of increasing GHG emissions and lack of credibility from
greenwashing, Carbon markets and carbon prices are rapidly increasing. For example, Reuters
reported the EU ETS carbon allowance price neared 100 Euros per tonne of CO 2e in December
2021. The IMF recommends a minimum carbon price of $75 be established by 2030. Voluntary
carbon markets exceeded $1 billion in 2021, and the Taskforce for Scaling Voluntary Carbon
Markets, led by Mark Carney, estimates voluntary carbon markets are expected to be $100 billion
by 2030. Reuters reported the global carbon markets (voluntary and compliance) grew 164%
during 2021 to a new record of $851 billion.

Over the last several years, Chile has been cooperating with its partners in the Pacific Alliance
within the Technical Subgroup on MRV (SGT-MRV). The SGT-MRV has developed a
Coordinating Framework to determine priorities and activities to advance the maturity and
effectiveness of their MRV systems. The main objective is to improve the condition of MRV
systems, for example, shared definitions and taxonomies as well as interoperability, in order to
accelerate climate investments and reduce climate finance risks.

However, there are many different approaches, as well as gaps, among national and subnational
actors. Furthermore, there is insufficient MRV capacity (i.e., not enough MRV professionals). As
NDC implementation and carbon markets rapidly increase and there is a demand for MRV
services, the supply of Conventional MRV will not keep pace and therefore demand will increase
Conventional MRV costs over the next several years. The following figure illustrates the scale of
the challenge for MRV today to meet growing demand over the coming years and decades.

2
Figure 1: Scale of the challenges for MRV

3
 3. Overview

This section summarizes the DigitalMRV pilot projects within the Reciclo Organicos program. The
DigitalMRV software for tracking and reporting emission reductions at Copiulemu and Molina was
built on top of the facility's existing data measurement and management systems. The DigitalMRV
software was developed according to the requirements of the GHG Quantification Protocols
developed within the Reciclo Organicos program. The DigitalMRV software was jointly developed
by ClimateCHECK and IOTA.

The process for the DigitalMRV pilot projects has five phases:
● Engagement definition (concept note and proposal)
● Assess the readiness of the site for the DigitalMRV solution
● Design the DigitalMRV solution
● Build the DigitalMRV solution and iterate enhancements
● Deploy and manage the DigitalMRV solution

Figure 2: Phases of the DigitalMRV pilot projects

Engagement DigitalMRV Solution Solution Build Operate &

Definition Readiness Design Manage
Assessment Simulation and
Stakeholder Software tools & MVP Activation &
Goals PIN, PFDs, Integrations Continuous
PNIDs Data flow Testing & Monitoring
MRV Program & architecture Enhancements Stakeholder
Standard(s) Digital Sensors Process Engagement
& Data Systems automation Commission Online Reporting
Climate Finance UI / UX & Verification
Work plans

Assessing the readiness of the site for the DigitalMRV solution

In consultation with the project developers and stakeholders (for example, government, project
partners), the parties establish the scope of work, objectives, et cetera for the DigitalMRV process
and solution. The main activities in this phase include collecting and assessing project information
in regard to the MRV methodology requirements, for example:
● PFDs, PNIDs, equipment, related primary value chain activities
● Data acquisition (meters and sensors, calibration, data availability, data systems, SCADA,
databases, site connectivity, data structure, etc.)
● Data treatment (security, processing, missing data, etc.)
● Data reporting (format, programs, etc.)
● Data verification (QA/QC, reasonableness checks, etc.)
● GHG calculations based on the MRV methodology

4
 ● Feasibility to procure hardware, data systems and reliable internet connectivity (for
example, dedicated PC, VPN)

A dedicated data room for sharing files and web-meetings are conducted to clarify and share
information. After approximately one month including interim drafts, the readiness assessment
report (approximately 10 pages) is provided to the project developers and partners.

Designing the DigitalMRV solution

Based on the readiness assessment report, a design plan is developed to guide the development
of the DigitalMRV solution. The DigitalMRV solution is developed based on the underlying digital
technologies (for example, IoT, DLT), and for this use case it is based on existing IOTA open
source solutions and software; for example, IOTA Identity, IOTA Streams and the IOTA Tangle.
Additional solutions can be integrated; for example, the Project Alvarium Data Confidence Fabric
(DCF) methodological framework. The main activities include:
● Define solution objectives, scope, system requirements, etc.
● Define solution data-flow architecture, software integrations, real-time and live data
transmission, automation and processing requirements
● Define user interface and user experience (UI/UX), mock-ups for webpage layouts and
functionality, user personas…
● Define development and implementation roadmap and timelines

Figure 3: Dataflow process diagram

5
Building the DigitalMRV solution

Based on the design plan, detailed instructions are developed for engineers, software
developers, and other stakeholders. The main activities include:
● Build an initial internal minimum viable prototype for the site based on the MRV
methodology
● Conduct internal testing, interact with the project developers as onsite data systems are
commissioned, and identify areas for improvement
● Finalize the build and prepare for deployment

The ScribeHub online platform is used to create the online project report and online verification
report in accordance with the MRV methodology requirements and relevant standards. A single
sign on (SSO) Integration is implemented between DigitalMRV and ScribeHub within a
dedicated workspace for the site.

Deploying and Managing the DigitalMRV Solution

The main activities include:

● Confirm connections and integration with onsite sensors and data systems with the
DigitalMRV solution (in close cooperation with the project developers)
● Commission the initial activation of the DigitalMRV software, and continuously monitor
performance for the first two weeks,
● Detect any issues and perform system fixes and resolve errors/disruptions, and develop
improvements
● Write up the online project report and perform internal reviews
● Write up the online verification report
● Continuous supervision and coordination among stakeholders
● Engage stakeholders on an as-needed basis with web meetings, web tutorials, progress
reports, etc.

6
Figure 4 shows examples of DigitalMRV online software webpages to illustrate the “drill down”
from the 3D digital twin of the landfill gas facility, down into the operational unit equipment, down
into the digital sensor on the equipment measuring gas flow, and to the level of data and
information.

Figure 4: Examples from DigitalMRV online software webpages

7
The DigitalMRV software is supported by various digital technologies. Onsite, digital sensors
report data in accordance with the GHG Quantification Protocol. For landfill projects, the data
collected concerns the volume and composition of biogas produced at the landfill. The volume
of biogas is recorded in units of cubic meters and monitored every 15 minutes. By measuring
the composition of the gas, it is possible to record the percentage of methane in the biogas; the
destruction of methane results in the project’s emission reductions, due to the high global
warming factor of the gas (approximately 28 times that of carbon dioxide).

The digital sensors recording gas flow and composition report the data to a dedicated server at
the landfill from which it is uploaded to the “cloud”. A dedicated onsite computer for the DigitalMRV
software was used in order to avoid the complexity (including security and compatibility issues)
of installing the DigitalMRV software on the landfill operator’s computer system. Monitoring and
data records that act as supporting evidence - for example photos of sensors and equipment,
calibration records, sensor manuals and monitoring plans - are incorporated into the DigitalMRV
software. A 3D digital twin of the project site and sensors is incorporated into the portal’s user
interface (UI) to enable a virtual audit user experience (UX). The DigitalMRV software is integrated
with ScribeHub to enable customizable online project reporting and verification reporting
according to the GHG Quantification Protocol and international standards.

8
 4. Benefits

The DigitalMRV software uses IOTA’s permissionless DLT (Distributed Ledger Technology),
which uses a Directed Acyclic Graph rather than a traditional blockchain. Unlike blockchains,
IOTA’s DLT enables unparalleled energy efficient performance with security, scalability,
decentralization and with no fees for transferring data. These attributes of IOTA’s technology have
the ability to revolutionize MRV. DLT plays a central role in DigitalMRV. DLTs such as IOTA, in
combination with digital sensors, eliminate the need for intermediaries to verify data and create a
reliable, immutable, and traceable energy monitoring system. Promoting DigitalMRV with DLT
could be one of the biggest drivers of climate change mitigation and new sustainable business
models, as it opens opportunities for a new carbon market with better emissions accounting,
assurance, certification, trading, and monetization.

To verify data sources, documents, contracts, identities, or official certificates, DLT automatically
provides the security and trust that would otherwise be generated by third parties. As a DLT, IOTA
also offers transparency in the origin of objects, materials, and processes. The fact that every
step can be documented in a non-manipulable way creates trust in a process which that can yield
new insights or products. IOTA is the only DLT protocol that enables data transactions without
tokens. IOTA can be used for secure data transactions without having to buy or hold
cryptocurrency.

Due to its ability to integrate data transactions, it also enables a high level of utility to hardware-
based integrations. The hardware/processor requirements for IOTA are very low, which enables
a broad range of device types to connect to the Tangle. The energy consumption on each device
is also very low, which enables the protocol to run on battery-powered devices.

The absence of miners (a feature of most other blockchains) and the lightweight nature of the
IOTA technology guarantee a significantly lower overall energy consumption.
Bitcoin uses ~926.23 kilowatt-hours per transaction whereas IOTA needs only
~0,0000000000003% of the energy required by Bitcoin. It also requires less energy for processing
a transaction compared to other platforms such as Ethereum, Tezos, and Mastercard. 1 This
highlights the fact that IOTA is designed to minimize energy consumption.

There is virtually no upper limit to the number of devices communicating on the Tangle. Contrary
to other architectures where transactions must be processed one after the other in packages
called blocks, IOTA’s tangle technology provides parallel processing where various transactions
can be processed simultaneously. This enables IOTA to process over 1000 transactions per
second, while Bitcoin and Ethereum are currently able to process seven and 25 transactions per

1
Source on comparison IOTA Bitcoin and Ethereum: Overcoming the dual crises of climate change and greenwashing; Calculations
based of Tezos based on the reported numbers of Tezos Proof of Work vs. Proof of Stake: the Ecological Footprint; Mastercards
energy consumption per transaction has been retrieved from Mastercard Corporate Sustainability Report 2017.

9
second, respectively. Adding more connected devices does not automatically incur additional
costs for having to scale the related decentralized server infrastructure. The IOTA Streams
framework, which is used in DigitalMRV, enables secure, structured capturing of data on the
device it is created on (e.g., environmental sensor array) and tamper-proof, efficient transport
over the Tangle, guaranteeing the authenticity of the data for all involved parties.

All IOTA frameworks are built to be used without the need of transferring value tokens with each
transaction. For example, an Oracle can capture and transmit data to a subscriber over the IOTA
protocol without the need for neither publisher nor subscriber to possess IOTA cryptocurrency
tokens.

The IOTA protocol distinguishes between data and value. Indeed, information is communicated
in the Tangle in generic envelopes we call transactions. Transactions can contain value or data
stored in a particular payload. This approach separates the communication of information with
the applications running on top of the Tangle, allowing the core protocol to be largely agnostic to
the information it stores, making development easier and more flexible.

As DigitalMRV integrations continue to advance through pilots such as mentioned in this paper,
new capabilities under development by other entities in the open-source ecosystems surrounding
data integrity, security, compliance, privacy and analysis will continue to bolster the existing
capabilities that are being tested and developed. One such use case is:
Use case: Project Alvarium - Increasing high reliability in data for business-critical decision making
through the Data Confidence Fabric

Modern industries rely on automated algorithms to make business-critical decisions. These

algorithms can improve the speed and quality of decision-making, but only if the underlying data
is trustworthy, which becomes more difficult to ascertain as data sets grow. Together with Dell
Technologies and Intel, the IOTA Foundation is working on Project Alvarium, which develops new
methods for evaluating and guaranteeing the reliability of ever-growing data sets, collected from
various sources including intercompany data transactions. This will increase reliability and
efficiency in decision-making processes and can reduce costs.

The work being done in Project Alvarium has established the core capabilities to monitor data as
it is transferred from its point of creation to the point of consumption, or from the sensor to the
local network, through the edge infrastructure and into the cloud where it is integrated into an
application. The capability to have granular oversight and transparency in data across the
complete IT infrastructure enables an unparalleled ability for trust and compliance in the data to
be established and, more importantly, quantified. The quantification of this trust is established in
a metric known as a confidence score. This confidence score is based on pre-established criteria
and variables set by stakeholders to be able to trust the data. These criteria and variables are
verified and traced through the IT infrastructure that facilitates the creation, delivery and
consumption of the data and allows the data to be autonomously valued. This will be critical for

10
the growth of trusted data marketplaces and for applications to autonomously utilize data for
various applications in near real-time.

In the climate space, this becomes critical because the ability to measure the trust in the data can
be explicitly tied to the value of the emissions reductions. If the data utilized in the DigitalMRV
software has a very high data confidence measurement, then the carbon credits it enables would
also be more valuable. This variable can be used to offset the cost of enhancing traditional climate
actions attempting to make a positive climate impact and get integrated into carbon markets. It
allows for a more readily measurable return on investment, incentivizing ESG investment in new
impact creation mechanisms and facilities, and accelerating industry-standard development,
methodology creation and adoption. As it scales into adoption, it provides global insight into the
rate of impact that the industry is creating as a whole.

In addition to expanding the geographic and sectoral scope of the DigitalMRV system, further
functionalities can be incorporated. From the IT side, future improvements of the DigitalMRV
software include using digital solutions to:
• Report data from the DigitalMRV software directly to a national GHG inventory and for
climate finance;
• Verify emission reductions in real-time as data is collected;
• Link to carbon credit registries and or marketplaces; and,
• Link to climate finance MRV.

11
 5. Economic comparison of DigitalMRV vs Conventional MRV

DigitalMRV has been developed to be:

• more efficient than conventional MRV to save time and money on quantification and
verification
• more effective than conventional MRV, for example in terms of credibility, verification
quality and time availability of reporting results.

The economic efficiency of DigitalMRV compared to conventional MRV depends on the specific
circumstances. Two scenarios were assessed to compare DigitalMRV vs conventional MRV.

• Scenario 1 for DigitalMRV still requires full independent third-party verification; this is
because there is not a consensus for an international standard for automating digital
verification. Although DigitalMRV can reduce the level of effort to do an independent third-
party verification, the economic assessment does not consider those potential cost
savings.
• Scenario 2 for DigitalMRV automates the verification however a new type of independent
third-party verification must still be involved just for the first year to validate DigitalMRV is
performing the verification, and also to perform periodic spot audits (e.g. every 3 years).

The assessment considers current costs for DigitalMRV, which are expected to decrease as the
digital technologies and supporting systems mature. In contrast, as carbon markets rapidly
increase and there is a demand for MRV services, the supply of conventional MRV will not keep
pace and therefore demand will increase conventional MRV costs over the next several years.

The key points of the economic assessment include:

• If DigitalMRV does not already exist and is therefore a “new build”, then DigitalMRV
requires significant upfront investment to develop and commission the software at the first
site
• A high-end conventional MRV engagement is estimated to cost on average $65,000 per
year; this cost is much easier to finance year-to-year.
• If DigitalMRV is deployed to 10 sites, and assuming a 10 year timeline, then Scenario 1
results in a 28% reduction in total MRV costs ($1.29M) compared to conventional MRV
• If DigitalMRV is deployed to 10 sites, and assuming a 10 year timeline, then Scenario 1
results in a 56% reduction in total MRV costs ($2.69M) compared to conventional MRV

The following tables present the year-by-year assessment for Conventional MRV vs DigitalMRV
Scenario 1 and Scenario 2 (values in $1000s CAD).

12
Table 2: Conventional MRV ($1000s)

Conventional MRV costs at first site Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Total
Collect data and supporting evidence $ 10.0 $ 7.5 $ 7.5 $ 7.5 $ 7.5 $ 7.5 $ 7.5 $ 7.5 $ 7.5 $ 7.5 $ 77.5
Quantify GHG calculations $ 5.0 $ 2.5 $ 2.5 $ 2.5 $ 2.5 $ 2.5 $ 2.5 $ 2.5 $ 2.5 $ 2.5 $ 27.5
Develop GHG report $ 15.0 $ 10.0 $ 10.0 $ 10.0 $ 10.0 $ 10.0 $ 10.0 $ 10.0 $ 10.0 $ 10.0 $ 105.0
Prepare and participate in verification $ 10.0 $ 10.0 $ 10.0 $ 10.0 $ 10.0 $ 10.0 $ 10.0 $ 10.0 $ 10.0 $ 10.0 $ 100.0
Conventional MRV costs at first site $ 40.0 $ 30.0 $ 30.0 $ 30.0 $ 30.0 $ 30.0 $ 30.0 $ 30.0 $ 30.0 $ 30.0 $ 310.0

Independent third-party verification $ 25.0 $ 15.0 $ 15.0 $ 15.0 $ 15.0 $ 15.0 $ 15.0 $ 15.0 $ 15.0 $ 15.0 $ 160.0
Total costs at first site $ 65.0 $ 45.0 $ 45.0 $ 45.0 $ 45.0 $ 45.0 $ 45.0 $ 45.0 $ 45.0 $ 45.0 $ 470.0

Cost for ten sites $ 650.0 $ 450.0 $ 450.0 $ 450.0 $ 450.0 $ 450.0 $ 450.0 $ 450.0 $ 450.0 $ 450.0 $ 4,700.0

13
Table 3: Scenario 1: DigitalMRV cost at first site (plus additional independent third-party
verification, $1000s)
DMRV cost at first site Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Total
Concept proposal $ 5.0 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 5.0
Readiness assessment $ 25.0 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 25.0
Design $ 50.0 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 50.0
Development (tech and reports) $ 250.0 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 250.0
Deployment (integrations) $ 60.0 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 60.0
One year support $ 20.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 65.0
DMRV costs at first site $ 410.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 455.0

Independent third-party verification $ 25.0 $ 15.0 $ 15.0 $ 15.0 $ 15.0 $ 15.0 $ 15.0 $ 15.0 $ 15.0 $ 15.0 $ 160.0
Total costs at first site $ 435.0 $ 20.0 $ 20.0 $ 20.0 $ 20.0 $ 20.0 $ 20.0 $ 20.0 $ 20.0 $ 20.0 $ 615.0

14
Table 4a and 4b: Scenario 1: DigitalMRV cost at additional sites (near identical conditions, $1000s)

DMRV cost at an additional site Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Total
(near identical conditions)

Concept proposal $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Readiness assessment $ 5.0 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 5.0
Design $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Development (tech and reports) $ 65.0 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 65.0
Deployment (integrations) $ 15.0 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 15.0
One year support $ 20.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 65.0
First site total $ 105.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 150.0

Independent third-party verification $ 25.0 $ 15.0 $ 15.0 $ 15.0 $ 15.0 $ 15.0 $ 15.0 $ 15.0 $ 15.0 $ 15.0 $ 160.0
Total costs at first site $ 130.0 $ 20.0 $ 20.0 $ 20.0 $ 20.0 $ 20.0 $ 20.0 $ 20.0 $ 20.0 $ 20.0 $ 310.0

DMRV cost at first and nine Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Total
additional sites

Total cost $ 1,605.0 $ 200.0 $ 200.0 $ 200.0 $ 200.0 $ 200.0 $ 200.0 $ 200.0 $ 200.0 $ 200.0 $ 3,405.0

Cost per site (across ten sites) $ 160.5 $ 20.0 $ 20.0 $ 20.0 $ 20.0 $ 20.0 $ 20.0 $ 20.0 $ 20.0 $ 20.0 $ 340.5

15
Table 5: Scenario 2: DigitalMRV cost at first site (verification is automated and an independent third-party verifier must still be involved just for the
first year and spot audits, $1000s)

DMRV cost at first site Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Total
Concept proposal $ 5.0 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 5.0
Readiness assessment $ 25.0 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 25.0
Design $ 50.0 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 50.0
Development (tech and reports) $ 250.0 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 250.0
Deployment (integrations) $ 60.0 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 60.0
One year support $ 20.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 65.0
DMRV costs at first site $ 410.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 455.0

Independent third-party verification $ 10.0 $ - $ - $ 5.0 $ - $ - $ 5.0 $ - $ - $ 5.0 $ 25.0

Total costs at first site $ 420.0 $ 5.0 $ 5.0 $ 10.0 $ 5.0 $ 5.0 $ 10.0 $ 5.0 $ 5.0 $ 10.0 $ 480.0

16
Table 6a and 6b: Scenario 2: DigitalMRV cost at first site (verification is automated and an independent third-party verifier must still be involved
just for the first year and spot audits, $1000s)

DMRV cost at additional sites (near Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Total
identical conditions)

Concept proposal $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Readiness assessment $ 5.0 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 5.0
Design $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Development (tech and reports) $ 65.0 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 65.0
Deployment (integrations) $ 15.0 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 15.0
One year support $ 20.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 65.0
First site total $ 105.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 5.0 $ 150.0

Independent third-party verification $ 5.0 $ - $ - $ 5.0 $ - $ - $ 5.0 $ - $ - $ 5.0 $ 20.0

Total costs at first site $ 110.0 $ 5.0 $ 5.0 $ 10.0 $ 5.0 $ 5.0 $ 10.0 $ 5.0 $ 5.0 $ 10.0 $ 170.0

DMRV cost at first and nine Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Total
additional sites

Total cost $1,410.0 $ 50.0 $ 50.0 $ 100.0 $ 50.0 $ 50.0 $ 100.0 $ 50.0 $ 50.0 $ 100.0 $2,010.0

Cost per site (across ten sites) $ 141.0 $ 5.0 $ 5.0 $ 10.0 $ 5.0 $ 5.0 $ 10.0 $ 5.0 $ 5.0 $ 10.0 $ 201.0

17
Table 7: Comparison of Conventional MRV vs DigitalMRV scenario 1 and scenario 2, ($1000s)

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Total
Conventional MRV cost $ 650.0 $ 450.0 $ 450.0 $ 450.0 $ 450.0 $ 450.0 $ 450.0 $ 450.0 $ 450.0 $ 450.0 $ 4,700.0
DMRV Scenario 1 cost $ 1,605.0 $ 200.0 $ 200.0 $ 200.0 $ 200.0 $ 200.0 $ 200.0 $ 200.0 $ 200.0 $ 200.0 $ 3,405.0
Cost difference vs Scenario 1 $ (955.0) $ 250.0 $ 250.0 $ 250.0 $ 250.0 $ 250.0 $ 250.0 $ 250.0 $ 250.0 $ 250.0 $ 1,295.0
DMRV Scenario 2 cost $ 1,410.0 $ 50.0 $ 50.0 $ 100.0 $ 50.0 $ 50.0 $ 100.0 $ 50.0 $ 50.0 $ 100.0 $ 2,010.0
Cost difference vs Scenario 2 $ (760.0) $ 400.0 $ 400.0 $ 350.0 $ 400.0 $ 400.0 $ 350.0 $ 400.0 $ 400.0 $ 350.0 $ 2,690.0

18
 6. Key Results and Lessons Learned

The first pilot project at the Copiulemu landfill started January 2020. As COVID started to become
a global pandemic, it was necessary to revise the original project work plan because travel and
onsite workshops were not possible. Unfortunately, COVID travel restrictions continue to remain
in place through to the end of both pilot projects in March 2022. It was difficult to arrange for
personnel to access the sites to set up the DigitalMRV software and the new computers. However,
the challenges of COVID motivated developers working on the DigitalMRV software as it became
more evident that new ways would be required to do MRV (without onsite MRV professionals).

The key results include:

• development and deployment of DigitalMRV software at the Copiulemu landfill, and also
DigitalMRV software at the Molina biodigester
• therefore, Chile is hosting two world leading DigitalMRV implementations, which have
been highlighted publicly in reports by UNEP and World Bank
• capacity building of project participants in the implementation of DigitalMRV software
onsite, as well as stakeholder webinars and a spotlight paper as part of the South-South
exchange between Chile and the Pacific Alliance with countries in West Africa
• involvement of Dell Technologies to provide an industrial server and engineering expertise
to implement the leading edge “data confidence fabric” (value $25,000 contribution)
• a summary “how to guide” to plan a DigitalMRV pilot and to perform the initial DigitalMRV
readiness assessment for future projects
• compilation of resources and prospective partners to facilitate future DigitalMRV projects

DigitalMRV has been developed to be more effective than conventional MRV, for example in
terms of credibility, verification quality and time availability of reporting results.

The pilot projects provided many lessons learned for implementing DigitalMRV in different
circumstances. For example, the Copiulemu landfill had digital sensors installed throughout the
site, however, internet connectivity was not reliable. In contrast, the Molina biodigester had only
a few digital sensors and much of the evidence was entered manually into the database.

To facilitate operation of the DigitalMRV solution, it helps if there is a person onsite designated
as the direct responsible individual (DRI), whose first activity is to document the activities with
photos (e.g., check if this cable is connected here..., do this, click here), and then compile these
activities into a manual, which is available in a shared drive or printed and placed next to the IT
hardware (ex: dedicated computer).

The DRI is responsible for the "last mile" onsite, for example to ensure connectivity works as
designed. It is ideal to maintain open communications (e.g., email) to facilitate automatic
monitoring in case of an alert on any outage. The DRI's task is to "document" (e.g., screenshot,

19
etc.) how to fix these outages and add them to the manual. This ensures that the whole operation
is documented, has an owner and that the know-how can easily be transferred (in case the person
leaves or is on vacation).

Furthermore, for an initial project or the initial phase, it is important for a technically competent
partner to be available in the vicinity of the site to be able to respond in the event of critical faults.
As well there needs to be a level of redundancy implemented into the design of the local
integrations, so that if connectivity fails, there are backup systems to ensure that data is still being
made available to the DigitalMRV solution.

DigitalMRV solutions can be crucial for the cost-effective and transparent reporting of greenhouse
gas emission reductions in sectors covered under a country’s NDC with industrial processes
where smart sensors can record data in real-time. The innovative use of DLT to ensure the
integrity of data collected is equally important for future carbon credit markets to function.

20
 7. Next Steps

The pilot projects at the Copiulemu landfill and at the Molina biodigester (“projects”) may continue
to run the DigitalMRV software at no charge. There are many potential options for next steps.

The projects can contact potential partners across the digital carbon value chain, for example:
- Energy Lab Chile on digital MRV services
- Climate Chain Coalition (co-chaired by the UNFCC Secretariat) global multistakeholder
network to identify partners
- EcoRegistry to register mitigation outcomes and carbon credits in an online registry
- ClimateTrade to trade carbon credits on an online climate trading platforms

The Government of Chile can engage with several initiatives on digital MRV and related digital for
climate topics to advocate new policies and frameworks), for example:
- World Bank’s Climate Warehouse (Chile’s Ministry of Energy is already active) for both an
international mitigation outcomes online registry and digital MRV
- Verra for its new digital MRV working group
- IETA for its new digital climate committee
- Open Collaboration hosted by Gold Standard for next generation digital solutions for MRV

Examples of the types of activities of the above initiatives include:

- Working groups and committees (Gold Standard, Verra)
- Research and case studies (UNEP, World Bank)
- Develop frameworks, terminology, processes (Gold Standard, Verra, IWA/GBBC)
- Pilot projects (land use, waste, renewable power)
- Capacity building and events (World Bank Innovate4Climate)

Over the last several years, Chile has been cooperating with its partners in the Pacific Alliance
within the Technical Subgroup on MRV (SGT-MRV). The SGT-MRV has developed a
Coordinating Framework to determine priorities and activities to advance the maturity and
effectiveness of their MRV systems. The main objective is to improve the condition of MRV
systems, for example, shared definitions and taxonomies as well as interoperability, in order to
accelerate climate investments and reduce climate finance risks.

As Chile develops a strategy to guide development of its MRV systems, it is worthwhile to continue
pilots, capacity building, and collaboration to determine which combination of digital solutions
match with the needs and goals of MRV stakeholders in Chile, for example:
- IT Infrastructure
- Online reporting portals
- Information management systems
- Data management systems
- Knowledge management systems
- Digital sensors (“IoT”) as well as remote sensing and mobile sensors

21
 - Distributed Ledger Technology (“DLT”, aka blockchain) for activity data, financial data,
environmental data (e.g., GHG emissions tracking)
- Artificial Intelligence (“AI”), Machine Learning (“ML”) and big data analytics
- Emissions modeling software and emission factor databases

The following sections provide examples of resources, training and potential partners.

22
 8. Resources

Recommended Reading (reports and websites) on Digital MRV and Digital for Climate (Markets,
Finance, Actions…)

What is Digital MRV? – ClimateCHECK, 2020

Open Collaboration White Paper on Next Generation Digital Solutions for MRV – ClimateCHECK,
IOTA, Gold Standard, 2021

Navigating Blockchain and Climate Action 2020 State and Trends – Climate Ledger Initiative,
2020

Climate Ledger Initiative (website)

Climate Chain Coalition (website)

Distributed Ledger Technology for Climate Action Assessment – ClimateKIC, 2018

Blockchain for Sustainable Energy and Climate in the Global South – UNEP, 2022

Using the Disruptive Force of Distributed Ledger Technology to Fight Climate Disruption –
Blockchain Research Institute, 2018

Climate Fintech: Mapping an Emerging Ecosystem of Climate Capital Catalysts – New Energy
Nexus, 2021

Climate Fintech Alliance (website)

Blockchain and Emerging Digital Technologies for Enhancing Post-2020 Climate Markets –World
Bank, 2018

The National Climate Change Metrics System (SINAMECC) – World Bank, 2020

World Bank Climate Warehouse (website)

Protocol for Digitised MRV – EBRD, 2020

Taskforce for Scaling Voluntary Carbon Markets – TSVCM, 2021

Climate Fintech Rise Report – Barclays, 2021

Digital MRV Framework – InterWork Alliance, 2021

Turning digital technology innovation into climate action – ITU, 2019

23
24
 9. Partnering and Training Opportunities

There is a global community of digital and DLT solution providers that are prospective partners.
For example, the Climate Chain Coalition includes over 300 members in over 50 countries.

Figure 5: Linked map listing members of Climate Chain Coalition

Examples of blockchain solution providers for climate that are active in Chile include:
- ClimateTrade
- EcoRegistry and Santiago Climate Exchange
- Energy Lab Chile
- OpenSurface REDD Chain Project (RCP Chile)

There are many different types of blockchains/DLTs, and there are even more training courses
available – including many online options. Here are some examples:
- IOTA
- Hyperledger
- Udemy
- Coursera
- LAC Chain Academy

25
 10. How to Develop a DigitalMRV Pilot and Perform a DigitalMRV Readiness
Assessment

Digital MRV Pilot Project Activities

[My Organization] proposes the following activities to develop a Digital MRV solution [Customer
Organization].

1. Draft a Concept Note for and interact with stakeholders to guide the process for Digital
MRV customization and implementation with [Customer Organization] and relevant
partner situation (e.g., pilot host facility) to validate functionality and obtain stakeholder
approval

2. Perform a Readiness Assessment of the [Customer Organization] and relevant partner

situation in regard to design and develop the Digital MRV solution for [Customer
Organization].
a. Scope Digital MRV solution
b. Obtain and assess project information, e.g., overall information about the project
(based on MRV methodology) such as PFDs, PNIDs, equipment, org charts, and
related activities such as sources of feedstock
c. Assess project data systems, e.g., mesh network, direct-to-cloud communication,
GPS, SCADA, meters/sensors (temperature, humidity, shock), site-connectivity,
system accessibility, monitoring plan, data availability, databases, switches,
routers, PCs, chain of custody, analysis and reporting, AI/ML, track and trace
software, pooling interface, third party integrations, data management systems
and other relevant information systems; as well as defining data system
boundaries
d. Consult with [Customer Organization] to determine need for new sensors and data
systems onsite
e. Document the readiness assessment, e.g., overall results, key findings such as
gaps and possible solutions to enable Digital MRV; as well as action items

3. Design Digital MRV solution

a. Define solution objectives, scope, system requirements, considering relevant
stakeholders ([Customer Organization], partners, customers, stakeholders)
b. Define solution data-flow architecture, software integrations, real-time and live
data transmission, automation and processing requirements
c. Define user interface and user experience (UI / UX), mock-ups for webpage
layouts and functionality, personas

26
 d. Define development and implementation roadmap and timelines

4. Customize Digital MRV solution

a. Develop detailed instructions for engineers, software developers, etc.
b. Build online project report and online verification report with online software
platform
c. Build initial internal version
d. Internal testing, interacting with the project developers as onsite data systems are
commissioned, and identifying areas for improvement
e. Final build and preparation for deployment

5. Integrate, Operationalize and Deploy Digital MRV solution

a. Connect and integrate onsite sensors and data systems with the Digital MRV
solution (in close cooperation with the project developers)
b. Commission and initial activation of the Digital MRV solution
c. Continuous performance monitoring, system fixes and resolving errors/disruptions,
developing improvements
d. Complete online project report and online verification report on online software
platform
e. Continuous supervision and coordination among participants, web-meetings,
reporting
f. Interact with stakeholders to obtain their approval of the operation and results of
the Digital MRV solution for [Customer Organization]
g. Implement links to stakeholders for carbon credits or other solution provider

Schedule

The proposed schedule is presented in the following table.

Table 8: Project schedule

Activities Month to Month Schedule

1 2 3 4 5 6 7 8 9 10 11 12

1. Interact with
Stakeholders

27
Activities Month to Month Schedule

1 2 3 4 5 6 7 8 9 10 11 12

2. Develop Concept
Note for Stakeholders

3. Develop GHG
Quantification
Methodology

4. Develop Concept
Note for DigitalMRV

5. Perform Readiness
Assessment for
DigitalMRV

6. Design DigitalMRV

7. Customize and Build

DigitalMRV

8. Integrate,
Operationalize and
Deploy DigitalMRV

The proposed timeline/schedule represents work that will be performed by [My Organization] and
its partners. The schedule does not reflect the time necessary for stakeholders to respond to
requests and perform reviews required in their methodology approval process.

Budget

The proposed budget for the proposed activities is:

1. Concept Note for Digital MRV (e.g., $2,000 to $5,000)

2. Perform Readiness Assessment (e.g., $10,000 to $30,000)

28
 3. Design DigitalMRV solution (e.g., $20,000 to $70,000)

4. Customize and Build Digital MRV solution (e.g., $100,000 to $350,000)

5. Integrate, Operationalize and Deploy Digital MRV solution (e.g., $40,000 to $80,000)

Overall budget estimate [$$$,$$$ to $$$,$$$].

The prices for activities 3, 4, and 5 are highly variable due to the uncertainty of the full concept
and the dependency on stakeholder approval.

The proposed budget excludes any fees charged stakeholders, e.g., registration fees and
certification fees.

29
Digital MRV Readiness Assessment

Assessment Process Fundamentals

The following outlines the fundamental scope for the purpose of this assessment.

Objectives
1. Define an overarching assessment of the existing information systems in place with regard
to both digital and analog integrations.
2. Assess and recommend any improvements for the existing system to ensure adequate
information availability is being appropriately gathered and disseminated.
3. Define key integrations areas where Distributed Ledger Technology (DLT) will be able to
provide value to the methods data is gathered and transferred in the monitoring, reporting
and verification process.

Scope
1. Overall GHG MRV informational needs as per the [specific project type] MRV Methodology
and related MRV standards
2. Physical SCADA systems active at the [Customer Organization] facility
3. Data acquisition and sensor integrations whether digital or analog
4. Data gathering mechanisms, to include near-real time data solutions such as digital
sensors, manually checked analog sensors, and manual reporting and documentation
processes and their timeframes
5. Sensor data formats and automated reports
6. Data storage systems, monitoring dashboards, and transfer systems and protocols

Information Request

This section outlines the information requested by [My Organization] to assess what is available
from the project, for example, data sources (e.g., measurement devices, paper and electronic
records), data management systems, etc. The information and assessment are used to define
the development plan for the Digital MRV solution. It is acknowledged that some of the information
requested below may be in various formats or combinations depending on the practices of the
project manager. The following table provides a high-level summary - the following sections go
into detailed assessments.

30
Table 9: Information being requested for assessment purposes

Information Comments (explanation, source of information) Status

Requested

PNID, Data Map PNID = process and instrumentation diagram across the Date and
site, e.g., equipment and meters for collection, treatment, extent of the
combustion, generation information
- data process map showing the step by step “data trail”. provided

Site information - Facility site plan / schematics / technical drawings

- fuel and electricity consumption and supplement use, and
monitoring equipment
- organization chart – who is the site manager, technicians...
- project info such as start date, ownership, contact persons,
address/coordinates…
- photos of site, equipment, meters
- information about the main equipment

Feedstocks Types and quantities of feedstocks (on most frequent time

of receiving); Name and location of feedstock sources
- how are feedstocks produced
- how are feedstocks collected and processed at source
- how are feedstocks transported to the site
- what meters/method are used for feedstock quantity
(mass, volume) measured
- what used to happen to the feedstocks before the facility
was built?

Meter Measurement equipment (e.g., flow meters, flow

information composition, pressure, temperature, electricity); digital
sensors; Meter description and operational manuals

Meter Service dates of calibration and maintenance, meter

calibration and ID/location, who performed services.
maintenance
records

IT and Data Electronic Manuals, description of and access to software

Management system, onsite hardware system
System - software used (e.g., to analyze/utilize the data)
- data and record keeping

31
Information Comments (explanation, source of information) Status
Requested

Data Monitoring - data acquisition/logging, collection, frequency...

and Data - procedures performed on the data (e.g., QA/QC such as
QA/QC completeness check, data timestamp, etc.)
procedures and - data transmission, data storage, data security, etc. (use of
systems service providers such as Amazon Web Services...)
- data access
- procedures for missing data
- SCADA system, internet access

32
Review and Results of Information Provided

[Customer Organization] operator/manager provided information which was compiled into a

confidential access-controlled online data room (e.g., Google Workspace).

The overarching diagram outlining the essential data systems that manage the data reporting and
verification process in the facility are outlined throughout this document. It outlines where the field
equipment, or more precisely the sensors are situated in the data management workflow at the
plant.

The major components include the following which perform the described tasks.

1. Field Equipment - Field equipment includes all digital and analog sensors located
throughout the facility for the purpose of monitoring existing processes, gathering data on
those processes, and making it available to external parties for verification. These devices
are then listed in more detail in the document [ID, filename…] in which all devices are
listed by model number and their location in the system.
a. A comprehensive list of measuring devices is outlined in the document [ID,
filename…]
b. The data process map showing the step by step “data trail” is illustrated in the
document [ID, filename…]
c. Based on the data network diagram provided in document [ID, filename…], and
the equipment listed in the file, there are a number of data producing sensors and
gauges that already have their data structured. The values from these devices are
structured in JSON formats at the PLC and sent to the onsite SCADA DB for local
storage and tracking.

Table 10: List of measurement devices

List of measurement devices

Signal Type
Facility Operation Quantity Remarks
Analog Digita Undefine
l d

Operation 1 20 1 6 13

Operation 2 10 0 0 10

Operation 3 25 12 4 9

33
Operation 4 3 0 0 4

Operation 5 15 0 3 12

Operation 6 20 6 6 8

Operation 7 8 2 0 6

Operation 8 5 0 0 5

2. Programmable Logic Controller (PLC) - It is assumed that the sensors are directly
connected to the existing PLC. It is not known how many PLCs currently are in use. For
designing the Digital MRV device integrations, an understanding of the number of PLCs
needs to be known, so that a defined number of Digital MRV host devices can be planned
prior to the project development process. Ideally the Digital MRV host machine will direct
connect to the PLC to consume data from as close to the sensors as possible. These
dedicated Digital MRV host machines would structure the sensor data into the
implementation, then connect to the industrial routing switch to push the data onto the DLT
for integration into the Digital MRV portal.

3. Industrial Routing Switch - It is understood that this device is used to manage the routing
of the data from the PLC. This includes routing the data internally to the SCADA PC
Desktop and encompassing SCADA DB based on [specific software]. For a full
assessment of any necessary changes to the industrial routing switch more information
on the device make and model, as well as the existing Access Control Mechanisms and/or
firewall integrations will need to be ascertained. Based on specifications in the document
[ID, filename…], it appears there are [##} switches present. One in the location #1, and
another in location #2 at the facility. If this is correct, then at least two Digital MRV host
machines would be developed in order to have a local device in each facility for structuring
and capturing the data independently of the overall facility and SCADA systems to give a
proper level of data provenance.

4. SCADA PC Desktop - The make and model of this device is currently unknown and not
necessarily relevant for this assessment. It is best to not integrate directly with the existing
SCADA PC due to potential conflict with existing applications, and the potential for the PC
to not be consistently connected to the network. It is advised that a dedicated unit be
integrated into the existing systems for Digital MRV utilization to avoid any issues that
integration with other compute devices may cause.

34
INNOVATIVE GREENHOUSE GAS MANAGEMENT SOLUTIONS

www.climate-check.com | www.scribehub.com | www.ghginstitute.org | www.digitalmrv.earth