Digital Infrastructure for Sustainable Consumption and Production: Solutions for Actions

The project team introduces the discussion context, definition of terminologies (“data system”, “domain”, “methodology”), the use case of connecting the three domains, and solutions in addressing the challenges of data systems.

Group 1: Political and technical feasibility of building a cross-domain federated data system .

Monitoring experts in March/April expressed the desire for a reliable system that allows for robust data generation, sharing. The goal is to conduct data analysis and push for data communication and utilization by stakeholders. We note the increasing number of federated data infrastructures (HDX, WESR) within many domains. Solutions in this nature designate a responsible body to mobilize resources and national inputs and to take care of the data factory of monitoring schemes.

For the sake of discussion, participants are encouraged to focus on the design of a transparency mechanism to host a data platform that federates environment data, value chain information and national economic policies relating to palm oil and beef, as a starting point. Different from some existing federated data systems, this mechanism needs to mobilize data exchange with data owners (public and private) with different concerns. Questions discussed include the pay-off of supporting such federated systems, resource and cost implication, institutional set-up, and incentive mechanism for private data sharing.

Insights from data scientists is expected on the technical and deployment cost of federated data systems of multiple layers as well as the application of privacy computing to serve for private data sharing. Insights from public policy experts is expected on political feasibility to organize such a scheme, building on existing transparency mechanisms in climate, nature, value chain and policies. Insights from monitoring experts is expected on public-private financing of such data systems, noting the cost of ESG compliance and its vague link with compliance of substantive “green” obligations.

Group Members: Simon Evenett, Yaxuan Chen, Christ West, Fulai Sheng, Susanne Katus, Alexander Kreutz, Dimitris Papadopoulos, Jan Dirk Wegner

Group 2: Connecting the three domains through building on existing tools

The context for this solution is that a federated system might not be politically feasible given its resource implication and other demands (see group 1). Business players, national governments and citizens still need to address their daily information pain, while fragmented transparency mechanisms and related data systems are given. There are data tools in the market to connect environmental data with value chains, environmental data with public policies or products, and services in international trade with economic policies. However, there are limited examples of connecting the three domains.

The group discussion is on whether it’s feasible to design an application connecting existing data systems and whether it would be business desirable (and affordable) or fulfill the interest of public procurement of governments. This builds on points relating to the capacity of data sciences in coming over the challenges of data format, having API exchanges and automating attribution methodologies.

This group is equipped with monitoring experts of three domains. Discussions include guiding the project team on the data source and tools for building a use case of connecting the environmental performance of two value chains (palm oil, beef) and national economic policies on each segment of the value chain. Further discussion includes to what extent a use case of connecting three domains could provide incentive for data work on the ground, address the issue of data quality and ensure data sharing and ultimately enabling decisions and actions. Discussion of building collaborations of existing monitoring tools of experts is also encouraged.  

Group Members: Kurt Stockinger, Ana Fernandez Vergara, Robert Guralnick, Maria Ricart, Meike Schröder, Michal Nachmany, Inna Amesheva, Brandon Day, Martin Braschler

Group 3: A Web 3.0 based incentive mechanism

For this group, participants are encouraged to read examples such as Amazon Soy Moratorium, EU regulation on deforestation-free products and to understand how the monitoring schemes and data work serve as key components of compliance and implementation of green economic policies or commitments. 

Transparency is the central pillar of global governance systems of climate, nature and economy respectively. Despite the resources invested into the monitoring schemes, transparency suffers from the tragedy of public goods, being undermined by behavior of non-compliance, which in turn compromises the progress of transformation towards sustainable production and consumption. 

It’s time to rethink the incentive mechanism behind transparency systems and its effectiveness for the enforcement of green economy policies. The overall question is: Can the value of transparency be made explicit?  Solutions in this nature have several features. Instead of relying on limited public funding sources or serving only for players who can afford the data infrastructure, data work that addresses the information pain point of stakeholders can be rewarded. The contribution of data work in changes in production, consumption behaviors and policy actions should be identifiable and be considered as an asset with a potential of value increase. Instead of relying on public pressure, stakeholders who are investors in the virtual assets of monitoring schemes can be more incentivized to take action. If the Web 3.0 technology represents the evolution of the internet from “to read” “to write” to “to own”, how should a viable incentive mechanism look like in order to transform monitoring data (e.g. using palm oil and beef value chains as example) into actions in an inclusive manner?

Group Members: Ce Zhang, Angus Hamilton, Thomas Streinz, David Dao, Bruce Pon