“Adaptation” is one half of the overall Climate Change dialogue which most professionals accept is comprised of two parts: i) “mitigation" or greenhouse gas (GHG) management which deals with the need to expeditiously reduce levels of CO2 and other greenhouse gasses; and, ii) “adaptation” as in adapting to the impacts of human-induced climate change due principally to increased levels of GHGs.
These two components are opposite/complementary sides of the same coin — they are inextricably linked because our failure to mitigate GHGs will result in the need for greater adaptation efforts. More broadly, “adaptation” fits closely with “sustainability” concepts and principles both in terms of its complexity and its interdisciplinary approach. “Mitigation” is easier to measure (in terms of reduction of GHGs) than “adaptation” and is a better fit with traditional regulatory programs.
There is no current unified metric for adaptation, but we have introduced the notion of using “vulnerability reduction” as an adaptation metric through VRCs™. While vulnerability reduction does not cover all of adaptation, it is a useful surrogate and is consistent with the goal of enhancing resilience and “climate proofing” (whether infrastructure, supply chains or corporate policy).
“Ledger” here draws from the phrase “Distributed Ledger Technology” (DLT) which is becoming the accepted way of talking about “Blockchain” technology. In its most basic conceptual form, the Blockchain serves much the same function in business as a traditional ledger of accounts. With the advent of Blockchain technology, certain types of transactions (including those reflecting highly complex contracts) can be completed at great speed and accurately recorded and tracked. It is also important to understand that “Ledger” links up with other related digital solutions like the Internet of Things that collect essential information needed for the Ledger to serve its purpose. Finally, DLT enables stakeholders to engage more effectively with investors and markets in order to innovate and scale climate actions.
DLTs can certainly be understood as a new general purpose information and computation technology, but they are more than just a disruptive new ICT. Rather, they are a new institutional technology of governance that competes with other economic institutions of capitalism, namely firms, markets, networks, and even governments. Thus, blockchains are better understood as a revolutionary new institutional technology of governance.
In the WEF report, “Realizing the Potential of the Blockchain’ by Don and Alex Tapscott, the authors divide the discussion of Blockchain governance into three components: i) platforms; ii) applications; and iii) the full blockchain ecosystem.