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Tokenisation of Carbon Credits: Blockchain for Climate Action?

Cover des Digitalgesprächs Nr. 56

Major efforts are needed to protect the climate, both to reduce carbon dioxide emissions and to remove CO2 from the atmosphere. And even if the urgency of action is recognised in principle, targeted guidelines and incentives are needed to motivate companies to participate. One instrument that has been used for a number of years is CO2 certificates. This new construct has created a complex field of obligations and rules, voluntary commitments and international cooperation. Both public and private actors are involved. Not only is it difficult to keep track of, but the possibility of issuing, buying and selling certificates has created its own markets in which these certificates almost fulfil the function of securities. Whether they should be treated as such in the eyes of the law – i.e. regulated – has not yet been conclusively clarified.

One idea to make carbon trading easier and more trustworthy would be to use a blockchain. This step is possible, perhaps even obvious – in any case, it would make carbon trading cheap, fast and, presumably, transparent. The first examples of ‘tokenised carbon credits’ already exist. This new development is of interest not only to computer scientists, economists and companies, but also to the world of Law. What decisions are important here and why are international experts looking with interest at the European legal area and its efforts to regulate markets for crypto assets?

Dominik Skauradszun is a professor of civil law, civil procedure and corporate law at the University of Applied Sciences in Fulda and a judge at the Oberlandesgericht Frankfurt am Main. He also researches and teaches at the University of Bielefeld and Nottingham Trent University, and advises on procedures and institutions at national and EU level. In this episode of Digitalgespräch, the expert on the legal aspects of tokenisation explains what CO2 certificates are, what the differences are, what the markets for trading these certificates look like and which participants fulfil important functions. He will explain why blockchain is a suitable technical environment for this and what the consequences of this digitalisation step will be. Skauradszun discusses with hosts Marlene Görger and Petra Gehring which problems can be solved, which will remain, whether the high level of transparency in the transactions is an advantage or a disadvantage from a corporate perspective – and why it is necessary for lawyers to research the tokenisation of CO2 certificates.

Episode 56 of Digitalgespräch, feat. Dominik Skauradszun of Hochschule Fulda
Further informationen:

Link to Dominik Skauradszun’s profile on the Fulda University of Applied Sciences website: https://www.hs-fulda.de/wirtschaft/ueber-uns/professuren/details/person/prof-dr-dominik-skauradszun-llm-2-483/contactBox

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The podcast is in German. At the moment there is no English version or transcript available.

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A “Virtual Human Twin” made from Personal Data? On the Way to the Future of Healthcare

The term “virtual twin” originates from engineering. There, it describes digital models that are used to map, optimise and simulate real technical systems or processes in what is known as the Fourth Industrial Revolution. Such models are widely used today. What has not yet been realised is the idea that, in addition to technical systems, individual people or groups could also have such virtual representations from which their “system states” can be read. Such a holistic model could be used to optimise the overall state of “health”, for example. A large amount of data and complex software would be required to create such a “twin”, maybe even including “behaviour”. Corresponding ideas exist, and some of the visions go so far as to imagine the digital image of an entire person with body data and mental characteristics. The hope is that it will be possible to predict the development of a person’s state of health or plan individualised treatment in the event of illness. A “virtual human twin” would also be able to provide behavioural advice for optimal bodily functions and performance. It would potentially accompany its human counterpart throughout its life, measure it and also shape it through its influence. Until now, such ideas have been regarded as mere pipe dreams by experts. However, the EU is now actually planning to introduce “European Virtual Human Twins” for the medical care of its citizens – in any case, the path for this opening up. Is such a vision compatible with our current data protection laws? And what does this mean for a socially just and democratic healthcare system if it is to respect different lifestyles and values?

Malte Gruber is Professor of Civil Law and Philosophy of Law at Justus Liebig Universität Gießen and specialises in information law and the law of the digital economy, as well as technology law and the law of life sciences. In this episode of Digitalgespräch, the expert describes which concepts of “virtual human twins” play a role in current debates and developments, what motivates the EU Commission’s initiative and which legal and social questions arise if corresponding visions are to be realised. Together with hosts Marlene Görger and Petra Gehring, Gruber discusses realistic scenarios between hype and dystopia, which aspects are still receiving little attention in the current debate and what the vision of the future medical product “virtual human twin” reveals about our current relation to our bodies.

Episode 50 of Digitalgespräch, feat. Malte Gruber of Justus-Liebig-Universität Gießen, 16 April 2024
Further informationen:

Zur Ankündigung der “European Virtual Human Twins Initiative” der EU Kommission: https://digital-strategy.ec.europa.eu/en/policies/virtual-human-twins

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The EU’s AI Act: How it came about and how it regulates AI

With the AI Act, the EU has launched the first comprehensive regulatory framework for “Artificial Intelligence” systems. An ambitious, challenging and urgent endeavour: Rapid technological development is taking place globally, and mostly outside of Europe. AI is already being used in all areas of life, with undeniable economic benefits, but also obvious risks for liberal democracy and its values. Which technologies are considered “Artificial Intelligence”, though, is not clearly defined. Rather, this fuzzy buzzword covers all kinds of IT and robotic systems with capabilities that go beyond those of conventional automation. A legal framework, such as the one that is about to be introduced in Europe, must be wisely drafted and flexible in order to do justice to this complex situation. Has the European AI regulation achieved this?

Domenik Wendt is Professor of Civil Law, European Business Law and European Law at the Frankfurt University of Applied Sciences and an expert on AI law. He has closely followed the development of the AI Act from the very outset, adopting both an academic and a practice-orientated perspective. In this episode of Digitalgespräch, he describes the process the regulation has gone through: From the context of the EU commission’s first initiative and its underlying idea and objective, to the heated discussions between the stakeholders involved with their various interests and basic political stances, to the content of the final draft that is now set to be adopted. Together with hosts Marlene Görger and Petra Gehring, Wendt discusses how the AI Act is perceived and evaluated internationally, whether critics are right to point out weaknesses, and how companies, lawyers and scientists have to take action in order to bring this abstract legal framework into reality.

Episode 48 of Digitalgespräch, feat. Domenik Wendt of Frankfurt University of Applied Sciences, 5 March 2024
Further informationen:

Link to the press release of the Federal Ministry of Justice dated 2 February 2024: https://www.bmj.de/SharedDocs/Pressemitteilungen/DE/2024/0202_KI-VO.html?cms_mtm_campaign=linksFromNewsletter

Website of Research Lab for Law and applied Technologies: https://www.frankfurt-university.de/en/about-us/faculty-3-business-and-law/research-and-transfer/research-labs/rellate/

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AI and Liability: Who is responsible for Mistakes made by Artificial Intelligence?

The risks associated with the use of AI are widely discussed. Examples range from possible misdiagnoses in medical treatment and discrimination in job searches to dangers for democratic systems or violations of human dignity. The possibly existential threats in particular, which are said to emanate from generative AI and which its creators themselves never tire of pointing out, are a source of heated debate. However, AI systems do not emerge and act on their own: Humans are always involved in their development, dissemination and use, at least for the time being, and humans still bear responsibility for how the systems are set up, what they do and what happens to the results. But are they also liable when mistakes happen? It is not easy to decide who is held responsible if an AI system causes damage, and our legal situation does not yet have any clear answers to this question. This is about to change soon: With the AI Act, the EU is currently in the process of establishing product liability for AI. What are the aspects which lawyers and legislators need to address when it comes to liability issues involving the use of AI? And how well is this upcoming AI law compatible or at odds with our existing understanding of the law?

Carsten Gerner-Beuerle is Professor of Commercial Law at University College London. The Law and Economics scholar is an expert in International Corporate, Private and Capital Market Law and has contributed to/weighed in on regulatory policies of the EU Commission and the EU Parliament. In this episode of Digitalgespräch, he describes the unclear liability situation in which AI is used so far and how it affects current practice. He explains the legal background to this complex situation and describes how different legal systems deal with risks arising from the use of AI. Furthermore, he outlines the strategy the EU is pursuing with the AI Act. Together with hosts Marlene Görger and Petra Gehring, Gerner-Beuerle discusses the characteristics of AI that distinguish it from “ordinary” products and how liability is usually addressed, the typical risks associated with the use of AI systems in general and the extent to which the concept of liability could nonetheless function as a regulatory instrument.

Episode 47 of Digitalgespräch, feat. Carsten Gerner-Beuerle of University College London, 13 February 2024
Further informationen:

Link to Carsten Gerner-Beuerle’s profile: https://profiles.ucl.ac.uk/64070-carsten-gernerbeuerle/about

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Arena of IoT: A Football Stadium as a Digital Real-World Laboratory

The so-called “Internet of Things” means that digital processes in our environment run as if by themselves. Networked devices trigger real events, collect a wide variety of data and, combined with sensors, microphone and camera technology, provide an unimaginable amount of information. This networking can make our work easier, or at least they change the way we work, and creates completely new everyday tasks, new opportunities, but also its own conditions affecting our lives: it transforms jobs and leisure activities, changes our mobility, how we communicate and – sometimes more, sometimes less subtly – what we focus our attention on. Actually implementing innovations here is an exciting and complex practical task. What opportunities do we have to try things out and negotiate, while at the same time utilising “real”, ready-to-use technologies? The stadium of the Eintracht Frankfurt football club has been serving as such a testing ground for the Rhein-Main region for some time now. A large sports venue and the management of football events as a laboratory for digitalisation – with respect for the traditions and values of the club and the demands of its members and fans. How this goal can be achieved and the ideas, projects and goals behind the project Arena of IoT are the subject of this episode of Digitalgespräch.

Dr Oliver Bäcker is head of the Arena of IoT at EintrachtTech, the digital subsidiary of the sports club Eintracht Frankfurt. In this episode of Digitalgespräch, the specialist in innovation and technology management provides insights into specific projects and developments in and around the stadium. Bäcker describes the background to Eintracht Frankfurt’s particular digital focus, how the club’s values and interests are incorporated into the design of specific innovations and how members and fans are involved in the process. With hosts Marlene Görger and Petra Gehring, Bäcker discusses which projects are attracting the most attention from politicians and the public, whether the sporting competition between football clubs is also extending to th field of digital innovation – and what significance the analogue experience continues to have and retain.

Episode 46 of Digitalgespräch, feat. Oliver Bäcker of EintrachtTech, 23 January 2024
Further informationen:

Link to information on EintrachtTech and the Arena of IoT: https://klub.eintracht.de/eintrachttech/digitalzentrum-arena-of-iot/

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Digital Forensics

Reading out data on a supposedly destroyed hard drive, dismantling the on-board computer of a car involved in an accident, finding hidden files on a smartphone – in the digital society, investigators often need the support of IT experts to solve crimes. There are special training programmes for “digital forensics” that combine technical expertise with legal knowledge. However, compared to the established practices of careful securing and intelligent evaluation of evidence, for which traditional forensics builds on the experience of entire generations of investigators and scientists, forensic computing is a very young discipline that has to be very adaptable: Innovations and new systems come with new classes of digital traces – but also challenges for research and practice in digital forensics, because forensic scientists and police officers must be trained for digitality in the long term.

Felix Freiling is Professor of IT Security Infrastructures at Friedrich-Alexander-Universität Erlangen-Nürnberg and a member of the Board of Directors of the Bavarian Research Institute for Digital Transformation (bidt). In this episode of Digitalgespräch, the sought-after expert explains how to properly handle digital evidence and what else is part of digital forensics training, talks about practical examples and makes it clear where data is generated in our everyday lives that could be analysed if necessary. He talks about the role that falsifiability of digital traces plays in reality, whether AI supports investigations, how well criminals cover their digital tracks and where the knowledge of forensic computer science is still useful. Together with hosts Marlene Görger and Petra Gehring, Freiling discusses what the omnipresence of digital traces means for privacy, how responsible digitalisation can help think about crime on both a small and large scale – and what the digital equivalent of a DNA trace could be.

Episode 45 of Digitalgespräch, feat. Felix Freiling of Friedrich-Alexander-Universität Erlangen-Nürnberg, 12 December 2023
Further informationen:

Link to the Research Training Group ‘Cybercrime and Forensic Computing’ at the Friedrich-Alexander-Universität Erlangen-Nürnberg: https://www.cybercrime.fau.de/research-training-group-2475-cybercrime-and-forensic-computing/

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From policy debates to election campaigns: digital communication of political parties

Our everyday communication has become radically digitalised during the COVID-19 pandemic. Naturally, political parties and their members have also had to reorganise themselves: Entire party conferences were held virtually at times, and debates and decision-making also had to succeed with digital tools, which are now being retained and continue to supplement face-to-face dialogue. But even beyond the exceptional situation of a pandemic, parties are experimenting with opening up new opportunities for collaboration as part of modernisation measures. Attempts are being made to reach voters on social media, but above all to improve the inner organisation of the party through digitalisation. How the political parties in Germany are approaching their own digital transformation, what their priorities are and what their respective prerequisites are, of course, varies greatly: the number of members, budgets and different political guiding principles all play a role.

Isabelle Borucki is Professor for Methodology and Philosophy in digital transformation at Philipps-Universität Marburg and researches political organisations in particular. In this episode of Digitalgespräch, the expert describes her observations from studies and surveys that provide insights into the current digitisation processes of political parties. She explains the similarities and differences between the parties and contextualises them in terms of their respective characteristics and framework conditions. With hosts Marlene Görger and Petra Gehring, Borucki discusses how digitisation can make participation in political processes easier but also more complex, how members and established structures react to digitisation processes, what challenges social media poses for PR departments – and how parties have responded to the technical possibilities for digital election campaigns.

Episode 44 of Digitalgespräch, feat. Isabelle Borucki of Philipps-Universität Marburg, 21 November 2023
Further informationen:

To the “Campaign Watch” project of the NRW School of Governance: https://www.campaign-watch.de

To Isabelle Borucki’s website: https://isabelleborucki.de

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Kryptoregister und technische Grundlagen der Tokenisierung

Workshop

7 November 2023, 13:00 – 15:00 CET
Online via Zoom

Internal workshop hosted by the project group Tokenized Finance (ToFi).

programme

to ZEVEDI project group Tokenized Finance (ToFi)»

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Digitality and the Democratic Mandate of Public-Service Broadcasting

In the age of the internet, television and radio have lost their status as monopoly mass media. However, the public broadcasters have retained their important role for democracy and their constitutional tasks: Primarily financed by the broadcasting fees of the citizens, they are supposed to inform, entertain, reflect diversity of opinion and different realities of life and be relevant to as many people as possible with a high-quality and diverse programme. For a long time, they have therefore also been present in the social media and on online platforms, with content elaborately adapted to special target groups and their media usage habits. However, the public function is not limited to programming, relevance and reach: the archiving of broadcasts as historical documents of current events is also part of this responsibility, as is the provision and maintenance of media infrastructure. The latter is not only used by the broadcasters themselves, but also by private media professionals – and is of central importance for disaster control. It is clear that the internet and digitalisation are creating pressure for transformation in many areas. What is working well, what still needs to be done – and what is at stake?

Florian Hager is the director of Hessischer Rundfunk, one of Germany’s nine regional public-service broadcasters. In this episode of Digitalgespräch, he describes the urgent questions and challenges the broadcaster is facing. With hosts Marlene Görger and Petra Gehring, Hager discusses the significance of the public broadcasters’ mandate in the face of digitality, where the course needs to be set, where the commitment of politics and society is required – and what role transmission masts and FM radios still play in 2023.

Episode 43 of Digitalgespräch, feat. Florian Hager of Hessischer Rundfunk, 31 October 2023
Further informationen:

Link to the hr-Act on the website of Hessischer Rundfunk: https://www.hr.de/unternehmen/rechtliche-grundlagen/das-hr-gesetz-v1,hr-gesetz-100.html
Link to the website of the German Broadcasting Archive:
https://www.dra.de/de/

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Modelling, Simulation, Optimization – the Digitalization of our Energy Supply Network

Our everyday life is built on the certainty that electricity will be reliably available at all times. Fluctuations or even failures are not foreseen. When we are not dealing with disaster prevention or imagining doomsday scenarios, we rarely think about how vulnerable we are in our dependence on energy supply. Especially gas grids are not only huge and complex, but they change and require permanent readjustment and stabilisation. Further developing and optimising the energy grid with a view to new energy sources and changing priorities, monitoring its function and making it resilient to a multitude of risks is a highly complex task: we not only want to understand how different energy sources interact, but we also need to make reliable predictions and must be able to react immediately if something unexpected happens. This requires physical models, mathematical methods and data analysis – also in real time. Simulations and calculations take into account developments on the global energy market, the weather and the condition of the pipelines as well as the quality of energy sources or the consumption of industry and private households. How do you make this multi-dimensional system manageable?

Prof. Dr Alexander Martin is a mathematician. He heads the ADA Lovelace Center for Analytics, Data and Applications at the Fraunhofer Institute for Integrated Circuits IIS and is founding vice president of the Technische Universität Nürnberg. In his work, he deals with modelling and simulation in optimisation issues and brings “Artificial Intelligence” into application. In this episode of Digitalgespräch, the expert explains how our energy network is structured and what considerations underlie the models and methods with which he and his colleagues work. He describes the benefits of digitalisation, what data is needed and where AI can come into play. With hosts Marlene Görger and Petra Gehring Martin discusses which objectives and political debates influence the development of the gas network – and which economic and ecological costs are associated with the collection, storage and use of data.

Folge 41: Digitalgespräch feat. Alexander Martin of Technische Universität Nürnberg, 19 September 2023
Further informationen:

Link to the profile of Alexander Martin on the webseite of the Technische Universität Nürnberg: To the profile of Alexander Martin on the website of the Nuremberg University of Technology: https://www.utn.de/person/prof-alexander-martin/

Link to the website of the ADA Lovelace Center for Analytics, Data and Applications at the Fraunhofer Institute for Integrated Circuits IIS: https://www.scs.fraunhofer.de/en/focus-projects/ada-center.html

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The podcast is in German. At the moment there is no English version or transcript available.