“DO Black – the carbon emission limit credit card” is a radical new tool and innovative solution addressing the climate crisis. It’s the first card with a CO2-emission limit, stopping you from overspending, not based on available funds but on the impact caused by your consumption.

The innovation combines three functions. The ability to measure the impact of every transaction (Åland Index), the set CO2-emission limit calculated per country/capita, and the payment system integration of CO2-emission limit overriding the accounts financial credit level.

The technology blocks transactions exceeding the CO2 limit, disables the credit card and notifies the cardholder.

In 2018 Doconomy launched a service called DO, a mobile banking service linked to a payment card, creating a profile of a user’s consumption-based climate impact. This profile is created by applying an impact value to categorized products and services (using Åland Index). The platform allows the user to track, measure and offset their impact through a number of options while providing insights to support behavior changes, through conscious consumption.

The challenge was to position Doconomy with limited resources in a crowded fintech environment, as a credible and unique agent for change. Budget for product development was € 150 000.

The restrictions, regulations and legal, working with financial services and the policies governed by the UNFCCC are rigorous.

There’s a definite, data substantiated, emotional driver connected to climate change, but there’s a lack of concrete solutions and tangible tools that engage and activate consumers.

DO Black is a radical new tool against climate change. It’s the first card with a CO2-emission limit, stopping you from overspending, not based on available funds but on the impact caused by your consumption.

The innovation combines three functions. Adapting the ability to measure the impact of every transaction (Åland Index), the set CO2-emission limit calculated per country/capita, and the payment system integration of CO2-emission limit overriding the accounts financial credit level.

The intention is to make Doconomy perceived as a tangible solution, resulting in awareness, user adoption and productive new partnerships.

2018, March, tech pre-study with Ålandsbanken

2018, June, Tech dev of first platform

2018, September, negotiations with UN

2018, October, com-launch of Doconomy platform

2019, February, MOU from UN

2019, March, Approval from Mastercard

2019, March, Tech dev IRL CO2 limit

2019, April, Production start with Gemalto

2019, April, Launch of DO Black

2019, October, credit cards in the market

How it works:

1. A purchase is made in-store/online using PIN or EMV/Contactless

2. The purchase is processed by the merchant, sent via the Acquirer to Mastercard/MIP and further to the Bank’s Payment Card System.

3. The Payment Card System receives the requests, verifies card, account and PIN, and checks available funds as well as CO2-limit.

4. The Card Transaction Engine calculates the availability of credit as well as CO2 impact through Åland Index.

5. If the purchase exceeds the CO2-emission limit or if there are insufficient funds, the transaction is denied and the card holder is notified. The Card System returns the response to the Merchant (via Mastercards and Acquirer).

The innovation combines three core components.

1. The ability to measure the CO2-impact of every transaction (Åland Index).

2. The set CO2-emission limit calculation. Data provided by UNFCCC and Our World in Data (Oxford). This data is used to calculate the total consumption-based CO2 emissions per capita. This differs between countries and the CO2-limits are updated annually.

3. The payment system integration of CO2-emission limit overriding the accounts financial credit level.

The DO card is currently under production and the DO Black is estimated to be delivered in October.

Long-term outcome is to increase awareness and contribute to drastic reduction of CO2-emissions from consumption with 50% by 2030.

The CO2-limit innovation is a scalable stand-alone application, adaptable to different markets, relevant all credit card and payment solutions. The CO2-limit, although mandatory on DO Black, can be offered as an optional function on existing accounts.

Intention to make Doconomy perceived as a (1) helpful solution, (2) resulting in awareness, (3) user adoption and (4) productive partnerships.

1. “DO Black” is in production with CO2-limit per country/capita calculated.

2. Awareness built with earned media reach of +20.000.000 and keynotes at sustainability/fintech summits worldwide.

3. All initial targets have been exceeded, with 4 000 user registrations in Sweden alone.

4. +40 banks worldwide and credit card companies have reached out to discuss collaboration. Ms. Espinosa, UNFCCC has a publicly endorsed Doconomy and Mastercard has defined Doconomy as “the future of sustainable payments”.