> For the complete documentation index, see [llms.txt](https://valuex.gitbook.io/valuex-whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://valuex.gitbook.io/valuex-whitepaper/value-x-whitepaper/1..md). # 1. Background Emissions regulation now affects corporate cash flow, which calls for infrastructure that can verify emissions evidence and check whether records have been changed.
### 1.1 Carbon Regulation and Corporate Costs The EU CBAM took full effect on January 1, 2026. Importers of covered goods must become authorized CBAM declarants, declare their embedded emissions as verified figures and then surrender certificates. Supply chain due diligence rules now also require suppliers to provide evidence of their emissions, and verified emissions affect a product's carbon-related costs and its price competitiveness. Carbon emissions affect a company's finances. ### 1.2 Recording and Auditing ESG Data Annual reports keep only aggregated figures, so individual source data is hard to trace, and past figures can be recalculated without any record of the change. Greenwashing is the result of a structure that does not allow verification. A ledger is needed that can be audited at any time: like accounting books, it cannot be altered after the fact, and it also keeps the basis for each calculation. ### 1.3 The Gap Between Voluntary and Compliance Markets In the voluntary carbon market, overestimation, double counting and unverified baselines have lowered the credibility of reduction records. Prices have not fully reflected whether reductions actually took place. Without infrastructure that automatically checks the source, the formula version and any duplication, the reliability of submitted information is hard to confirm. ### 1.4 Limits on Using Individual Reduction Records The reductions that many participants accumulate by walking or taking public transit can reach a considerable scale. Yet there are still only limited ways to measure and record these reductions without duplication and to turn them into reduction records that companies can use. As a result, individual reduction records are not connected to corporate demand for reduction records. Moreover, existing point programs have no proof that they reflect actual reductions, which makes it hard for them to serve as this link. ### 1.5 Why VLX Was Developed VLX was started to resolve the lack of connection among these three areas (corporate ledgers, verification infrastructure for markets, and a system for linking individual reductions) with a single protocol. First, VLX is designed so that data signed by devices is committed to the ledger without manual entry (the ledger holds a hash and a reference key, not the original data). VLX also builds an app in which reduction records can be used right away. Placing the entire process on one chain in this way keeps it continuous from measurement to distribution. ![](https://4111024654-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fw7YoFCbsDz1NbkOTHoHH%2Fuploads%2FJQCPTCu81WNBJ571Wnjq%2FChatGPT%20%EC%9D%B4%EB%AF%B8%EC%A7%80%202026%EB%85%84%209%EC%9B%94%2028%EC%9D%BC%20%EC%98%A4%ED%9B%84%2012_50_44-1.png?alt=media\&token=891de837-46ca-4a83-9c57-e3467e8e1512) ***