NFT-Based System for Accurate Carbon Emission Tracking: Addressing Double Counting Issues in Supply Chain Management

Abstract

This study introduces a system using Non-Fungible Tokens (NFTs) to track and report carbon emissions in supply chains accurately. It addresses the problem of double counting, which occurs when the same emissions are recorded multiple times due to product segmentation and integration. Our system uses blockchain technology to ensure NFTs are traceable and tamper-proof, enhancing data reliability. The system includes three types of NFTs: Parent NFTs (P-NFTs) for energy and raw material data, Child NFTs (C-NFTs) for manufacturing emissions, and Integration NFTs (I-NFTs) that compile the carbon footprint of final products. This method improves accurate emission tracking and transparency across the supply chain.