Blockchain for Carbon Credits and Emissions Reduction

Abstract

The adoption of blockchain in the carbon credit market can facilitate a transparent and efficient system for offsetting emissions and promoting a sustainable future. This chapter of the book delves into the role of carbon credit markets and the potential of blockchain technology to enhance their effectiveness, particularly in the building sector. It explains how carbon markets incentivize emission reductions by allowing organizations to offset emissions and invest in projects to generate verified carbon credits. The content discusses blockchain’s distributed ledger mechanism for ensuring carbon trading systems’ secure, transparent, and traceable transactions. It further explains the method of blockchain’s operation. The initiatives and projects discussed in this content indicate that developing an open-source blockchain platform, government pilot plans, and executive projects like AirCarbon can enhance capabilities to reduce carbon emissions. However, as a solution for setting the carbon credit market, it is recommended that it be standardized through a globally governed multi-platform. This will enable the adoption of blockchain in carbon credit markets, which is based on collaboration and cooperative actions among the global leading actors in environmental protection.