An End-To-End IoT–AI–Layer-2 Blockchain Framework for Real-Time MRV & Autonomous Carbon-Credit Tokenization in Industrial CCUS

Abstract

As global energy systems pivot toward net-zero, Carbon Capture, Utilization and Storage (CCUS) has emerged as a foundational tool to mitigate industrial emissions (Abu Zahra et al. 2007; Boot-Handford et al. 2014; IEA 2020). However, the effectiveness, financeability and scalability of CCUS projects are severely hindered by traditional Monitoring, Reporting and Verification (MRV) workflows (IEAGHG 2017; U.S. DOE 2018–2023; Verra 2023). These legacy processes are typified by siloed data collection, infrequent audits, manual record reconciliation and a lack of trust between stakeholders. This results in substantial verification delays, compliance risks and a sluggish, opaque carbon market where the link between physical decarbonization and financial value is weak (ISO 2018; Dutta et al. 2021; Hartmann et al. 2023). Although real-time IoT sensing, AI-powered analytics and blockchain-based recordkeeping have each been explored independently (Garcia Freites and Jones 2021; Wang et al. 2019; Hartmann et al. 2023), no prior framework has fused these into a seamless, robust and self-governing digital pipeline for CCUS MRV and carbon-credit management at industrial scale (Hütten et al. 2022). This paper introduces a novel architecture that: Deploys dense, high-fidelity IoT sensor networks and edge-compute nodes across the full CCUS value chain (Abu Zahra et al. 2007; IEAGHG 2017; Dutta et al. 2021);Leverages advanced, multi-tiered AI/ML for operational intelligence, predictive reliability and financial optimization (Breiman 2001; Hochreiter and Schmidhuber 1997; Chen et al. 2019; Bender et al. 2021);Employs a hybrid off-chain/on-chain data model for performance, privacy and regulatory-grade auditability (Garcia Freites and Jones 2021; Boneh and Shoup 2020; NIST 2024);Harnesses Layer-2 blockchain with decentralized oracles and smart contracts to automate MRV validation, progressive credit minting, escrow and transparent marketplace integration (Buterin et al. 2014; zkSync 2024; Bai et al. 2021; KlimaDAO 2024).