Smart Contracts as a Legal Tool in Carbon Credit Transactions: A Legal Analysis

Abstract

Currently, climate change has become one of the most pressing issues facing the world. It affects everyone on this planet and could have serious long-term consequences for humanity if left unresolved. Carbon credit trading is one of the measures contributing to emission management. With technological development, carbon credit trading can be conducted via smart contracts. The strengths of blockchain technology, such as transparency, secure record-keeping, and decentralization, are advantages for carbon credits. However, there are still issues that need to be addressed. This article researches smart contracts as a legal tool in carbon credit trading and identifies areas for improvement.