Blockchain-Enabled Carbon Markets Advancing Transparency and Trust in Climate Finance

Abstract

The urgency of climate change has increased the need for effective mechanisms to reduce emissions and mobilize climate finance. Carbon markets provide a market-based approach through trading carbon credits from verified projects, but they face issues such as low transparency, double counting, weak monitoring, and lack of trust. This chapter examines how blockchain technology can address these challenges by improving transparency, traceability, and efficiency in carbon trading systems. Based on a conceptual review and global case studies, it highlights how blockchain enhances tracking, verification, and trading of carbon credits. The findings suggest that blockchain strengthens monitoring and reporting, reduces fraud risks, and improves accountability. It also enables more accessible and efficient carbon markets with broader stakeholder participation. The chapter concludes that blockchain-enabled carbon markets can enhance credibility and support the transition to a low-carbon economy.