A Hierarchical Blockchain of Things Network For Unified Carbon Emission Trading (HBUETS):A Conceptual Framework

Abstract

Climate change is a major issue that has serious disastrous implications on the environment, which if continues on the same pattern, will cause severe consequences. One of the leading causes of climate change is the emissions of harmful gases, especially CO2. In 1997 the Kyoto protocol was signed where 192 countries created a system that monetizes CO2 emissions with an aim to control them. A carbon trading scheme was signed by most countries, but the scheme fell short of its goals due to corruption, manipulation, and lack of integrity. This work presents an improved blockchain-based approach to achieve the objective of reducing carbon emissions. Blockchain’s distinct features such as security, immutability, transparency, traceability, and trust, make it a robust and reliable solution for the in-hand carbon trading market. Previous Blockchain-based proposals were not comprehensive, practical, applicable, or efficient enough to form an effective solution. This research addresses the current gaps and proposes a comprehensive framework that employs smart contracts in Blockchain of Things (BoT) to ensure integrity in the system and reach fair trade status that favors the environment over companies’ cost reductions and profit-making. The result is an optimized carbon emission trading framework, fully transparent with automated trading and control mechanisms.