by With rising temperatures, melting ice caps and more frequent and intense extreme weather events, the effects of climate change are becoming more obvious. There is an urgent need to prevent climate change and numerous technologies and methods are being researched to do so. Blockchain technology is one of these possibilities and it can be very effective in the fight against climate change.
At its core, blockchain is a decentralized ledger that can securely and transparently record transactions and store data. This technology has already been used in a variety of applications, from cryptocurrencies to supply chain management. However, its potential applications in the fight against climate change are still being explored.
Here are some ways blockchain can help fight climate change.
Come on, global warming!
United Citizens Organization launched an initiative during Cop26 to help fight climate change using blockchain technology. https://t.co/4FPlyHP2qb
— Cointelegraph (@Cointelegraph) November 11, 2021
Creation and management of carbon credits
Creating and administering carbon credits is one way blockchain technology can help fight climate change. A tradable permit called a “carbon credit” allows the holder to emit a certain amount of greenhouse gases, such as carbon dioxide. To reduce emissions, businesses and organizations can buy carbon credits that can be traded on the market.
The management of carbon allowances can become more transparent and effective thanks to the use of blockchain. All carbon transactions can be tracked in real time and documented via a decentralized ledger. In this way, fraud can be avoided and the intended use of carbon allowances can be guaranteed.
The management of carbon allowances can become more transparent and effective thanks to the use of blockchain. All carbon transactions can be tracked in real time and documented via a decentralized ledger. In this way, fraud can be avoided and the intended use of carbon allowances can be guaranteed.
Promote renewable energy sources
By establishing a decentralized energy infrastructure, blockchain technology can also encourage the adoption of renewable energy sources. Without the help of a centralized organization or utility company, people and businesses can buy and sell renewable energy directly from and to each other through a decentralized power grid. This can support the adoption of renewable energy sources such as solar and wind power and reduce dependence on fossil fuels.
Related: Bitcoin miners as energy buyers, explained
Supply chain management
Supply chain management is another area where blockchain technology is being used to combat climate change. Companies can find opportunities to lower their carbon footprint and make more sustainable decisions by using blockchain to track the carbon footprint of products and materials throughout the supply chain. By promoting sustainable production and consumption practices, greenhouse gas emissions can be significantly reduced.
Monitoring and reporting of carbon dioxide emissions
Monitoring and reporting carbon emissions from multiple sources such as businesses, vehicles and structures can also be done using blockchain technology. Governments and organizations can more accurately measure and report their emissions and monitor progress towards their emissions reduction targets by using a decentralized ledger to track emissions.
Related: The carbon market is getting a much-needed boost thanks to blockchain technology – Web3 exec
The challenges of implementing blockchain to reduce carbon emissions
The use of blockchain technology to combat climate change is not without difficulties and limitations. The requirement of standardization and compatibility is one of the obstacles. Blockchain needs a uniform set of rules and protocols that all stakeholders can agree to in order to effectively manage carbon credits and track emissions.
The scalability of blockchain technology poses another difficulty. Many blockchain networks currently have a small capacity and can only process a small number of transactions. If blockchain is widely used to manage carbon credits or track emissions, this could become a bottleneck.
Finally, there are issues with the use of energy in blockchain technology. Some of the environmental benefits of adopting blockchain to combat climate change may be outweighed by the energy consumption required for blockchain transactions.
The road ahead
While blockchain technology is still in its infancy in terms of adoption and development, its potential applications in tackling climate change are promising. Blockchain can accelerate the transition to a low-carbon economy by increasing transparency, efficiency and accountability in carbon regulation and encouraging sustainable practices.
However, for blockchain to be successful in the fight against climate change, there are also difficulties and limitations that must be overcome. Ultimately, a combination of technologies and solutions will be required to address the complex and urgent challenge of climate change.
