Experts who met at the recent UN Climate Change Conference in Bonn have reportedly said that Blockchain technology has the potential to help mitigatin
Experts who met at the recent UN Climate Change Conference in Bonn have reportedly said that Blockchain technology has the potential to help mitigating climate change.
“As countries, regions, cities and businesses work to rapidly implement the Paris Climate Change Agreement, they need to make use of all innovative and cutting-edge technologies available.”, said Alexandre Gellert Paris, Associate Programme Officer at the UNFCCC, United Nations Framework Convention on Climate Change.
“Blockchain could contribute to greater stakeholder involvement, transparency and engagement and help bring trust and further innovative solutions in the fight against climate change, leading to enhanced climate actions.”, he added as quoted by UNFCCC`s website.
How Blockchain Technology could help?
According to UNFCCC`s report, Blockchain could potentially be used to improve the system of carbon asset transactions. One example is the collaborative project between IBM and Energy Blockchain Lab. The two companies are working on a Blockchain platform for trading carbon assets in China.
“Recording carbon assets on a public Blockchain would also guarantee transparency and ensure that transactions are valid and settled automatically.”, as the article made clear.
Other use cases may be improved carbon emission trading, clean energy trading, enhanced climate finance flows and better tracking and reporting of greenhouse gas (GHG) emissions reduction and avoidance of double counting.
“Because of its distributed nature, Blockchain could improve governance and sustainability in support of collective action aimed at tackling climate change. As opposed to centralized or decentralized networks, Blockchain prevents monopolistic control over the system. The technology also records transactions openly and permanently, thus fostering transparency and traceability.”, as the UNFCCC`s text stated.
“The United Nations Climate Change (UNFCCC) secretariat recognizes the general potential of Blockchain technology. In particular, transparency, cost-effectiveness and efficiency advantages, which in turn may lead to greater stakeholder integration and enhanced creation of global public goods are currently viewed as the main potential benefits. The secretariat, therefore, specifically supports initiatives that lead to innovation at the intersection of Blockchain and climate. One of such initiatives is the “Blockchain for Climate” hackathon to be organized by the government of Liechtenstein, Cleantech21, INFRAS and ETH Zürich, in the margin of COP23.”, as they added.