Optimized application and potential impact of blockchain technology in carbon trading

Authors

  • Wenhan Zhou

DOI:

https://doi.org/10.61173/7p5cjg77

Keywords:

blockchain technology, Carbon trading, Green finance

Abstract

The integration of blockchain technology with carbon trading opens up new avenues for carbon market optimization. The use of blockchain technology to address climate change is the main topic of this research. Using case studies as a basis, it examines how blockchain technology might help optimize the carbon trading market. It is discovered that the drawbacks and inefficiencies of the carbon trading market can be technically addressed by the current blockchain technology. Blockchain technology has been instrumental in increasing the market’s transparency and streamlining the trading procedure for carbon offsets. Green finance and blockchain technology work together to lessen “greenwashing” behavior, and their cooperation enhances the carbon trading market. This research offers a valuable resource for the enhancement and novelty of carbon trading methods, the growth of environmentally conscious financial enterprises, and the incorporation of the carbon market through the utilization of blockchain technology.

References

[1] . Catalini, C. (2018). Blockchain technology and cryptocurrencies: Implications for the digital economy, cybersecurity, and government. Georgetown Journal of International Affairs, 19, 36-42.

[2] . Chen, D. (2018). Utility of the blockchain for climate mitigation. The Journal of The British Blockchain Association, 1(1).

[3] . Dorfleitner, G., & Braun, D. (2019). Fintech, digitalization, and blockchain: Possible applications for green finance. In The rise of green finance in Europe: Opportunities and challenges for issuers, investors and marketplaces (pp. 207-237).

[4] . Enterprise Times. (2018, May 16). Veridium collaborates with the IBM blockchain platform on carbon credits. Retrieved August 8, 2024, from HTTPS://www.enterprisetimes. co.uk/2018/05/16/veridium-collaborates-with-ibm-blockchainplatform-on-carbon-credits/

[5] . Gunay, S., Sraieb, M. M., Kaskaloglu, K., & Yıldız, M. E. (2023). Cryptocurrencies and global sustainability: Do blockchain sectors have distinctive effects? Journal of Cleaner Production, 425, 138943.

[6] . Howson, P. (2019). Tackling climate change with blockchain. Nature Climate Change, 9(9), 644-645.

[7] . Huang, H., Peng, X., Lin, Y., Xu, M., Ye, G., Zheng, Z., & Guo, S. (2023). Scheduling the most valuable committees for the shared blockchain. IEEE/ACM Transactions on Networking, 31(6), 3284-3299.

[8] . Luu, L., Narayanan, V., Zheng, C., Baweja, K., Gilbert, S., & Saxena, P. (2016, October). A secure sharding protocol for open blockchains. In Proceedings of the 2016 ACM SIGSAC Conference on Computer and Communications Security (pp. 17- 30).

[9] . Qin, M., Zhang, X., Li, Y., & Badarcea, R. M. (2023). Blockchain market and green finance: The enablers of carbon neutrality in China. Energy Economics, 118, 106501.

[10] . Sipthorpe, A., Brink, S., Van Leeuwen, T., & Staffell, I. (2022). Blockchain solutions for carbon markets are nearing maturity. One Earth, 5(7), 779-791.

Downloads

Published

2024-10-29

Issue

Vol. 2 No. 5 (2024): Volume 2, Issue 5

Section

Articles

License

Copyright (c) 2024 by the authors.

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.