As the world celebrates the 50th anniversary of Earth Day, a number of industries appear to be looking toward blockchain to address one of today’s largest global threats: climate change. The Paris Agreement, which was signed into effect in 2016, addressed the long-term goal to keep a global temperature rise to less than two degrees Celsius before the end of the century.
According to a recent U.N. Environment Program report, annual emissions have to be reduced by 29–32 gigatonnes of equivalent carbon dioxide by 2030 in order for the Paris Agreement goals to be achieved.
Something to consider
Nadia Hewett, the World Economic Forum’s project lead for blockchain and distributed ledger technology, told Cointelegraph that blockchain works well in providing transparency of carbon emissions reporting:
“If you can get organizations to report their carbon emissions across a blockchain network, then a single platform is created to increase the transparency among partners. In turn, it becomes easier to compare different numbers.”
According to Hewett, accurately calculating carbon footprints is a complex and costly process, which lacks a single global methodology. She added that, “Most companies today are likely using different standizations metrics to calculate carbon footprints, so it’s difficult to compare these footprints.”
Hewett noted that a key benefit of blockchain is that it can serve as a single platform for carbon measurement, helping provide a standardized algorithm for reporting carbon emissions that can be agreed upon by different entities. “At the end of the day, this is all about transparency and accountability,” she said.
Interestingly enough, the International Chamber of Commerce launched its new Carbon Council initiative on April 22, which leverages blockchain to create higher liquidity for the carbon market. According to Time magazine, carbon markets are a key tool for states to get businesses to help mitigate climate change, as…