Blockchain technology can play a significant role in supporting the race to achieve net-zero emissions by providing transparency, traceability, and efficiency in various aspects of sustainability initiatives, particularly in the energy sector, says the World Economic Forum (WEF).
One critical aspect identified by the WEF is the development of measurements standards, which would serve as basis for comparison thus leading to the most efficient and sustainable choices.
Last September, the WEF launched the Crypto Sustainability Coalition, which is investigating how web3 and blockchain tools can be leveraged to achieve positive climate action. The new Coalition is a public-private initiative hosted by the WEF and comprises 30 partners.
It’s more important than ever that the crypto and larger innovation community agree to a shared set of measurement standards.
Cathy Mulligan, Brynly Llyr and Kirsteen Harrisson for the WEF platform on tech and innovation
The trio argues that measurement is critical for enabling technology to contribute to the world’s net-zero goals and is calling on the crypto community to agree on a shared-understanding to set standards to enable different protocols to compare their overall environmental impact.
“Without a solid understanding of the impact a particular technology has, it is unlikely that effective adjustments can be made to improve environmental performance. For any measurement to be helpful across an industry, it must be comparable across different parts of that sector and the methodologies must be clear and transparent,” they stated.
Some ways in which blockchain tech can actually contribute to support the race to net-zero emissions, include:
1. Carbon tracking and offsetting
Blockchain can enable accurate and transparent tracking of carbon emissions and the associated offsetting efforts. By using smart contracts and distributed ledger technology, carbon credits and offsets can be reliably recorded, verified, and traded. This process ensures the integrity of emission reduction projects and helps businesses and individuals to make informed decisions about their carbon footprint.
2. Trading renewable energy
This cutting-edge tech can also facilitate peer-to-peer energy trading, enabling direct transactions between renewable energy producers and consumers. Through smart contracts and decentralized platforms, excess renewable energy generated can be efficiently sold to other users, promoting a decentralized energy grid and supporting the adoption of renewable sources.
3. Supply chain transparency
Supply chain transparency can be enhanced using blockchain tech too by tracking and verifying the origin, authenticity, and environmental impact of products. The process works by integrating blockchain with Internet of Things (IoT) devices, which allows the traceability of every step of a product’s journey — from raw material sourcing to manufacturing, transportation, and end-user consumption. This transparency helps identify inefficiencies, reduce waste, and ultimately improving the uptake of sustainable practices.
