The UN is considering to use Blockchain Technology in order to fight climate change!
At the UN Climate Change Conference in Bonn (Germany) in May, experts have come to the conclusion that Blockchain might be used in the Paris climate agreement.
The Paris Climate Agreement is an effort to reduce emissions and fight global warming.
Why Blockchain?
Since Blockchain Technology offers total transparency and records everything with a time stamp, it would be a perfectly efficient system for this kind of task.
Because Blockchain is a distributed network, it could "improve governance and sustainability in support of collective action aimed at tackling climate change".
In contrast to regular centralized or decentralized networks, there is no monopoly possible with Blockchain. All transactions are recorded transparently and permanently.
Blockchain could monitor the carbon emissions, fund allocation and clean energy trading, and it could also ensure the accuracy of any data regarding the carbon emission reduction.
"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. 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."-Alexandre Gellert Paris,
Associate Programme officer at the UNFCC (UN Framework Convention on Climate Change)
Possible uses for Blockchain Technology:
- Improved carbon emission trading
Carbon Assets could be recorded on a public blockchain to make sure all transactions are valid and transparent.
IBM and Energy Blockchain Lab are already working on a Blockchain platform for trading carbon assets in China.
- Facilitated clean energy trading
Thanks to Blockchain technology, platforms with peer-to-peer renewable energy trade could be established where consumers can buy, sell or exchange renewable energy . Digital assets or tokens could be used to represent a certain amount of energy production.
- Enhanced climate finance flows
With Blockchain technology, it would be possible to create peer to peer financial transactions in support of climate action. These will be backed by crowdfunding and can ensure that different projects could receive financing transparently.
- Better tracking and reporting of greenhouse gas (GHG) emissions reduction
With the help of Blockchain Technology, GHG emissions could be tracked so that everything is transparent, and emission reductions could be reported. This is also why double counting won't be an issue anymore.
Blockchain could also become a tool to monitor how the Nationally Determined Contributions, or “NDCs” under the Paris Agreement are progressing, as well as in company targets.
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.
Conclusion
While there is no specific timeframe yet when the project featuring Blockchain will begin, the UN definitely recognizes its benefits and will be working towards implementing them.
Blockchain could help make several processes efficient and transparent, and has shown once again that it has many different uses apart from cryptocurrency and finance.
2 months ago, I already wrote a post about the UN using Blockchain Technology to help distribute funds to refugees.
The popularity of Blockchain increases everyday, and this project will definitely not be the last!
© Sirwinchester