The Technology Innovation Institute in Abu Dhabi has launched a blockchain geared towards tracking carbon emissions and facilitating trading amid growing climate concerns.
In a Dec 5 post on X (Twitter), the institute disclosed that its Cryptography Research Center has launched the blockchain as it represents the country’s commitment and drive to leading the world’s climate narrative.
Our Cryptography Research Center (CRC) today launched its very own blockchain-powered carbon trading platform to facilitate international trade in carbon tokens. pic.twitter.com/0ablTqxfbY
— Technology Innovation Institute (@TIIuae) December 5, 2023
“Our Cryptography Research Center (CRC) today launched its very own blockchain-powered carbon trading platform to facilitate international trade in carbon tokens.”
The new revelation comes during the United Nations Climate Change Conference (COP 28) with pledged pledges to lower emissions and steer multiple sectors towards greener energy.
Utilizing the concept of carbon trading and tracking will give firms the right idea of their environmental impact and its deployment on the blockchain means it is public, encouraging wider participation which will drive bigger players to fulfill all promises.
Carbon tracking to reduce emissions
According to the statement, the projects will allow for the trade of carbon tokens internationally, monitor greenhouse projects, and incentivize platforms to participate to lower emissions as a whole.
Organizations record their emissions on the network in a manner open for all spurring users to create tokens that measure carbon removed from the company’s operation either through capture or trading.
Developed as a lightweight blockchain, its operation has been described to minimally affect the environment as it aids climate action as part of the wider goals of the government.
The network will also have auditors to make the entire process safe, transparent, secure, and accurate.
Over the years, the United Nations and several international organizations have tipped blockchain technology to solve real-world issues like climate change through tracking emissions and global carbon trading.
As a result of the openness of the technology, the industry will have the right data on their activities without relying on third-party expert monitoring which may be cumbersome while costing more.
Another positive of utilizing distributed ledger technology (DLT) to tackle climate change is community participation in solving modern problems with modern solutions.
Blockchain projects go green
In line with global objectives and criticism of the sector’s energy usage, certain blockchain firms have made a switch to greener energy or changed their mode of operations.
Most notable was recorded in 2021 when the Ethereum blockchain transitioned to a Proof-of-Stake model reducing its carbon footprint by 99% as it got rid of miners replacing them with validators.
The network also launched the Ethereum Climate Platform (ECP) aimed at bringing industry players and traditional tech firms to reduce emissions, a move that has gained significant participation from Microsoft and other firms. On Dec 6, OKX Ventures, an arm of OKX crypto exchange joined the ECO to partner with industry leads in curbing climate change.
🤝 OKX Ventures has joined the Ethereum Climate Platform to partner towards sustainable climate goals.#CryptoNews #Ethereum #OKXhttps://t.co/zFvP0QaVYi
— Cryptonews.com (@cryptonews) December 6, 2023
Furthermore, cryptocurrency companies have released funds for the creation of solar-powered digital asset projects incentivizing developers to go green.