An Abu Dhabi-based research center, affiliated with the government, has introduced a novel blockchain-powered platform for carbon tracking and trading. This initiative aligns with the United Arab Emirates’ efforts to reduce emissions and achieve net-zero targets.
Unveiled at the United Nations Climate Change Conference (COP28) on December 5, this blockchain platform facilitates the international trading of carbon tokens. These tokens are linked to investments in environmentally friendly projects, including forestation and carbon capture initiatives.
Developed by the Cryptographic Research Center of the Technology Innovation Institute (TII), as stated in their December 5 announcement, the blockchain is capable of registering carbon emissions from any public or private organization globally. The TII, under the umbrella of Abu Dhabi’s Advanced Technology Research Council, plays a pivotal role in advancing the UAE Vision 2021, which focuses on economic growth and a sustainable environment conducive to quality living.
The platform allows users to generate tokens representing a specific quantity of carbon dioxide removal, with the capability to track these tokens throughout their supply chain journey. It is expected to find applications in peer-to-peer energy trading, waste disposal and recycling tracking, as well as forestry management.
To maintain transparency and security, the platform will involve auditors in its operations. The TII emphasizes that their blockchain implementation is lightweight and efficient, designed to avoid computational waste, thereby enabling trading at minimal or no cost.
TII CEO Ray O. Johnson highlighted the significance of this blockchain solution at COP28, underscoring the UAE’s ambition to become a global leader in technology and innovation and its commitment to spearheading climate action.
Blockchain technology has increasingly been employed in the creation and management of carbon credits. Concurrently, there is a growing trend among blockchain networks to minimize their energy consumption. Notable examples include the Solana Foundation’s real-time carbon emissions tracker for the Solana network and Ethereum’s transition to a proof-of-stake model in September 2022, which drastically cut its energy use by over 99.9%. Additionally, Bitcoin miners are progressively turning to renewable energy sources to diminish emissions.
Other blockchain-based projects like Power Ledger and Energy Web are also actively engaged in developing decarbonization solutions.
COP28, which began on November 30 in Dubai, is set to conclude on December 12.
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