How Blockchain Can Help Fight Climate Change
Blockchain technology has the potential to revolutionise the way we combat climate change.
By providing a decentralised platform for tracking and compensating for carbon emissions, blockchain could help us to make up for our impact on the environment and take steps to reduce our carbon footprint.
As the world continues to experience the effects of climate change, increasingly stricter restrictions are placed on the emission of all greenhouse gases. The growing number of regulations that penalise these emissions are prompting businesses and individuals to look for ways to compensate for their carbon footprints.
Blockchain technology can be immensely useful for this application.
How blockchain makes carbon compensation more effective
Blockchain can be used to precisely track the quantity of CO2 removed by a project. This can even be applied to individual trees. A tree’s carbon absorption rate and the total amount of CO2 it absorbed can easily be recorded on the blockchain. This process eliminates the time discrepancy between absorption and emissions usually associated with carbon offsets. This makes carbon compensation tokens superior to their traditional counterparts.
Blockchain can be used to create a decentralised marketplace for carbon compensation. This would allow for more transparency and efficiency in the market, and it would also make it easier for people or organisations who want to compensate for their carbon emissions.
The decentralised exchanges made possible by blockchain, create an open market for tokenized carbon compensation. This allows businesses and individuals to compensate for their emissions directly, without needing to turn to an intermediary. This avoids unnecessary costs and ensures that funds are properly allocated to carbon-compensating activities.
Apart from making the sale and purchase of carbon compensation more accessible, it also gives many the opportunity to participate in it. Since it is now possible for people to tokenize the carbon removed from plants on their projects, farmers and landowners can easily become part of a carbon compensation ecosystem. This not only gives the former access to an alternative revenue stream but also improves the livelihood of rural communities and supports agriculture.
The use of blockchain in climate change mitigation is still in its early stages. Despite this, it has great potential to help individuals and organisations make up for their impact on the environment. While it is currently possible to tokenize plants on a project level, such as a forest or an orchard, it might be possible to do so for individual plants. This could mean that in the future micro-scale carbon compensation projects can include flora in urban centres. Many densely packed cities around the world could benefit from cleaner air. Tokenized carbon compensation could incentivise people in cities to grow more plants. This could set in motion a positive change — an additional source of carbon compensation which can help negate the effect of our emissions.
In closing, blockchain has the potential to revolutionise the way we tackle climate change. It can make carbon compensation more prevalent and accessible by creating an economic incentive for people to actively participate in it. It addresses the long-standing issues with the carbon market by creating a promising alternative. One that helps make carbon compensation transparent, accountable and effective. By using blockchain to track and verify carbon compensation, companies and individuals can be sure that they are doing their part in helping the environment.
The best part about blockchain-based carbon compensation is that it’s already a reality. We at Coorest provide easy and transparent carbon compensation by using the power of blockchain technology.