Blockchain Technology: The Basis to Create a Carbon Currency to Count, Control and Reduce Carbon Emissions

Lisa Walker, Chief executive, Ecosphere+ has just shared an article on Blockchain Technology as a mean for climate change. The article “How blockchain will help save the environment”, published in Sustainable Development Impact Summit, has a fascinating thesis.

She starts with the fact that every financial transaction, in one way or another, has its impact on gas emissions. From purchasing a computer to making a cup of coffee at home. The computer created emissions in the manufacturing process and will use electricity, probably from fossil fuels. Cook a cup of coffee takes power, uses coffee that may have been roasted, and the trash you generate will probably be burned.

Willingness to pay premium for green products
Willingness to pay premium for green products

The standard, accepted solution of carbon credits has not worked at the country and enterprise level. But what about going to the individual level?

It is clear that some people are ready to pay more for carbon emissions-free products. So if we could track all carbon emissions related financial transactions, it will be much easier to account for carbon emissions at the individual level. L. Walker summarizes some of the findings in her sentence: “Consumers, led by socially conscious millennials with increasing buying power, want to purchase greener products and invest in sustainable projects. In fact, 72% of people between the ages of 15 and 20 are willing to pay extra for environmentally and socially responsible products and services.”

However, the world has not been able to move in that direction yet.

Thus Ms. Lisa Walker suggests to create a “carbon currency” based on blockchain technology, that will be tracking (and generating virtual value) through the financial transactions, all around the world.

“Imagine a world in which carbon emissions and credits can be tracked transparently and reliably. Retailers will be able to sell a product and take into account the carbon impact it creates at the same time. Governments will be able to measure, track and trade emissions transparently. And crucially, for the first time consumers will be able to understand the environmental impact of the products they are buying — both positive and negative — at the point of sale, and will be able to mitigate this in an instant, with millions of micro-transactions scaling up to make a huge collective impact.

 

There have been pretty humble initiatives in the past, like the one reflected in the articles referenced below. However, they didn’t fly.

Nonetheless, this is an interesting idea to help business and consumers to reduce their carbon footprint.

You can read more about this issue at

1 COMMENT

  1. […] Though it has been well known as the concept behind digital currencies, it may be applied to multiple objects or elements that are transacted. As a matter of fact, nearly all the top banks and many multinationals are experimenting with it. In 2017, Daimler, the owner of Mercedes Benz, issued corporate bonds based on this technology, and Lisa Walker recently published a paper on using Blockchain as a way to fight carbon emissions (refer to Blockchain Technology as a Resource for Climate Change Control) […]

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