Developing Blockchain-Based Carbon Accounting and Decentralized Climate Change Management System

This chapter discusses how emerging technology can be used to build a blockchain-based system for corporate carbon accounting and global climate change management. There is growing consensus that GHG emissions control requires coordinated efforts and collaboration in all sectors and at all levels of an organization. But, due to potential conflicts of interest and lack of trust between stakeholders, it is difficult to achieve the target of capping the global warming below 2°C. Thus, we propose using a blockchain-based system to build a corporate carbon accounting system which can strengthen carbon management. The blockchain technology can also be adopted in global climate change management. Such a system is appropriate for a decentralized climate change mechanism endorsed by the Paris Agreement for climate change. The system fits within existing market-based emissions trading schemes (ETSs). Blockchain enables the integration of national ETSs and corporate carbon accounting into a synthetic and coherent governance framework.