- Microsoft recently announced it would invest US$1 billion to become a carbon-negative enterprise.
Pandemic clears skies, but global warming continues. Even after four years since the signing of the Paris Agreement, it is predicted that global warming will exceed the thresholds, in a disastrous manner. We are still in short of the ideas and technologies to control the climate crisis. Even if we know what to do, there exists an unclear picture of how to do.
New technologies are emerging rapidly in the current economy, but point-shooting is to be done to make use of them. Blockchain is one of the technologies which has the potential to save earth from climate changes. It is a data structure that stores information, which is distributed to all participants in a network. The data thus stored is tamper-resistant and useful for generating single source and transparency in any kind of information.
The blockchain serves as building blocks for decentralized autonomous organizations, which is a potential alternative governance mechanism at the National level that having higher benefits.
The process takes place on a single decentralized climate organization, in which states, individuals and companies participate. The interactions are facilitated by pieces of computer code running on the top of Blockchain, called smart contracts. The climate commitments by states are to be linked with the climate initiatives and individual climate action through a common token, let it be the green coin. There are mainly three ways by which the decentralized system help the world act against climate change.
- Ensuring transparency
Actions against climatic changes need to be strongly coordinated, with better information. For that, the data needs to be more transparent. So to avoid any conflicts among stakeholders, publicly shared digital ledger will be helpful than a central agency. The challenging activities include claiming carbon credits, verifying that carbon-offsetting activities have actually occurred, verifying emission reductions, etc. Blockchain helps in tracing new information while smart contracts offer an efficient way to reward critical tasks.
- Discharging commitments
In the current scenario, we are more anxious about Covid-19 which will relatively affects the Government commitments. Through smart contracts, Blockchain has diminished the risk of backsliding, since the states are bound by agreements with a monetary deposit. If any state fails to comply with their targets, the deposit could be redistributed among the states who subside the carbon emission by planting trees etc.
- Attracting the stakeholders
A decentralized climate organization would combine billions of resources and unite their efforts in eliminating climate changes. Earning green coins by planting trees will make them more indulged in combating climate changes.
Blockchain-based climate organization holds theoretical benefits, though its realization is a little difficult. Big states or companies might be unwilling to participate in a system that makes broken promises and that automates the punishment process. A virtual aid for climate control would also require public interest and acceptance, which might be the hardest challenge of all.
