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Abu Dhabi’s Technology Innovation Institute has launched a blockchain aimed at tracking carbon emissions and facilitating trade in the face of growing climate concerns.
In a December 5 post on X (Twitter), the institute announced that its Cryptography Research Center launched the blockchain because it represents the country’s commitment and drive to lead the world’s climate story.
Our Cryptography Research Center (CRC) today launched its own blockchain-powered carbon trading platform to facilitate international trading of carbon tokens. pic.twitter.com/0ablTqxfbY
— Technology Innovation Institute (@TIIuae) December 5, 2023
“Our Cryptography Research Center (CRC) today launched its own blockchain-powered carbon trading platform to facilitate international trading of carbon tokens.”
The new revelation comes at the United Nations Climate Change Conference (COP 28) with pledges to reduce emissions and move multiple sectors towards greener energy.
Using the concept of carbon trading and tracking will give companies the right idea of their impact on the environment and its deployment on the blockchain means it is public, which will encourage wider participation, which will push bigger players to keep all the promises to come.
Carbon tracking to reduce emissions
According to the statement, the projects will enable international trade in carbon tokens, monitor greenhouse gas projects and incentivize platforms to participate in reducing emissions as a whole.
Organizations record their emissions on the network in a way that is accessible to all users to create tokens that measure the CO2 removed from the company’s operations, either through capture or trading.
Developed as a lightweight blockchain, its operation is described as having minimal impact on the environment as it supports climate action as part of the government’s wider objectives.
The network will also have auditors to make the entire process safe, transparent, secure and accurate.
Over the years, the United Nations and several international organizations have tipped blockchain technology to solve real-world problems like climate change by tracking emissions and global carbon trading.
As a result of the openness of the technology, the industry will have access to accurate data about its activities without having to rely on third-party surveillance, which can be cumbersome while costing more.
Another positive of using distributed ledger technology (DLT) to address climate change is community participation in solving modern problems with modern solutions.
Blockchain projects are going green
In line with global goals and criticism of the sector’s energy consumption, certain blockchain companies have made the switch to greener energy or changed their practices.
The most notable was recorded in 2021 when the Ethereum blockchain switched to a Proof-of-Stake model, reducing its carbon footprint by 99% as miners were replaced by validators.
The network also launched the Ethereum Climate Platform (ECP), aimed at pushing industry players and traditional tech companies to reduce emissions, a move that has seen significant participation from Microsoft and other companies. On December 6, OKX Ventures, a branch of the OKX crypto exchange, joined the ECO to work with industry leaders to reduce climate change.
🤝 OKX Ventures has joined the Ethereum Climate Platform to collaborate on sustainable climate goals.#CryptoNews #Ethereum #OKXhttps://t.co/zFvP0QaVYi
— Cryptonews.com (@cryptonews) December 6, 2023
In addition, cryptocurrency companies have committed funds to the creation of solar-powered digital asset projects that incentivize developers to go green.
