Abstract

Blockchain technology was originally created for the purpose of developing online crypto-currencies. Nevertheless, innovations in the technology and its use are seeing it being utilized in many other areas of trade, commerce, and logistics. The objective of this article is to assess the feasibility of using blockchain technology to facilitate carbon emissions trading. This article assesses the design and architecture of both emissions trading and blockchain to show that blockchain technology could theoretically fit the role of providing a decentralized carbon ledger—a registry and record of transactions in emissions trading that is maintained by a huge network of individuals. In particular, as international carbon trading and linking is set to become more decentralized after 2020 with the Paris Agreement, we look at whether blockchain could be used for international trading or linking of various national programs for emission reduction.