Fifteenth International Conference on Environmental, Cultural, Economic & Social Sustainability

Abstract

Carbon Emissions Trading utilizes emissions allowances representing the right to pollute a certain quantity of carbon emissions. Participants may trade emissions allowances amongst each other and must submit allowances for compliance obligations. In order to facilitate an emissions trading scheme, trading and compliance infrastructure must be designed, deployed and maintained. The design and infrastructure must be made carefully to ensure smooth trading as well as for data protection and security. Blockchain is an emerging technology that can be used for online transactions, providing both data protection and transaction security. Blockchain technology was originally develop for crytocurrency trading using a decentralized model. Blockchain utilizes series of data blocks that contain value independent of central data storage, as well as using cryptographic methods to provide data and transaction security. Blockchain is increasingly seeing use in a variety of financial and other business processes. This study analyzes the possibility of using blockchain technology for carbon emissions trading. We look at three possible scenarios: using blockchain technology for government-sponsored emissions trading schemes; using blockchain in non-governmental emissions trading; and using blockchain for offsets.