To promote a climate-resilient, low-carbon, green, inclusive, integrated, and prosperous world, mobilizing funds to drive a green, inclusive, sustainable, and climate-compatible growth is essential. Blockchain and Web 3.0 have the potential to contribute to adaptation, mitigation, finance, and the enabling environment for climate action. This chapter is structured to educate people on mechanisms for raising capacity for effective climate change-related planning and management using blockchain, including focusing on women, youth, and local and marginalized communities. It aims to build the capacity of people involved in climate policy and climate action in blockchain technology's potential to strengthen action on climate change.
TopIntroduction
SDG Goal 13 (United Nations, 2021) calls for urgent action to combat climate change and its impacts. It summarizes the Paris Agreement (United Nations, 2021) to limit global temperature rise to below 2 degrees Celsius and the Goal 13 objectives:
13.1 Strengthen resilience and adaptive capacity to all countries' climate-related hazards and natural disasters.
13.2 Integrate climate change measures into national policies, strategies, and planning Indicators.
13.3 Improve education, awareness-raising, and human and institutional capacity on climate change mitigation, adaptation, impact reduction, and early warning.
The COP26 (National Grid, 2022) stimulated the world to commit to curbing contributions to carbon emissions. Achieving a net-zero world (Bouckaert, 2021) in less than 30 years is causing many to turn to the Blockchain, buy carbon offsets, and spark renewed interest in carbon capture. Voluntary Carbon Markets (Ecosystem Marketplace, 2021) hit a record $1 Billion in 2021. The United Nations Environment Programme (UNEP) identified transparency, clean energy, carbon markets, and climate finance areas where Blockchain technology can accelerate climate action (Alstair et al., 2021). At the 2017 Paris Summit, the UN Climate Change Secretariat joined a multi-stakeholder group of organizations to establish an open global initiative, the Climate Chain Coalition (UN Climate Change, 2018), signaling its early support for Blockchain for the climate. Blockchain offers several tools to support climate action, as outlined below.
Several authors have been exploring how Blockchain technology will help verify and trace multistep transactions. Future Thinkers (n.d) have identified ways Blockchain technology can combat climate change:
Supply Chain Management
Blockchain technology can track the supply chain of products. It will help consumers and sellers prevent waste, inefficiency, and fraud and establish transparency. Consumers can purchase products from sellers nearby, resulting in lower carbon emissions, which will cut transportation costs. A Blockchain-powered dApp, known as Foodtrax, created by Blockchain Development Company, enables food tracking from origin to store shelves.
Recycling
In several places in Northern Europe, people receive rewards with cryptographic tokens in exchange for depositing recyclable products such as those made of plastics. Facilitating this incentive distribution will enable transparent tracking of data like volume, cost, and profit to conduct impact evaluations. Social Plastic aims to eliminate poverty through such initiatives.
Environmental Treaties
Blockchain technology can help establish accountability among countries that promise a sustainable future.
Transparent Funds Flow
Blockchain technology can help pass the administrative procedures to ensure faster, transparent, and optimized funds transfers meant for conserving the environment. Developing countries mostly do the least harm yet suffer the most. Appropriate funding can help alleviate climate action.