Carbon Trading with Blockchain
This addresses inefficiencies in carbon trading for policymakers and environmental stakeholders, but appears incremental as it builds on existing ETS frameworks.
The paper tackles the problem of improving emissions trading systems (ETS) by proposing a permissioned blockchain model based on the EU ETS, aiming for advantages like transparency and tamper-resistance, but does not provide concrete results or numbers.
Blockchain has the potential to accelerate the deployment of emissions trading systems (ETS) worldwide and improve upon the efficiency of existing systems. In this paper, we present a model for a permissioned blockchain implementation based on the successful European Union (EU) ETS and discuss its potential advantages over existing technology. We propose an ETS model that is both backwards compatible and future-proof, characterised by interconnectedness, transparency, tamper-resistance and high liquidity. Further, we identify key challenges to implementation of a blockchain ETS, as well as areas of future work required to enable a fully-decentralised blockchain ETS.