Blockchain For Carbon Capture Trading Markets

Climate change has been a focal point for many countries and human rights activists around the world for almost a decade since the Paris Climate Agreement was signed. But, as the environment keeps getting degraded by man’s activities, the question remains about what can be done to change the narrative. 

A new technology that hasn’t been explored will need to be deployed to radically change the tide. This piece will discuss the problem, analyze that solution through Carbon trading with the application of blockchain and the greener future of the planet. 

Carbon- A Growing Global Environmental Problem

The development of mankind through technological breakthroughs has led to many problems. Things we thought were impossible have become possible but at a high price. As we drive in cars, take luxury vacations on aeroplanes, power up more devices, or even just buy snacks, we’re harming the environment to different degrees. 

Over time, the activities of mankind have caused damaging changes in our climate. As economies blossom, power is generated from coal, oil, and other non-renewable resources, causing grave harm to the environment. The United States, Europe, and China are among the countries with the most  CO2 emissions due to higher rates of industrialization. In 2020, a total of 31.5 Gt of CO2 emissions was recorded around the world. 

This year, carbon emissions are expected to grow by 40% as industries become more active again, following the re-opening of economies after the pandemic. These carbon emissions are responsible for increasing temperatures around the world, leading to wildfires, as well as loss of animals and plants. 

As mentioned above, the degeneration of the planet as a result of growing carbon emissions has been a growing concern for many years. Climate change has become an issue that everyone wants to solve, but because of factors including the requirement of non-renewable fossil fuels by a lot of industries as well as climate change deniers, the efforts of climate change have been slow. 

As governments and the United Nations look for a permanent solution, countries have taken the bull by the horn by setting up climate targets within their cities. These climate targets involve capping the use of fossil fuels by large corporations. Companies are expected to only emit a certain level of carbon in order to drive down emissions in the long run and encourage the use of renewable energy. One of the solutions proposed is the scaling of carbon trading through the use of technology such as blockchain. 

What is Carbon Trading?

Carbon trading is the sale of the carbon credit of a company to another company. Generally, a company with fewer carbon emissions can trade its excess carbon credits to another company that has surpassed its own. 

Carbon trading has become popular and has seen adoption from companies in the EU, China, and Brazil, among others. The common method of carbon trading is the cap and trade method. 

Carbon Trading with FiO

FiO provides solutions to companies by taking their operations to the blockchain. FiO solution deploys blockchain technology to make carbon trading more straightforward and more efficient for firms across the world. 

Apart from being the underlying technology for cryptocurrencies and digital assets, blockchain technology helps to increase transparency in transactions, keeps people in charge of their money, helps monitor educational progress, and is now involved in climate change through carbon trading. 

Earlier this year, United Nations-backed blockchain technology will be used to tackle climate through tracking funds donated towards environmental protection. 

FiO helps firms monitor their actual carbon emissions through blockchain technology. This is done through the cap and trade system – a firm has its given carbon emission quota, and it is expected to properly monitor it to avoid sanctions. 

Monitoring carbon emissions can be done with blockchain technology, just like other FiO deployments. For example, FiO has been deployed by Dachan Foods to properly monitor bad eggs and chicken death rates. 

Blockchain technology provides an easier way to keep track of all data than utilizing traditional record-keeping methods. FiO blockchain enables companies to estimate its carbon usage, give it better edge trading credits, and gradually reduce its emissions. 

Blockchain technology aids in the transparent recording of transactions. It gives people a better claim as all transactions are recorded in an immutable system that can’t be denied by either party.

 

FiO can assist corporations trading on the blockchain to avoid disparity in issues such as total credit sold and other related scams. The sale of carbon credits is large as it goes beyond continents and regions. 

A complicated trade requires a better record system that is built on better transparency. FiO blockchain has already been deployed to aid copyright owners through sales on the blockchain. The FiO model seeks to scale up firms by incorporating blockchain technology in their activities leading to increased productivity.