The potential of blockchain technology in expanding voluntary carbon markets
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Journal Title
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Volume Title
School of Arts, Design and Architecture |
Master's thesis
Location:
Author
Date
2020
Department
Major/Subject
Mcode
Degree programme
Master's Programme in Creative Sustainability
Language
en
Pages
71
Series
Abstract
Climate change poses the most urgent threat to all the species on earth. Carbon emissions are the major contributor to global warming and climate change. Therefore, global carbon reduction is crucial to limit the temperature rise to under 2°C above pre-industrial levels, thus preventing catastrophic climate disasters. In the 1990s, carbon markets were created to reduce emissions on a global scale. Compliance markets regulated by international treaties comprise most of global carbon trades. However, voluntary carbon markets have continued to grow rapidly in recent years. Scientists have been seeking solutions from technological innovations to tackle climate change. One such innovation is blockchain technology, which has been recognized by the United Nations as one of the most promising advances for the field of sustainability. Blockchain technology has been utilized to address common issues in carbon markets, such as hacking, frauds, and double-counting. This research examines these issues and explores the potential of blockchain technology in developing more accessible voluntary carbon markets for small sellers and buyers. Due to the novelty of the field, the study employs a qualitative research approach. The data collection included in-depth interviews with three experts of blockchain technology and two experts of traditional carbon trading, a webinar with three existing practitioners of blockchain-based carbon trading system, and a focus group with four participants. The main findings from the data analysis demonstrated strong evidence that blockchain technology can facilitate a more inclusive global carbon market for small buyers and sellers, reduce the costs of the verification and certification process, enhance trust between stakeholders, improve efficiency of carbon trading, and prevent risks of double-counting, hacking and frauds.Description
Supervisor
Juntunen, JouniThesis advisor
Juntunen, JouniKeywords
voluntary carbon markets, climate change, blockchain technology, climate innovation, carbon trading, carbon offset
