Blockchain-Based Carbon Credit Ecosystem

Abstract

Climate change and global warming demand immediate action, and a global carbon trading system can help by reducing greenhouse gas emissions. Carbon credits allow companies to emit a defined amount of carbon dioxide, with each credit typically equaling one ton. Although these credits incentivize emissions reduction, current systems lack transparency, face high transaction costs, and benefit intermediaries. Our project proposes a blockchain-based Carbon Credit Ecosystem that uses blockchain and smart contracts to create a more transparent, accessible, and efficient carbon market. This system will tokenize carbon credits, establish protocols for credit creation and retirement, and transparently manage trading. Engaging stakeholders like the energy sector, project verifiers, NGOs, citizens, and governments, our model provides broad benefits and is adaptable to other credit and trading systems. Keywords: Blockchain, Carbon Credit, Smart Contracts, Carbon Trading, Transparency