The internet is entering a second era that’s based on blockchain. It is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network. It provides many benefits over centralised forms of record-keeping, including transparency of data and no single point of failure.
A blockchain is a powerful tool that can significantly improve the transparency, accountability, and traceability of greenhouse gas emissions by Sector and helps companies provide more accurate, reliable, standardised, and readily available data on carbon footprints.
Carbon Footprinting is the total amount of carbon dioxide emitted to the environment by companies, individuals, events, or products. It is measured in terms of how many tons of carbon dioxide and other harmful gases, such as methane, are emitted annually. It negatively affects the environment, contributing to urban air pollution that leads to toxic acid rain. It is the main cause of human-induced climate change.
However, blockchain technology plays a significant role in balancing climate change and fighting against the increasing carbon footprint. This technology can be utilised through smart contracts to calculate better, track and report on reducing the carbon footprint across the entire value chain. It can provide instant authentication, verification of real-time data, and clear data records. It can transform individual efforts of companies into a networked effort by developing blockchain-enabled platforms that bring together all stakeholders, including companies, government, and citizens. Innovations in blockchain technologies are powerful enablers for collective action to fight climate change.
Pakistan, being rated the 8th most-affected country due to the adverse impacts of climate change, needs to introduce blockchain technology for its climate action. Some steps Pakistan should take to harness blockchain technology to reduce carbon footprints. There should be development and adoption of technical assistance and investment programs that support blockchain-based digital innovations that contribute to climate change mitigation and adaptation. The government should introduce the clean technology innovation ecosystem in the country and improve access to finance for clean technology startups and small and medium-sized enterprises.
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