MCCE said that with the new system, government organizations will be able to issue carbon credits to businesses that allow them to emit a certain amount of carbon over a certain period of time. Or they will be able to sell them to organizations seeking to offset their own emissions. With blockchain, all stakeholders will transparently track the sale of carbon credits, and all data will invariably be stored in a distributed registry.
UAE Minister of Climate Change and Environment Mariam Al Mheiri revealed that the country plans to achieve carbon neutrality by 2050, reducing emissions by 40% and increasing the figure by 9% compared to previous plans. Each of the UAE’s seven emirates has developed its own program to implement this initiative, and a blockchain-based system will help facilitate this task.
“It requires a scientific approach based on the latest technology and the highest level of transparency. We need a system for monitoring carbon credits that can work with real data,” commented Mheiri.
Venom Foundation board chairman Peter Knez said a blockchain-based solution will provide high transaction speeds and unlimited scalability to better realize government objectives. Industrial Innovation Group CEO Taryam Matar Taryam added that a national blockchain-based system for registering carbon credits will help reduce environmental impact through decarbonization. Global climate change is closely linked to increasing concentrations of carbon dioxide in the atmosphere, Tarjam said.
This isn’t the first time blockchain has been used to address carbon emissions. In May, British accounting firm Ernst&Young (EY) launched a beta version of an Etherium blockchain-based platform that allows businesses to track their carbon emissions.