Bitcoin and Ethereum are typically the blockchains that decision makers outside the industry consider when discussing distributed ledger technology, including as it relates to climate change.
The two largest and most experienced blockchains have a reputation for having a negative impact on the environment, which was famously brought to mainstream attention back in May when Elon Musk retracted his earlier announcement that Tesla would accept bitcoin payments due to the blockchain's high environmental cost.
However, dismissing blockchain as environmentally harmful based on its early versions is a mistake, especially since greener blockchains, such as Cardano, are already on the market. Aside from being more environmentally friendly, such blockchains have the potential to be effective tools in combating climate change.
Long-term changes in temperature and weather patterns are referred to as climate change. These changes could be natural, such as variations in the solar cycle. However, since the 1800s, human activities have been the primary cause of climate change, owing primarily to the use of fossil fuels such as coal, oil, and gas.
The combustion of fossil fuels produces greenhouse gas emissions, which act like a blanket wrapped around the Earth, trapping heat from the sun and raising temperatures.
Carbon dioxide and methane are two examples of greenhouse gas emissions that are causing climate change. These are caused by using gasoline to drive a car or coal to heat a building, for example. Clearing land and forests can also result in the release of carbon dioxide. Garbage landfills are a major source of methane emissions.
A change in the usual weather found in a location is referred to as climate change. This could be due to a change in the amount of rain that a location typically receives in a year. It could also be a change in a location's normal temperature for a month or season.
Climate change refers to changes in the Earth's climate. This could be due to a change in the average temperature of the Earth. It could also be a shift in where rain and snow normally fall on Earth. The weather can change in a matter of hours. Climate change can take hundreds or even millions of years.
Coal, oil, and gas are by far the most significant contributors to global climate change, accounting for more than 75% of global greenhouse gas emissions and nearly 90% of total carbon dioxide emissions.
The sun's heat is trapped as greenhouse gas emissions blanket the Earth. As a result, global warming and climate change occur. The world is currently warming faster than at any other time in recorded history.
Warmer temperatures are changing weather patterns and disrupting nature's normal balance. This poses numerous dangers to humans and all other forms of life on Earth. Some of the other major contributors of climate change are :-
The use of fossil fuels to generate electricity and heat contributes significantly to global emissions. The majority of electricity is still generated by burning coal, oil, or gas, which emits carbon dioxide and nitrous oxide, both of which are powerful greenhouse gasses that blanket the Earth and trap the sun's heat.
Wind, solar, and other renewable energy sources generate slightly more than a quarter of global electricity and, unlike fossil fuels, emit little to no greenhouse gasses or pollutants into the atmosphere.
Manufacturing and industry generate emissions, primarily from the combustion of fossil fuels to generate energy for the production of cement, iron, steel, electronics, plastics, clothing, and other goods. Mining and other industrial processes, as well as the construction industry, emit gasses.
Machines used in the manufacturing process are frequently powered by coal, oil, or gas, and some materials, such as plastics, are made with chemicals derived from fossil fuels. The manufacturing industry is a major contributor to global greenhouse gas emissions.
Cutting down forests to make farms or pastures, or for other reasons, causes emissions because trees release the carbon they have been storing when they are cut down. Approximately 12 million hectares of forest are destroyed each year.
Because forests absorb CO2, destroying them reduces nature's ability to keep emissions out of the atmosphere. Deforestation, along with agriculture and other land use changes, accounts for approximately one-quarter of global greenhouse gas emissions.
The majority of automobiles, trucks, ships, and planes run on fossil fuels. As a result, transportation is a major source of greenhouse gasses, particularly carbon dioxide emissions. The combustion of petroleum-based products, such as gasoline, in internal combustion engines accounts for the majority of the contribution.
However, emissions from ships and planes continue to rise. Transportation accounts for nearly a quarter of global energy-related CO2 emissions. And trends indicate that energy use for transportation will skyrocket in the coming years.
Food production emits carbon dioxide, methane, and other greenhouse gasses in a variety of ways, including deforestation and clearing of land for agriculture and grazing, digestion by cows and sheep, the production and use of fertilizers and manure for growing crops, and the use of energy to power farm equipment or fishing boats, which is typically done with fossil fuels.
All of this adds up to food production being a major contributor to climate change. Food packaging and distribution also contribute to greenhouse gas emissions.
Your home and power consumption, how you move around, what you eat, and how much waste you generate all contribute to greenhouse gas emissions. Consumption of goods such as clothing, electronics, and plastics also increases.
Private households are responsible for a significant portion of global greenhouse gas emissions. Our way of life has a significant impact on our planet. The wealthiest bear the greatest burden: the richest 1% of the global population account for more greenhouse gas emissions than the poorest 50%.
Also Read | Technology in Climate Change
A blockchain is a distributed database that its users constantly update and verify. Each new block of data is "chained" and becomes part of a growing list of records, which network members monitor. This technology enables asset transfers and transaction recording via a secure database.
Blockchain technology could be applied to climate action in the following ways:
Role of Blockchain in Climate Change
Blockchain technology has the potential to improve the system of carbon asset transactions. IBM and Energy Blockchain Lab, for example, are currently collaborating to create a Blockchain platform for trading carbon assets in China. Carbon assets recorded on a public Blockchain would also ensure transparency and that transactions are valid and settled automatically.
The technology may also enable the creation of platforms for peer-to-peer renewable energy trading. Consumers would be able to buy, sell, or trade renewable energy with one another by using tokens or tradable digital assets representing a specific amount of energy production.
Fake news on both sides of the climate change debate is common. Better and more reliable information is required, for example, to ensure that two different stakeholders do not claim carbon-offset credits for the same project. To prove ownership, smart contracts on the blockchain can be used.
Another task is to confirm that carbon-offsetting activities actually occurred. In both of these scenarios, blockchain and IoT devices could provide more trustworthy information in real time.
Blockchains could mitigate the risk of going backward by requiring states to make climate change commitments in exchange for a deposit. If a state fails to meet its carbon-offset commitments, its deposit may be taken and redistributed to those who have.
Though governments all over the world have announced incentives for adopting sustainable practices, the reality on the ground is very different, and the actual incentives are not encouraging. Blockchain technology has the potential to change all of this.
It can aid in the development of a structured incentive programme that governments can use to incentivize businesses that contribute to climate initiatives such as waste reduction, recycling programmes, and so on.
The ability of blockchain to track metrics such as energy consumption and then tokenize it can help businesses earn rewards for their climate actions. This will encourage businesses to adopt more environmentally friendly practices and contribute to global climate goals.
Green financing is becoming increasingly popular. This type of funding encourages businesses and individuals to adopt more environmentally friendly business practices. While this is a commendable approach, it is difficult to verify the authenticity of the sustainability metrics and the funds' use to support sustainability.
The ability of blockchain to immutably store this data and tokenize assets can help solve this problem. Furthermore, there are numerous other ways blockchain can assist us in combating climate change.
Blockchain smart contracts can be used to encourage countries around the world to make climate commitments with a deposit. This will ensure greater enforcement and reduce the possibility of forged commitments.
Also Read | Global Warming - An Overview
Blockchain is a new technology that has grown in popularity in recent years, with businesses across a wide range of industries adopting it. Blockchain is essentially a digital decentralized database that allows for the secure flow of data.
Given its inherent security feature, blockchain technology is frequently associated with the financial sector; however, the technology has several use cases for other sectors that have yet to be fully realized. One such area is environmental derivatives, where blockchain and its capabilities have the potential to revolutionize the industry.
While implementing sustainability programmes is critical to ensuring a more equitable future, managing these efforts has proven difficult. Globally, more data is being generated, and it is becoming increasingly difficult to track and trace that data.
This is primarily where blockchain will play a significant role in facilitating climate action. As technology advances, new use cases will emerge that will expand its application and benefits.
For its distributed nature, Blockchain has the potential to improve governance and sustainability in support of collective action to combat climate change.
Blockchain, as opposed to centralized or decentralized networks, prevents monopolistic control of the system. Additionally, the technology records transactions openly and permanently, promoting transparency and traceability.
Research into ways to integrate Blockchain into various sectors related to sustainable development is currently expanding, and innovation at the intersection of Blockchain and climate change is expected to grow in the coming years.
Blockchain was also a key topic at the Innovate4Climate 2017 conference in Barcelona this May, which was organized by the World Bank Group and others as the most important gathering of the private sector on climate change.
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