UAE Unveils Blockchain Carbon Trading Platform at COP28

In support of the United Arab Emirates government’s ongoing efforts to reduce emissions to net zero, a research center affiliated with the government of Abu Dhabi has recently introduced a blockchain-powered platform for carbon monitoring and trading.

International trade of carbon tokens associated with investments in green projects, such as carbon capture and forestry, will be made possible via the new blockchain, which was introduced on December 5 at the most recent United Nations Climate Change Conference (COP28).

The Technology Innovation Institute (TII) announced on December 5 that the Cryptographic Research Center of the TII was responsible for developing the platform.

The emissions of any global public or private organization can be recorded on the blockchain, allowing for the monitoring of carbon emissions, according to the TII. TII is a government-sponsored organization affiliated with the Abu Dhabi Advanced Technology Research Council.

Promoting the “UAE Vision 2021,” which seeks to enhance the nation’s economy and establish a “sustainable and nurturing environment for high-quality living,” is regarded as a crucial element in this endeavor. A certain quantity of carbon dioxide removed from the environment can be quantified on tokens that users can generate these tokens can subsequently be traced along the supply chain, according to TII.

Among the most probable applications of the blockchain are peer-to-peer energy trading, waste disposal monitoring, recycling operations, and forest management initiatives. The platform’s security and transparency will also be upheld through the participation of auditors.

In order to facilitate transactions at minimal to no cost, the institute stated that it employed a blockchain implementation that is both lightweight and efficient, with no intention of wasting computational resources.

“The blockchain solution is a positive step toward the UAE becoming a global leader in technology,” said TII CEO Ray O. Johnson. Years ago, carbon credits commenced being generated and administered utilizing blockchain technology.

“We are proud to announce this digitized tracking and trading platform at COP28, representing the UAE’s drive to become a technology and innovation powerhouse and its commitment to leading the world’s climate action agenda.”

In the interim, blockchain networks are developing increasingly energy-efficient initiatives. In order to monitor the Solana network’s energy consumption, the Solana Foundation published an original real-time carbon emissions sensor.

Ethereum underwent a significant reduction in energy consumption of more than 99.9% by shifting from proof-of-work to proof-of-stake in September 2022. In contrast, Bitcoin miners are progressively adopting renewable energy sources as a means to mitigate emissions.

Additionally, the implementation of decarbonization solutions is the objective of blockchain-based initiatives such as Energy Web and Power Ledger. Dubai hosted COP28 from November 30 until December 12.