BLOCKCHAIN-ENABLED CARBON CREDIT TRADING: REVOLUTIONIZING SUSTAINABILITY EFFORTS

Abstract

This article examines the transformative impact of blockchain technology on carbon credit trading, focusing on its potential to enhance sustainability efforts and market efficiency. By leveraging decentralized ledgers, organizations can now transparently track and report their carbon emissions while participating in carbon credit markets with unprecedented ease and trust. The article explores blockchain's role in creating digital tokens representing carbon credits, facilitating seamless trading processes, and ensuring credit legitimacy. It delves into current market dynamics, including trading mechanisms and market size, and investigates how blockchain-enabled carbon credit trading contributes to global climate change goals. Furthermore, the article analyzes the implementation of smart contracts for trade execution and settlement, providing insights into the challenges and opportunities presented by blockchain in revolutionizing sustainability practices across various sectors.