Carbon Trading with Blockchain

Andreas Richardson; Jiahua Xu

Paper 2020/1476

Carbon Trading with Blockchain

Andreas Richardson and Jiahua Xu

Abstract

Blockchain has the potential to accelerate the worldwide deployment of an emissions trading system (ETS) and improve the efficiency of existing systems. In this paper, we present a model for a permissioned blockchain implementation based on the successful European Union (EU) ETS and discuss its potential advantages over existing technology. The proposed ETS model is both backward compatible and future-proof, characterised by interconnectedness, transparency, tamper-resistance and continuous liquidity. Further, we identify key challenges to implementation of blockchain in ETS, as well as areas of future work required to enable a fully decentralised blockchain-based ETS.

Metadata

Available format(s): PDF
Category: Applications
Publication info: Published elsewhere. Mathematical Research for Blockchain Economy
DOI: 10.1007/978-3-030-53356-4_7
Keywords: Blockchain Carbon trading ETS Sustainability ESG
Contact author(s): jiahua xu @ ucl ac uk
History: 2020-11-24: received
Short URL: https://ia.cr/2020/1476
License: CC BY

BibTeX

@misc{cryptoeprint:2020/1476,
      author = {Andreas Richardson and Jiahua Xu},
      title = {Carbon Trading with Blockchain},
      howpublished = {Cryptology {ePrint} Archive, Paper 2020/1476},
      year = {2020},
      doi = {10.1007/978-3-030-53356-4_7},
      url = {https://eprint.iacr.org/2020/1476}
}