Cryptology ePrint Archive: Report 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.

Category / Keywords: applications / Blockchain, Carbon trading, ETS, Sustainability, ESG

Original Publication (in the same form): Mathematical Research for Blockchain Economy

Date: received 24 Nov 2020

Contact author: jiahua xu at ucl ac uk

Available format(s): PDF | BibTeX Citation

Version: 20201124:113452 (All versions of this report)

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