Description

Blockchain-Based Carbon Credit Tracking – Using decentralized technology to transparently track and trade carbon credits.

The urgency of mitigating climate change has driven global initiatives toward effective carbon credit tracking and trading systems. Traditional carbon markets, plagued by opacity, fraud, and inefficiencies, require an innovative transformation. Blockchain technology, with its inherent decentralization, transparency, and immutability, presents a revolutionary solution to these challenges. This thesis explores the integration of blockchain for carbon credit tracking, ensuring trust, security, and efficiency in the global carbon marketplace. By employing smart contracts, decentralized ledgers, and cryptographic security, blockchain facilitates real-time verification, reduces double counting, and enhances regulatory compliance. The study employs a hybrid research methodology combining theoretical analysis with practical implementation, developing a prototype decentralized application (dApp) for carbon credit transactions. Findings indicate that blockchain significantly enhances market transparency, reduces transaction costs, and mitigates fraud while fostering stakeholder confidence. The thesis concludes with policy recommendations and future research directions to scale blockchain adoption in carbon credit trading, ensuring environmental integrity and economic sustainability.

Chapter 1: Introduction

• Background on Climate Change and Carbon Markets
• Challenges in Traditional Carbon Credit Trading
• Potential of Blockchain Technology
• Research Objectives and Questions
• Thesis Structure

Chapter 2: Literature Review

• Overview of Carbon Credit Mechanisms (Kyoto Protocol, Paris Agreement, Voluntary Carbon Markets)
• Blockchain Fundamentals (Distributed Ledgers, Consensus Mechanisms, Smart Contracts)
• Previous Applications of Blockchain in Environmental Sustainability
• Gaps in Current Research

Chapter 3: Theoretical Framework

• The Role of Decentralization in Market Efficiency
• Trustless Systems and Fraud Prevention in Carbon Credit Trading
• Game Theory and Economic Implications of Blockchain Adoption
• Regulatory and Legal Considerations

Chapter 4: Methodology

• Research Design and Approach (Qualitative and Quantitative Methods)
• Development of a Blockchain-Based Carbon Credit dApp
• Case Studies of Existing Blockchain Carbon Market Applications
• Data Collection and Analysis Techniques

Chapter 5: Implementation and Analysis

• Architecture and Development of the Blockchain dApp
• Smart Contract Design for Carbon Credit Transactions
• Simulation of Carbon Credit Issuance, Verification, and Trading
• Evaluation Metrics: Transparency, Security, Efficiency, and Scalability

Chapter 6: Discussion and Findings

• Impact of Blockchain on Carbon Market Transparency
• Reduction of Fraud and Double Counting
• Economic and Environmental Implications
• Challenges and Limitations of Blockchain Integration

Chapter 7: Policy Recommendations and Future Research

• Regulatory Frameworks for Blockchain-Based Carbon Credit Trading
• Enhancing Interoperability with Existing Carbon Markets
• Advancements in Smart Contract Automation and AI Integration
• Future Research Avenues for Sustainable Blockchain Solutions

Conclusion: This thesis demonstrates that blockchain technology provides an unprecedented level of transparency, security, and efficiency in carbon credit trading. The implementation of decentralized ledgers and smart contracts can significantly improve accountability, reduce transaction costs, and facilitate global cooperation in combating climate change. The research underscores the necessity for policy frameworks that encourage blockchain adoption while addressing regulatory and scalability challenges. Future advancements in blockchain, artificial intelligence, and IoT will further refine carbon credit trading mechanisms, ensuring a sustainable and verifiable pathway toward carbon neutrality.