As the demand of the cryptocurrency is growing continuously, now energy usage is being questioned.
As per research reports, purported results regarding energy consumption habits from miners have been obtained. It leads to high carbon emission levels that may breach the national climate change mitigation obligations.
Due to the unavailability of appropriate data sources, it will be quite hard to represent the accurate figures, to make sure about the amount of power mining eats up.
Despite having more discussions on the energy consumption and emissions, many see blockchain as a way to open up traditionally centralized carbon markets to a broader variety of players. It directs the attention towards the low carbon worldwide economy.
With the continuous growth of carbon emission, it draws the attention towards the climate change and carbon output which may lead to craft new legislative agreements and compliance mechanisms to slash down the emissions. In consideration of such issues, a new initiative has been taken to enhance the sustainability and efficiency of the same.
Climate Change Coalition(CCC) of the United Nations is looking into distributed ledger technologies. So they can carry out pilot projects to test their use cases.
Apart from that, Blockchain for climate foundation(BFC) in Canada has already taken an initiative to use blockchain to build a tool that could help to achieve predefined objectives.
An idea of a unit carbon impact transfer value has been originated from the Internationally Transferred Mitigation Outcomes(IMTOs). The propaganda of using this outcome as per article is to link up each nation’s carbon account together.
BFC founder Joseph Pallant traced out the strategy to implement the IMTO with his team by using Ethereum via smart contracts. He further added that there would be a sufficient amount of information inside each token that would add clarity about the provenance and eligibility of each tonne of emissions reduction. Although, Each Unique Fungible Token will validate the authenticity of carbon credits. But buying of traditional carbon credit could be a lengthy process. Jim Procanik, director & founder of Veridium, said that blockchain is the “perfect background” towards a more liquid marketplace.