The United Arab Emirates (UAE) unveiled last week a blockchain-powered carbon trading platform. This innovative initiative aims to facilitate the tracking of greenhouse gas emissions and the international trading of carbon credits.
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Innovative blockchain to give substance to green ambitions
Abu Dhabi Institute for Technological Innovation presented on December 5th its exclusive carbon token trading platform. This flagship initiative is in line with the climate commitments made by the UAE at the COP 28.
Our Cryptography Research Center (CRC) today launched its own blockchain-powered carbon trading platform to facilitate the international trade of carbon tokens.
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In concrete terms, Emirati companies will be able to register their greenhouse gas (GHG) emissions on this open-source platform. In exchange, they will receive certified tokens attesting to the emissions reductions achieved.
These eco-responsible cryptos will be exchangeable both nationally and internationally. The aim is twofold: to give economic players a sense of responsibility and to provide them with effective tools for meeting their reduction targets.
Towards a green revolution in the world of Blockchain
To ensure the integrity of its exchange platform, the United Arab Emirates has opted for an innovative technical solution: the blockchain. This enables forgery-proof tracking of carbon token transactions and movements.
Thanks to this decentralized technology, all organizations will be able to register their CO2 emissions transparently. In addition, they will be encouraged to create carbon tokens attesting to the emission reductions achieved. Whether through carbon capture or the purchase of carbon credits from other entities.
The use of blockchain will therefore enable precise, secure and immutable tracking of each player’s emissions. Stimulating their participation in the collective effort to reduce global greenhouse gas emissions.
Above all, this blockchain has been designed to radically minimize its carbon footprint. Unlike the blockchains of Bitcoin or the older version of Ethereum, its architecture does not rely on an electricity-hungry “Proof of work” protocol. A strong signal for a technology long criticized for its ecological impact.
With this ambitious platform, the UAE confirms its leadership in green finance. This initiative could be emulated worldwide, accelerating the decarbonization of the global economy.
CEO and Editor-in-Chief of Coinpri I have been navigating the waters of Blockchain for 5 years already.
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