This post is originally published in Data Driven Investor.
Global warming has become a dire threat to the environment in the past decade. The average temperature of the globe has increased by 0.18 degree centigrade per decade since 1981. In comparison, it raised by 0.07-degree centigrade from 1880 to 1980. This accelerated increase in temperature has several catastrophic effects – rising sea levels, loss of ice mass in the poles and mountain glaciers worldwide, frequent extreme weather conditions such as hurricanes, wildfires, droughts, and floods, and cloud and vegetation cover changes.
There is not enough action taken to keep the temperature increase in check. Scientists have empirically proved that the excessive burning of fossil fuels has released large amounts of heat-trapping greenhouse gases, such as carbon dioxide, methane, etc. These gases are warming the world at an unprecedented pace.
Blockchain is one of the best-suited technologies for achieving the Paris Climate Accord goals. It can bring together the disparate stakeholders, whose contributions are essential to reach the decarbonization targets. It provides the transparency required in tracking carbon emissions. Smart contracts help in accurate calculation of the offset credits. The platform makes it easier to tokenize and trade carbon credits.