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Blockchain for climate action

The European Commission aims to use innovations in blockchain technologies to help fight climate change.

© Markus Spiske from Pexels

Blockchain technologies: Digital innovations to enable climate action

Blockchain is a powerful tool that can significantly improve the transparency, accountability and traceability of greenhouse gas emissions. It helps companies provide more accurate, reliable, standardised, and readily available data on carbon emissions.

Blockchain can be utilised through smart contracts to better calculate, track and report on the reduction of the carbon footprint across the entire value chain. It can provide instant authentication, verification of real-time data and clear data records.

Blockchain technologies can transform individual efforts of companies into a networked effort. And, it can clearly pinpoint the contributions individual actors make to reduce their carbon footprint. The spirit of competition and market-based incentives create a win-win situation for all.

Clean technology startups play a critical role in this process. They develop blockchain-enabled platforms that bring together all stakeholders, including companies, government and citizens.

The decentralised approach of blockchain provides both breadth and depth. It engages and enables everyone to participate in the calculation. It allows for tracking and reporting of reductions in greenhouse gas emissions along the entire supply chain, including manufactures, suppliers, distributors and consumers.

Innovations in blockchain technologies are powerful enablers for collective action to fight climate change. Recognising the unique value of clean technology startups in this process is of great importance. Public and private investors are starting to take notice of their unique value.

Key activities

Some steps the EU is taking to harness blockchain for climate action include:

  • promoting the development and adoption of blockchain technologies best suited to overcome the tragedy of the commons and incentivise actors to reduce their carbon footprint and consider the societal impact of their actions;
  • developing technical assistance and investment programs that support blockchain-based digital innovations that contribute to climate change mitigation and adaptation;
  • accelerating blockchain-based solutions that establish a network between suppliers and consumers, moving beyond the individual to include all societal stakeholders;
  • supporting sustainable finance initiatives and promoting the use of blockchain-enabled technologies for financing climate actions through green bonds, fintech solutions and alternative finance mechanisms;
  • supporting EU countries and national government agencies to collaborate in the development and adaptation of blockchain-based solutions that support climate actions and the reduction of greenhouse gas emissions;
  • developing partnerships with strategic partners, including UN agencies and international financial institutions, such as the World Bank, the European Investment Bank, and the European Bank for Reconstruction and Development;
  • supporting the strengthening of the clean technology innovation ecosystem in Europe and improve access to finance for clean technology startups and small and medium-sized enterprises.

Latest

NEWS ARTICLE |
European Blockchain Pre-Commercial Procurement

The European Commission is looking for novel blockchain solutions for the European Blockchain Services Infrastructure. The procurement contracts have been awarded to 7 contractors and the first phase of solution design is ongoing.

NEWS ARTICLE |
Apply for the 2021 Procura+ Innovation procurement of the year award

Are you a public procurer in Europe who completed an innovation procurement that led to significant improvements of public goods, services, processes or infrastructure? Apply for the award by 30 April 2021. There is also a specific award category for outstanding innovation procurement in ICT. The award is part of the activities of the EU-funded Horizon 2020 project Procure2Innovate that is setting up a European network of national competence centres around Europe.

NEWS ARTICLE |
Apply for free of charge assistance for your next Innovation Procurement

Are you a public buyer that could use some help in preparing and implementing your next innovation procurement? Get in touch with the European Assistance for Innovation Procurement (EAFIP) to request local assistance now. Public buyers from across all domains are welcome: for example public transport, healthcare, environment, water, energy, public administration, construction, security, education etc. Next deadline for submission of applications: 25 September 2021

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