Sanneke Kloppenburg recently co-authored an extremely informative article (Climate & Crypto) in which she and her two colleagues conduct an investigation into what they dubbed “climate cryptocurrency governance.”
They analyzed documents from various international organizations dealing with climate governance and found many theses that underscore the immense transformative potential of the blockchain.
Good plans galore, Paris Climate Agreement, Sustainable Development Goals of the UN and this summer a National Climate Agreement for Holland. Municipalities, provinces, water boards and NGO’s create local climate policy. Companies have increasingly real and stringent commitments. Local energy cooperatives and other initiatives strive for an energy transition and greening of the neighborhood. But are those plans realistic enough, and does everyone know what to do?
Climate & Crypto: The Role of Blockchain in Addressing the Climate Crisis
The intersection of blockchain technology and climate change offers an innovative approach to addressing one of humanity’s greatest challenges. Recent research, including the insightful work of Sanneke Kloppenburg and colleagues, explores the concept of “climate cryptocurrency governance,” a field that envisions blockchain’s transformative potential in environmental efforts.
The Promise of Blockchain in Climate Action
Blockchain technology’s decentralized nature presents unique opportunities for promoting transparency and accountability in climate governance. According to the findings of Kloppenburg et al., blockchain can support various international frameworks such as the Paris Climate Agreement and the United Nations’ Sustainable Development Goals (SDGs). These frameworks rely on coordinated action and verifiable progress—areas where blockchain’s tamper-proof ledgers excel.
Governments, NGOs, and private entities are increasingly exploring blockchain for:
- Carbon Trading: Blockchain facilitates the creation of transparent carbon credit markets, allowing real-time tracking and verification of emissions reductions.
- Renewable Energy Incentives: Tokens like SolarCoin reward solar energy production, while EnergyCoin encourages climate-friendly choices, assigning value to reduced CO2 emissions.
- Supply Chain Accountability: Blockchain ensures sustainability in supply chains by verifying the ethical sourcing of materials and reducing environmental impacts.
Blockchain and Climate Crisis: An In-Depth Analysis of Potential and Challenges
Analysis of Blockchain Potential for Climate Action
- Transformative Potential: Kloppenburg’s research highlights the immense transformative potential of blockchain within climate governance. This technology could play a crucial role in achieving targets set by international agreements like the Paris Climate Agreement and the United Nations SDGs.
- Incentives for Sustainable Energy Production: Cryptocurrencies such as SolarCoin incentivize solar energy production by rewarding producers with a currency based on energy output. Similarly, EnergyCoin promotes eco-friendly choices by providing digital tokens that represent avoided CO2 emissions, which can have exchange value within local communities.
- Facilitation of Climate Token Trading: Blockchain simplifies trading of climate-oriented tokens and cryptocurrencies. However, unlike existing blockchain solutions focused on carbon markets, the supply and pricing of climate tokens are not directly tied to carbon metrics.
Practical Examples and Local Initiatives
- Local Climate Policies: In countries like the Netherlands, municipalities, provinces, water boards, and NGOs collaborate on local climate policies. Companies and energy cooperatives drive energy transitions and eco-friendly neighborhood initiatives.
- Small Steps Matter: B.J. Fogg’s TED Talk emphasizes dividing large goals into smaller tasks to clarify responsibilities and timelines. This incremental approach facilitates the achievement of ambitious plans.
Challenges and Considerations
- Financialization and Markets: Markets and financialization continue to influence the climate narrative, whether blockchain is involved or not. Ensuring the technology’s sustainable use, rather than financial speculation, remains a challenge.
- Coupling with Carbon Metrics: Unlike blockchain-based carbon market solutions, climate tokens and cryptocurrencies are often not directly linked to carbon metrics, complicating their environmental impact assessment.
Examples of Blockchain Projects in Climate Governance
- SolarCoin (SolarCoin Website):
Designed to promote solar energy, SolarCoin provides digital tokens as rewards for verified solar energy production, encouraging a shift toward renewable energy sources. - EnergyCoin (EnergyCoin Foundation):
This initiative enables communities to exchange tokens representing avoided CO2 emissions, fostering local climate-friendly economic systems. - Blockchain-Based Carbon Markets:
By leveraging blockchain’s transparency, these markets enable companies and governments to trade carbon credits securely and efficiently, ensuring compliance with international climate goals.
A Call for Collaboration
Achieving climate goals through blockchain will require collaboration across sectors. Governments, private companies, and local communities must work together to:
- Develop energy-efficient blockchain solutions.
- Establish standards for climate-related cryptocurrencies.
- Educate stakeholders on blockchain’s role in sustainability.
Conclusion
Blockchain technology is not a panacea, but its application in climate governance offers innovative pathways to address the global climate crisis. By fostering transparency, efficiency, and collaboration, blockchain can complement existing efforts to reduce greenhouse gas emissions and promote sustainable practices.
For more insights on this topic, explore the following resources:
Learn more about Sanneke Kloppenburg’s work at Wageningen University: Sanneke Kloppenburg.
Link to the original article on CIALU.NET: Original Article.
Last update: January 2025