Abu Dhabi-based researchers have unveiled a new carbon trading platform built using blockchain technology, designed to trigger global interest in the exchange of carbon tokens.
The new offering is the brainchild of The Technology Innovation Institute (TII), one arm of Abu Dhabi’s Advanced Technology Research Council (ATRC), and is expected to play a pivotal role in the emerging carbon trading ecosystem, relying on tokenization.
Unveiled during the United Nations Climate Change Conference (COP28), TII says the platform will support the trade of carbon tokens associated with green projects in line with the climate ambitions of the United Arab Emirates (UAE). Experts have previously submitted that transparent carbon trading can be a decisive factor in achieving net zero emissions.
TII’s offering attempts to achieve transparency by leaning on blockchain, registering the carbon emissions from both public and private organizations on-chain. The trading platform makes provision for the use of auditors as an added verification layer to “establish a chain of trust” for key processes.
Details from the capture, storage, and trading of carbon credits will be on the public blockchain and available with TII clarifying that the private information of parties will remain protected.
“We are proud to announce this digitized tracking and trading platform at COP28, which represents the UAE’s drive to become a technology and innovation powerhouse and its commitment to leading the world’s climate action agenda,” said TII CEO Dr. Ray Johnson. “The UAE has provided the tool to ensure that trading can be done in confidence while mitigating human impact and maximizing the benefits to the environment.”
Global carbon credit market plans are still in flux, with global regulators negotiating for a workable framework. Approved at COP21 in Paris, the plan to establish an international credit market is expected to be finalized before the end of COP28, scheduled for December 12.
TII says it has circumnavigated the issue of energy consumption by developing a lightweight and efficient permission-based blockchain solution using an advanced consensus algorithm. A close look at TII’s offering indicates a reliance on public key infrastructure (PKI), a smart contract platform, and a high-security cryptographic stack.
“This tracking and trading platform was designed by our talented team of international experts and allows large numbers of verified users to carry out carbon tracking and trading transactions in confidence,” said Dr. Najwa Aaraj, TII’s Chief Researcher.
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