Researchers in Abu Dhabi have launched a blockchain-driven carbon trading platform aimed at sparking global interest in carbon token exchanges. This innovative platform, developed by the Technology Innovation Institute (TII), a part of Abu Dhabi’s Advanced Technology Research Council (ATRC), is expected to play a significant role in the growing carbon trading ecosystem through the use of tokenization.
Unveiled at the United Nations Climate Change Conference (COP28), the platform is aligned with the UAE‘s climate goals and will facilitate the trade of carbon tokens linked to eco-friendly projects. Experts believe transparent carbon trading can be instrumental in achieving net zero emissions.
TII’s platform leverages blockchain to ensure transparency by recording carbon emissions data from both public and private organizations on-chain. Additionally, the system incorporates auditors as an extra layer of verification, aiming to establish trust across all processes. While all data regarding the capture, storage, and trading of carbon credits will be available on the public blockchain, TII has assured that the private information of participants will remain secure.
“We are thrilled to introduce this blockchain-based platform at COP28, reflecting the UAE’s ambition to become a leader in technology and innovation, as well as in the global climate action agenda,” said Dr. Ray Johnson, CEO of TII. “Our solution provides a secure environment for carbon trading, ensuring that environmental benefits are maximized while minimizing human impact.”
The global carbon credit market is still under development, with regulators working on a comprehensive framework. The establishment of an international carbon credit market, first approved at COP21 in Paris, is expected to be finalized by the end of COP28 on December 12.
TII has addressed concerns about the energy consumption of blockchain technology by developing a lightweight, efficient, permission-based blockchain that uses an advanced consensus algorithm. The platform incorporates public key infrastructure (PKI), a smart contract system, and a highly secure cryptographic stack.
“This platform was built by our international team of experts to enable verified users to track and trade carbon credits securely and efficiently,” added Dr. Najwa Aaraj, Chief Researcher at TII.
