Blockchain Fights Climate Change
Jessie A Ellis Apr 27, 2023 09:51
The World Economic Forum (WEF) has published a white paper outlining how blockchain technology can aid in the fight against climate change. Blockchain can improve market transparency, enhance trust and ambition within climate negotiations, democratize access to climate action, and funnel more funds to project developers. The WEF also stressed the need for constructive regulation to support digital climate innovation.
According to a recent white paper published by the World Economic Forum (WEF), the use of blockchain technology has quickly become one of the most important weapons in the battle against climate change. The report explains how blockchain technology may offer the essential infrastructure to combat climate change "at speed and scale" by increasing market transparency, building trust and ambition within climate discussions, democratizing access to climate action, and funneling more funding to project developers. Brynly Llyr, who is in charge of blockchain and digital assets at the Crypto Impact and Sustainability Accelerator (CISA) of the World Economic Forum, emphasized how important it is to investigate new technologies in order to combat climate change. She said that "global climate infrastructure, tools, and coordination technologies can all help us keep pace with our changing planetary ecosystem." In situations like these, technology like blockchain and shared infrastructure may be of great assistance.
In its white paper, the World Economic Forum (WEF) emphasized the need of supportive legislation in order to foster digital climate innovation. According to Dana Gibber, CEO of the blockchain climate project Flowcarbon, industry experts have come to the conclusion that governments should take into consideration the different uses of blockchain technology that go beyond cryptocurrencies. Gibber stressed the significance of policymakers understanding the potential of blockchain technology by adding that "this goes beyond cryptocurrencies and encompasses what you can build on blockchain." In doing so, Gibber drew attention to the fact that it is important for politicians to recognize the potential of blockchain technology.
In the meanwhile, the prominent cryptocurrency exchange Coinbase is also lobbying for further regulatory clarity in the digital asset industry in the United States. On April 25, Coinbase initiated legal action in an effort to push the Securities and Exchange Commission to take action on its rulemaking petition, which has been outstanding since July of last year. The court action was launched in an effort to force the SEC to act. Additionally, the exchange has initiated a campaign for nonfungible tokens that advocates for crypto regulations that are more rational.
The promise of blockchain technology to tackle climate change is gaining greater recognition among business leaders; nevertheless, this potential cannot be realized without supportive and constructive regulation from politicians. As the world continues to struggle with the critical problem of climate change, the use of blockchain technology is expected to become an increasingly important part of the initiatives under way to build a more sustainable future.
Image source: Shutterstock