INSUBCONTINENT EXCLUSIVE:
Blockchain technology may make it easier to track and report emission reductionsThe mighty blockchain technology is not just the bedrock of
cryptocurrencies like bitcoin
The technology - in simple terms, a decentralised publicly distributed ledger consisting of blocks which record transactions - is also being
seen as an important tool in managing the carbon markets
After years of negotiations, a deal setting the rules for carbon markets has been reached at the COP26 meeting
The deal, as Reuters notes, will help in "unlocking trillions of dollars" to combat climate change
permit an entity (companies or countries) to emit certain amounts of carbon dioxide
In other words, the market allows developing countries like India to sell carbon credits it has earned by switching to less-polluting
technologies and rich countries to buy credits to offset their own emissions
Double counting that Chandra refers to is a situation where two countries in a transaction claim the same emission reduction to fulfil their
transparent, third-party verified, and compliant to Article 6 of the 2015 Paris Agreement
All sorts of transactions in the system are in public records via an immutable distributed ledger - records that can remain unchanged
Interestingly, the transactions in the marketplace can be completed through fiat currency, Bitcoin or Ethereum (cryptocurrencies)
Yet, the reality is more complex
former two validate transactions through a consensus method (digital signatures) and not through mining
