A new report from blockchain oracle solutions provider Chainlink Labs and European research institute Tecnalia examines the role of blockchains in managing climate change.
The report, “Managing Climate Change in the Energy Industry With Blockchains and Oracles,” focuses on accelerating the transition from fossil fuels to clean energy sources through blockchain technology.
“A data-driven backend infrastructure is critical to propelling the cross-sector collaboration needed to address the climate crisis,” Chainlink Labs Managing Director William Herkelrath said. “By using Chainlink to bridge some of the highest-quality climate data in the world onto blockchains for energy and climate initiatives, we can give the clean energy sector the tools it needs to expand its impact.”
Key report findings include issuing carbon credits or consumer rewards when predefined energy objectives are met and utilizing parametric energy conversion contracts to guarantee performance or uptime requirements of renewable energy installations.
“During this period of major infrastructure and market transformation, utilities, service providers and governments can use blockchain technology to digitize and assign value to clean energy investments and design fully automated incentive systems for participating in sustainable practices,” Tecnalia Energy, Climate and Urban Transition Manager Jose Luis Elejalde said.
Hyphen Global AG CEO Miles Austin said companies need the ability to accurately track and report emissions to establish baselines and reach climate commitments.
“With validated climate data now available on blockchains thanks to our work with Chainlink, we can begin building more sophisticated, equitable, and efficient financial products and services that enhance the mitigation of climate risks,” he said. “We can now supply validated real-world measurements to dynamic carbon assets. This gives confidence to investors, capital markets, banks, regulators, and so on.”