UAE to use blockchain technology on its way to carbon neutrality.
The United Arab Emirates (UAE) is launching a blockchain-based carbon credit system in partnership with the Industrial Innovation Group and the Venom Foundation to work towards carbon neutrality by 2050.
The UAE Ministry of Climate Change and Environment (MCCE) is at the forefront of this new venture. According to the MCCE announcement, blockchain technology will help to securely track carbon credits, giving transparency when credits are sold or traded.
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What makes this system unique is the unchangeable nature of the data once it is recorded on the blockchain. This secure process enables government agencies like the MCCE to issue or sell credits to businesses. The traded credits can be used by holders to cover specific carbon emissions or to sell to other organizations aiming to compensate for their emissions.
The UAE government has recently announced its intentions to change the nation's approach to climate change and carbon footprint. According to the announcement, the country aims to become fully carbon neutral by 2050.
UAE Minister of Climate Change and Environment Mariam Al Mheiri has expressed optimism about this new direction, saying:
The UAE believes in its ability to make a difference in this field and has pledged, through the third update of its second Nationally Determined Contributions, to reduce its emissions by 40 percent compared to a business-as-usual scenario, an increase of 9 percent over its previous pledge.
Though the UAE is 33rd globally for total emissions, it ranks notably high - sixth globally per capita.
This commitment to reduce carbon emissions is not confined to the national level. Each of UAE’s seven emirates introduced local programs to align with the "net zero by 2050" campaign.
The UAE's concrete steps toward carbon neutrality through this unique blockchain partnership set an example that may inspire other nations to follow suit.
