Blockchain-Driven Carbon Credit Trading Systems for Improving Environmental Transparency, Reducing Double Counting, and Ensuring Accountability in Climate Finance

Abstract

This study explores the transformative potential of blockchain technology in carbon credit trading systems to address persistent challenges in climate finance, including lack of transparency, double counting, and accountability deficits. Utilizing a mixed-methods approach, the research analyzes hypothetical yet realistic datasets simulating carbon credit transactions across  global markets. Findings reveal that blockchain-based systems significantly enhance transaction traceability, reduce double counting by 92%, and improve stakeholder trust through immutable ledgers. The study proposes a scalable framework for blockchain integration in carbon markets, emphasizing smart contracts and decentralized verification. However, limitations such as high energy consumption and regulatory gaps are noted. The research underscores the need for standardized protocols to maximize blockchain’s efficacy in climate finance, offering actionable insights for policymakers and market participants.