Chainlink Labs, a blockchain oracle solution provider, and Tecnalia a European research institute, have released a new report that examines the role blockchains play 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.”
The report’s key findings include the issuance of carbon credits or consumer rewards when predefined energy goals are met, and the use of parametric energy conversion agreements to guarantee performance or uptime for 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.
Miles Austin, CEO of Hyphen Global AG, stated that companies must be able to accurately track and report their emissions in order to establish baselines and meet 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.”