The WEF studies the use of blockchain to counter climate change impact

The WEF studies the use of blockchain to counter climate change impact

The World Economic Forum (WEF) published a research paper highlighting the use of blockchain for scaling climate action. It is poised that Digital transformation across the environment and climate sector is an urgent opportunity for meaningful action. Other sectors, from retail to manufacturing, have proven the efficiency and productivity benefits of connectivity, automation and data analytics, but the climate sector, where the Intergovernmental Panel on Climate Change (IPCC) has recently underscored the necessity of swift action is still largely analogue and relies on limited and outdated data.

To not fully explore and adopt available digital transformation and innovation is the decision to hinder necessary progress on climate action. Conventional methods cannot be relied on to tackle perhaps the biggest-ever threat to humanity. Global climate infrastructure, tools and coordination technologies are needed to keep pace with the changing planetary ecosystem, transcend borders and span social, economic, cultural and governmental domains.

The paper explored the critical facets that substantiate this generation’s climate challenge
and the things required to take place to meet the Paris Agreement on climate targets. This chapter creates a bridge to how blockchain technologies can help the world meet these targets and create a better future for generations to come. It underlined that challenges include both private and public opacity related to climate goals, inadequacies related to accountability mechanisms and interoperability of tracking systems.

It further scrutinizes the value digital technologies bring to decarbonization and climate action. It mentions that challenges that stymie progress towards meeting climate targets, such as resource and capital allocation and coordination, are being reimagined through decentralized systems thinking. Blockchain provides an enabling infrastructure with transparency, verification, accountability and democratization as its core pillar.

The published document also provided the foundation for blockchain-enabled climate solutions within the wider context of web3 and a specific focus on regenerative finance (ReFi). ReFi has emerged as a technological ecosystem that uses blockchain’s unique features and other cutting-edge technologies to reimagine extractive economic systems and incentivize regenerative practices. This section provides critical insight into how this diverse industry understands its mandate, objectives and mission as it relates to the broader climate aspirations of the global community.

The research delves deeper into key insights, divided into two sections mentioning industry trends and industry challenges. It also recommended the next steps towards responsible climate innovation and action for three core groups, including policymakers and lawmakers, other climate sector stakeholders, and climate blockchain organizations. It propounds that Climate blockchain organizations need to stay laser-focused on solving real-world problems and providing evidence-based, measurable impact to
ensure industry momentum and credibility. Staying committed to scaling real, high-quality, verifiable.

There is consensus on the need for constructive regulation and productive dialogue between the blockchain industry, policymakers and traditional businesses. Blockchain adoption and implementation across decarbonization sectors will require thoughtful coordination, meaningful action across layers of society and industry, education and balanced regulation.

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