National Key Research Project: “Blockchain” for Carbon Neutralization

The launch of a “Blockchain-based credible carbon transactions and carbon neutralization demonstration applications” project, combined with the State’s key R&D plan declaration guidelines, demonstrates the ability to solve the contradiction between clean energy production, transactions, consumption and trusted transactions with blockchain technology.

China’s National Blockchain Technology Innovation Center Aims to Achieve Carbon Neutralization

The Chinese government has recently given the green light to thecarbon neutralization launch of the National Blockchain Technology Innovation Center in Beijing. Led by the Beijing academy of Blockchain and Edge computing (BABEC) and backed by the Municipal Government of Beijing, the center will work to enhance technological confidence in the blockchain sphere while supporting the development of core technologies and fostering top talent in the industry. This move comes as part of a newer drive by the government to develop blockchain solutions for various industries, including financing and infrastructure.

The purpose of the centre is to promote technological self-reliance and improvement and to develop core blockchain applications for the digital economy. It will partly involve the cultivation of top talent and industrialization of the blockchain technology. This move by the Chinese government comes as a surprise amidst continued opposition to cryptocurrencies and plans to launch a Central Bank Digital Currency (CBDC). On the flip side however, blockchain technology is being propelled forward as part of the nation’s technological innovation capabilities, leading to a range of potential applications and use cases.

Among these potential applications is the idea of carbon neutrality, an initiative aiming to reduce carbon emissions through the use of blockchain technology in tracking and monitoring emissions. This is a timely project considering the urgent need to reduce emissions caused by climate change and its devastating effects. In particular, blockchain-based carbon neutrality management applications have been receiving attention.

The National Blockchain Technology Innovation Center has already been supporting research on this front. For example, Nanfang Power Grid Yunnan Power Grid Corporation has recently taken the lead on a “Blockchain -based credible carbon transactions and carbon neutralization demonstration applications (application demonstration category)” project. This project aims to solve the main contradictions between clean energy production, transactions, consumption and multi-links by implementing a trusted blockchain in the carbon industry.

These projects are part of the recently declared Blockchain Key Research and Development Plan Guidelines issued in April 2022 by the state. It is clear that the focus of the Chinese government is to make blockchain an integral part of the economy and individuals’ livelihood, as demonstrated by its aggressive promotion of blockchain projects. Some suitable applications of such technology include the formation of new decentralized economies, such as solutions to address climate change through carbon neutrality management.

China is taking significant steps towards building a blockchain-enabled economy, with hopes to leverage innovations in the area. It is likely that this national Blockchain Technology Innovation Center, and other local governments efforts, will result in the increasing utilization of blockchain capabilities to reduce the carbon footprint of the nation. If successful, this could prove to be a major step in the battle to combat climate change, providing an effective new way to help reduce greenhouse gas emissions.