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Blockchain and GHG Accounting: Integrating Carbon Footprint Data for More Reliable Reporting Traditional carbon footprint calculation and greenhouse gas (GHG) reporting processes are often time-consuming, costly, and lack transparency. Dr. Kun-Hsing Liu and Dr. Shih-Fang Chang have proposed an innovative framework that integrates blockchain technology to address these challenges. The Limitations of Current Practices As highlighted in the research, calculating and disclosing a product's carbon footprint can cost companies between $16,000-27,000 USD and take up to 12 months, especially for products with complex supply chains. This is due to the tedious process of collecting emissions data through questionnaires and interviews with suppliers. Furthermore, there are accountability issues with traditional GHG reporting that relies on self-reported data prone to errors, omissions or misrepresentation - enabling "greenwashing" practices. The Proposed Blockchain Framework The research proposes a three-layered framework that integrates blockchain with carbon footprint accounting: 1) Calculation Layer: Companies collect emissions data from suppliers either manually or via automation like IoT sensors. 2) Blockchain Layer: Certified emissions data is recorded on an immutable, distributed blockchain ledger. This enables verification, consensus, and transparency. 3) Integration Layer: A carbon footprint database integrates emissions data from the blockchain and traditional reporting. This provides an auditable, centralized source for review and analysis. Key Benefits of the Framework * Decentralized and immutable emissions data storage on the blockchain prevents tampering. * Smart contracts automate verification of reported emissions against standards. * Tokenization of carbon credits enables secure, authenticated trading and tracking. * Transparency allows audits by regulators, investors and the public - reducing greenwashing. * Integration database consolidates scattered blockchain data for decision-making. * Improves efficiency by automating data collection and reusing verified blockchain emissions data. The research study emphasizes how this blockchain integration can enable more systematic carbon management - helping companies select lower-emission suppliers, aiding government carbon strategies, and allowing environmental groups to monitor emissions transparently. While technical challenges around implementing compatible blockchain systems remain, the researchers argue this framework provides a credible path toward more reliable, tamper-proof GHG reporting and carbon footprint accounting. In summary, this pioneering research proposes a blockchain-based solution that could revolutionize emissions accounting - increasing transparency, auditability and trust in carbon data to drive more effective climate action. reference ---> #ghg #blockchain #sustainability #carbonfootprint
Blockchain solutions for GHG accounting are considered more reliable conventional accounting systems.
CO₂e-expert @ The Footprinters 🛠️ Gratis tools: footprintcalc.org & footprintdata.org
6moIf you see the problems the EU is having with developing a product footprint method (PEF), how realistic is it that companies all over the world will participate in one system? Who will be in charge of setting up the system? And, companies will still have incentive to falsify data (to look greener than competitors) and this problem is not solved with this technology.