The world’s largest CO2 emitting country is using Blockchain
to transition to carbon neutrality.
China’s top economic planning body gave the green light to trials using Blockchain for green energy trading to begin across the country, the National Development and Reform Commission (NDRC)
said on its website.
The information is important given that China is the most polluting country in the world. As reported by La Tercera newspaper, China’s emissions of six heat-trapping gases, including carbon dioxide, methane and nitrous oxide, increased in 2021 to 14.09 billion tons of CO2 equivalent in 2019, which exceeded the sum of Organization for Economic Cooperation and Development (OECD)
members by about 30 million tons, according to the New York-based climate research group. China accounts for 27% of the planet’s carbon emissions, followed by the United States with 11% and India with 6.6%.
It is worth noting that in the face of this situation, President Xi Jinping has said he believes he will peak carbon emissions by 2030 and, from there, achieve net zero emissions by 2060.
Blockchain and green energy
According to the information, the NDRC officially responded to China’s two national grid operators, State Grid Corporation of China and China Southern Power Grid Corporation,
about the pilots, an NRDC representative said in an interview posted on the commission’s site.
Blockchain is one of the technologies that can be implemented in green power trading because it can “securely record the information of each green power production, transaction and consumption link,”
the NRDC interview said.
The two companies will set up two centers, one in Beijing and one in Guangzhou, the state-run newspaper reported Tuesday. State Grid, the world’s largest utility operator, applied for a patent for blockchain-based
certificates of green energy transactions, the commission said.
The NDRC hopes the trading system will not only help China achieve its carbon targets by incentivizing green energy use, but also be a Chinese solution to global energy problems.
Importance of the project for China
The interview on the NDRC website says why the work is being done: “In order to achieve
In order to achieve the multiple goals of low-carbon energy transformation, security, reliability and affordability at the same time, it is necessary to deepen electricity system reform and conduct explorations and innovations in institutional mechanisms and market building. In carrying out green power transactions, some users are distinguished who are willing to take more social responsibilities and directly trade with wind power and photovoltaic power generation projects to guide green power consumption in a market-oriented manner, reflecting environmental value. green power and green power generation Revenues will be used to support the development and consumption of green power and to better promote the construction of new power systems.”
In addition, the Commission says it believes that “the conditions for developing a green energy market are ripe.”
“Companies are in demand. Many companies have a strong willingness to engage in green energy transactions. Many companies have expressed a willingness to pay more for the environmental attributes of green power. In the future, as companies participate in the transaction, the scale of transactions will continue to expand.”
He adds that there is willingness in the regions, and emphasizes that the technology is achievable. Here he names Blockchain :
“Using new technologies such as Blockchain, it is possible to comprehensively record the information of each green power production link, transaction, consumption, etc., to ensure that it cannot be tampered with and track the entire life cycle of green power. Currently, State Grid has applied for a patent for the Blockchain-basedgreen certificate transaction system.”
Blockchain in China
It’s worth remembering that this isn’t China’s first foray into Blockchaincrypto and beyond. In April 2020 it launched the Blockchain Services Network (BSN ) for which the Chinese government thought of a variety of use cases: These included smart city applications, as well as obtaining information on the management of public resources. In particular, the partnership mentioned energy conservation, and listed identity registration and data storage as opportunities for BSN.
Sources: Development Commission, Coindesk, <a href=”https://www.latercera.com/pulso-pm/noticia/las-emisiones-de-co2-de-china-superan-todos-los-paises-desarrollados-juntos/HXFXMCPWGNG7RI7ERFGOJCHXNQ/”>La Tercera, archive
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