FINANCING CARBON REMOVAL THROUGH BLOCKCHAIN TECHNOLOGY: A CASE STUDY OF BLOCKCHAIN TOKENS
Vanja Vejzagica
aRIT Croatia, Zagreb, Croatia, vanja.vejzagic@croatia.rit.edu
Abstract
In the fight against climate change, innovative financing solutions are critical to accelerating the deployment of carbon removal technologies. This paper explores the novel application of a blockchain-based asset, smart contracts in the form of tokens, designed to fund carbon removal initiatives. By leveraging blockchain technology’s inherent transparency and security, tokens offer a unique approach to mobilising resources and incentivising investments in environmentally critical projects. This study delves into the operational framework of tokens, examining their integration into carbon removal projects and evaluating their effectiveness as a financial instrument. This paper assesses the impact of tokens on project funding and carbon reduction outcomes, providing insights into the scalability and potential barriers to broader adoption. The findings suggest that blockchain technology not only enhances the efficiency of funding environmental projects but also ensures accountability and stakeholder engagement. The implications of this study are significant, offering a roadmap for policymakers and investors interested in harnessing the power of digital currencies to meet global sustainability goals.
Keywords: crypto asset, tokenization, carbon removal, sustainability, finance
JEL Classification: Q56, G32, G23
To be cited as: Vejzagic, V. (2024) Financing carbon removal through blockchain technology: A case study of blockchain tokens. International Journal of Management Courses, 26(3), pp. 132-141.