The world’s largest CO2 emitting country is using Blockchain to transition to carbon neutrality.
China’s highest 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 relevant because China is the most polluting country worldwide. According to various sources, China’s emissions of six heat-trapping gases, including carbon dioxide, methane, and nitrous oxide, reached a high peak in 2021 to an amount that surpassed 14,090 million tons of CO2.
China’s pollution exceeded, by far, the sum that members of the Organization for Economic Cooperation and Development (OECD) registered, which marks about 30 million tonnes, according to the New York-based climate research group.
China accounts for 27% of the planet’s carbon emissions, followed by the United States of America with 11%, and India with 6.6%.
Another point to consider is that in this situation, President Xi Jinping clarified that he believes that he will reach maximum carbon emissions before 2030 and, from there, achieve net-zero emissions in 2060.
Blockchain Can Work with Green Energy
According to the information, the NDRC officially responded about the pilots to China’s two inner grid operators, State Grid Corporation of China and China Southern Power Grid Corporation.
NRDC representative stated during an interview posted on the commission’s site that Blockchain is one of the technologies that can work in green energy trading because it could safely record information of every link of green energy production, its transaction, and subsequent consumption.
The two companies will create two centers. The first center would be in Beijing and the other in Guangzhou, according to information from the state-run daily. According to the commission, State Grid, which is the world’s largest utility operator, has already applied for a patent for blockchain-based certificates of green energy transactions.
The NDRC hopes that this trading system could help China achieve its carbon reduction goals by incentivizing green energy use and become a Chinese solution to global energy problems.
The Project Means a Lot for China
In the interview on the NDRC website, there is an explanation on why this work is being under development. China intends to achieve the multiple goals of low-carbon energy transformation, safety, and reliability at the same time.
China considers there is a need to solidify the reform of the electricity system and develop more improvements in institutional archetypes. There would also be a forge of new markets.
When users carry out green energy transactions, some would be willing to assume more social responsibilities and seal businesses directly with wind and photovoltaic power generation projects to guide green energy consumption in a market-oriented manner.
By: Jenson Nuñez