Application of Blockchain and IoT in Cap and Trade of Carbon Emissions

Rapid industrialization around the world has resulted in an exponential surge in greenhouse gas levels, particularly carbon dioxide (CO2). As of 2020, India is the third biggest carbon emitter worldwide accounting for 7% of global emissions. In India, around 25% of greenhouse gas emissions come from the industrial sector according to the reports of the International Energy Agency (IEA). Though there are laws regulating industrial emission, corruption in the pollution control boards and lack of transparency has led to inefficient pollution control. Hence, there is a need for an accountable and transparent procedure to monitor and limit the carbon footprint of the country. This paper focuses on developing a more accountable method to limit carbon emissions by implementing the carbon cap and trade technique. By utilizing the concept of Internet of Things (IoT), the project aims to develop and connect a resilient sensor network with blockchain. The emission levels from various locations are read using a sensor module which then updates the data to the cloud. The emission logs are then downloaded and stored using smart contracts on blockchain to prevent the data from being tampered or modified. The blockchain thus authenticates the emission logs and sends out a violation alert when the set threshold is crossed. The proposed project provides an efficient and transparent method for carbon emission monitoring and trading.