Ernst & Young (EY) has developed a platform for companies to monitor carbon emissions. The professional services firm revealed the new platform Wednesday at its Global Blockchain Summit in London.
The beta version of EY OpsChain ESG, built on the Ethereum network, is available on the EY Blockchain SaaS platform. The new platform tracks carbon emissions and credit traceability. It utilizes carbon emission tokens created by InterWork Alliance. The standards organization, along with EY, is a member of the Global Blockchain Business Council.
The urge to track carbon emissions and credits gave birth to the EY OpsChain ESG. Authorities concerned with the environment and social governance have driven companies to seek blockchain technology to monitor such elements. EY, in particular, is a strong proponent that Ethereum should be used for this.
Paul Brody, Global Blockchain Leader at EY, stated about this new platform:
“Detailed traceability allows for tracking of emissions inventory through tokenization including the ability to link carbon output to specific product output. By using carbon credit tokens, either created or sourced on the market, enterprises can now have visibility into their actions toward decarbonisation.”
Forex Suggest reported that the amount of Ethereum’s CO2 emissions went from 21.95 million tons to 8,824 tons. This result was due to Ethereum shifting from the previous proof-of-work(POW) model to the new proof-of-stake(POS) system.
Roles of Blockchain Technology in Protecting Our Environment
Blockchain-based systems can enable peer-to-peer energy trading, where people or organizations can purchase and sell renewable energy directly. This decentralized method promotes the use of renewable energy sources, minimizes dependency on fossil fuels, and stimulates the use of dispersed energy generation.
Blockchain can aid in effectively managing energy networks by improving energy distribution, balancing demand and supply, and promoting energy saving. The decentralized structure of blockchain eliminates the need for a central authority. This characteristic makes it less vulnerable to single points of failure and potential data tampering.
This resilience is especially important in environmental settings, where reliable data and trust are critical for monitoring and responding to concerns, like climate change, deforestation, and pollution. A distributed network of sensors and devices enabled by blockchain can improve data collecting and provide real-time environmental monitoring and management insights.