ECONOMIC POTENTIAL OF BLOCKCHAIN IN COMBATING CLIMATE CHANGE
Abstract
This article examines the economic potential of blockchain technology as a tool for combating global climate change. The study is motivated by the growing contradiction between the high energy consumption of cryptocurrency networks and the need for transparent, efficient climate-finance instruments. The research methodology combines systematic literature review, comparative analysis of consensus mechanisms, and case-study evaluation of real-world blockchain-based climate projects. Data from the Cambridge Centre for Alternative Finance, the Crypto Carbon Ratings Institute, Bloomberg Intelligence, and MarketsandMarkets are used to quantify energy consumption, carbon footprints, and market projections. The key findings demonstrate that while Bitcoin's Proof-of-Work mechanism consumes approximately 211 TWh per year (around 0.83 % of global electricity), Ethereum's transition to Proof-of-Stake has reduced its energy use by over 99.99 %, to just 0.0026 TWh annually. The tokenized carbon-credit market is projected to grow from USD 414.8 billion in 2023 to USD 1.6 trillion by 2028, creating substantial new economic opportunities. Decentralized Autonomous Organizations such as KlimaDAO and protocols like Toucan have processed over 20 million tonnes of CO₂ credits on-chain. Practical applications include peer-to-peer renewable energy trading platforms (Powerledger), green-energy certificates (Energy Web Foundation), and solar-panel tokenization projects. The article also analyses contributions by Ukrainian researchers to the study of blockchain's environmental impact and green digital economy formation. Risks including greenwashing, credit-quality concerns, and regulatory uncertainty under the EU's MiCA framework are critically evaluated. The practical value lies in providing economic actors and policymakers with a structured assessment of blockchain's climate-action potential and recommendations for integrating Web3 and artificial intelligence into climate initiatives by 2030.
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