Here is How Blockchains are Assisting with Reducing Environmental Impact

Over the last several years, governments and organizations worldwide have discovered that mitigating climate change and biodiversity loss challenges are only attainable through innovation. One of the means that could be highly useful in tackling the climate crisis is blockchain

Blockchain could be utilized to ensure sustainable business practices via:

Renewable energy

As per UN Environment Programme UNEP’s report, the distributed ledger technology (DLT) can provide vast improvement by enabling investors, renewable energy developers, and purchasers to cooperate on a common platform with established global standards for compliance and due diligence. 

An innovative app designed in Australia has started looking at the impact of blockchain. Based in Uttar Pradesh, India, this pilot project enables homeowners with solar panels on their rooftops to sell power to others on the grid. 

It includes setting up prices in real-time and implementing transactions over the blockchain. These systems can help increase the deployment of renewable energy and help states move away from unsustainable electricity subsidies. 

Sustainable supply chain management

One of the most important uses of blockchain is for a sustainable and environmentally friendly supply chain. DLT technology is ideal for tracking products from the manufacturer and helps prevent inefficiency and waste by making supply chains transparent. 

Moreover, the DLT technology also enables consumers to be better informed of how the products were made and shipped. It will enable them to make environmentally friendly choices. 

A new blockchain project focuses on making supply chains transparent. It is a public open-source blockchain developed for providing material business benefits to developers and financial services participants utilizing its registry, ledger, and exchange capabilities throughout multiple markets.


An area of environmental sustainability where blockchain can have a significant impact is recycling. By implementing a recycling program on the blockchain, organizations can give financial incentives to individuals in the form of cryptographic tokens. 

It could be in exchange for depositing recyclables such as plastic cans, bottles, containers, etc. It enables tracking of essential data such as cost, volume, and profit and also helps evaluate the environmental impact of an individual or company participating in the program.  

Many organizations are already working on such Blockchain-based recycling programs. For example, some companies are working toward creating an application to help monetize ocean plastic. 

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