Unlocking the transformative potential of blockchain to enhance transparency and efficiency in voluntary carbon markets for a sustainable energy transition

This Perspective explores the transformative potential of blockchain technology within the framework of Voluntary Carbon Markets (VCMs), focusing specifically on its role in accelerating energy transition projects. With VCMs projected to reach an annual valuation of US$500 billion by 2050, their effectiveness in promoting climate action is significantly undermined by transparency, efficiency, and scalability challenges. This paper evaluates the current structures of VCMs, technological advancements, and the regulatory landscape to assess whether the intrinsic characteristics of blockchain—such as immutability, transparency, and decentralisation—can effectively address these limitations. The Perspective posits that blockchain technology presents viable solutions by implementing automated validation mechanisms, enhancing market dynamics, and improving transparency. Nevertheless, the widespread adoption of blockchain is hindered by challenges related to market maturity, energy consumption, and regulatory compliance. Ultimately, embracing blockchain technology can significantly enhance the integrity and efficiency of VCMs, positioning them as vital instruments in the global effort to combat climate change.