abstract
Residential energy consumption contributes over 20% of global CO₂ emissions, yet current carbon market mechanisms primarily focus on large-scale entities, often excluding small consumers due to complex monitoring and verification requirements. This research examines how blockchain technology can improve transparency, accessibility, and incentive structures in CO₂ markets, enabling broader consumers’ participation.
Using a comparative case study approach, this study analyzes six blockchain-based initiatives, evaluating their effectiveness in integrating small-scale users into emissions reduction frameworks. The findings are contextualized within relevant academic literature to assess best practices and key challenges. Results indicate that simplified implementation rules are essential for encouraging consumer involvement, allowing individuals to contribute to CO₂ reduction efforts without technical or financial barriers.
By leveraging blockchain’s decentralization, automated verification, and tokenized incentives, these systems enhance transparency, prevent double counting, and ensure verifiable emissions reductions. The research highlights how smart contracts, IoT-based monitoring, and decentralized governance models can optimize energy efficiency initiatives while maintaining compliance with regulatory frameworks. This study contributes to discussions on digital innovation in sustainability, presenting a scalable model that empowers consumers to actively participate in emissions trading and climate action.