Climate change poses a significant
threat to human well-being, the
planet's
sustainability, and the global economy, mainly caused by excessive
greenhouse gas emissions, particularly CO2. To combat this phenomenon, various tools have been adopted, with the most effective being the
carbon emission trading scheme established by the United Nations which created a
system that monetizes and reduces CO2 emissions. However, the current
system faces multiple challenges, such as manipulation, complexity, and a lack of integrity, preventing it from achieving its ultimate objectives. To tackle these issues,
blockchain technology has been proposed due to its distinguishing characteristics of security,
traceability, decentralization, and trust. However,
blockchain frameworks existing in the literature have been inefficient and inadequate. This research aims to design and develop a practical
blockchain system that employs smart contracts and
Internet of Things (IoTs) with the use of oracles to solve the problems facing the present
carbon emission trading scheme and elevate its operations. The developed smart contracts automate the participating entities' registration and suspension processes and emitters released CO2 measurements as well as
carbon credit assignment and trading operations. Our smart contracts were simulated, tested and analyzed where results proved the efficiency, integrity,
traceability and security of all processes under the carbon trading market at a reduced cost.