In a groundbreaking move to combat climate change, the American University of Sharjah (AUS) has introduced a pioneering blockchain system aimed at revolutionizing the carbon credits trading market. This innovative solution promises to address the inefficiencies that have long plagued existing platforms, offering enhanced transparency, immutability, and credibility. Led by Dr. Malick Ndiaye, the AUS research team has developed a system that automates key processes such as participant registration, credit generation, and carbon emission measurement. This breakthrough not only streamlines the trading process but also aligns with global efforts to reduce carbon emissions and promote environmental sustainability.

The Importance of Carbon Credits Trading

Carbon credits trading operates as a pivotal tool in the fight against climate change, employing a marketplace where entities can buy and sell credits permitting a designated amount of carbon dioxide emissions. These credits enable governments to enforce emission limits, incentivizing companies to reduce their carbon footprint and invest in cleaner technologies.

Addressing Inefficiencies with Blockchain Technology

The AUS research team’s blockchain system seeks to rectify the inefficiencies plaguing existing carbon credits trading (CCT) platforms. By automating crucial components such as participant registration, credit generation, tracking, and trading, as well as carbon emission measurement, the new system promises increased transparency, immutability, and credibility of operations and data records.

Key Features of the AUS Blockchain System

1. Automation of Processes: The system automates participant registration, credit generation, and carbon emission measurement, reducing manual errors and increasing efficiency.
2. Enhanced Transparency: Blockchain technology ensures that all transactions are transparent and can be audited by any participant in the network.
3. Immutability: Once data is recorded on the blockchain, it cannot be altered, ensuring the integrity of the carbon credits trading process.
4. Credibility: The system enhances the credibility of carbon credits by providing a verifiable and tamper-proof record of all transactions.

Insights from Dr. Malick Ndiaye

Dr. Malick Ndiaye, Professor in Industrial Engineering and lead researcher, emphasized the transformative potential of the innovation: “This breakthrough streamlines the carbon credit trading process, offering significant advantages such as cost reduction, processing time optimization, and mitigation of risks associated with double-spending and opacity, which are prevalent in current CCT systems. Moreover, it aligns seamlessly with the United Nations’ mission to combat climate change by empowering governments to leverage CCT effectively.”

Broader Societal Benefits

Dr. Ndiaye further highlighted the broader societal benefits of the technology: “Beyond environmental gains, the new system holds promise in curbing air pollution, fostering a healthier environment, and reducing the prevalence of respiratory illnesses associated with poor air quality. By driving down operational costs and processing time in carbon credit trading, it creates economic opportunities, stimulates investment in sustainable technologies, and fuels overall economic growth. Importantly, our technology ensures equitable access to carbon credit trading, thus promoting social justice and inclusion.”

Q&A Session with UNLOCK Blockchain

During a Q&A session with UNLOCK Blockchain, Dr. Ndiaye explained the inspiration behind developing the blockchain system. He said, “Climate change has always been of concern to us as researchers who believe in the impact of scientific approaches in improving people’s lives. While studying the available solutions, we found that carbon credits trading is the main practical sustainable tool adopted to combat climate change. However, it was not invested into its full potential due to implementation inefficiencies. With the advent of blockchain technology, we were inspired to utilize its distinctive features to serve a better cause by creating a blockchain-based management system for the carbon market.”

The Role of COP28

Responding to whether COP28 was a main incentive for AUS to work on such a project, Dr. Ndiaye clarified, “We started the work 2-3 years prior to COP28. We were fortunate to present some of the research findings during the event with the support of the Sharjah Entrepreneurship Center (Sheraa).”

Current Status and Future Plans

Regarding the current status and future plans for implementing the AUS blockchain system, Dr. Ndiaye elaborated, “We are currently working to prototype a real-time carbon measurement system here at AUS with a dashboard capability to analyze data and support the decision-making processes. Our aim is to commercialize the technology via a spinoff and are fully supported by AUS and Sheraa.”

Support from the Technology Transfer Office (TTO)

On the role of the Technology Transfer Office (TTO) at AUS in supporting the research team, Dr. Ndiaye explained, “The TTO is involved in the IP protection of the technology. In addition to this, the TTO is also assisting in putting all the building blocks necessary to set up a spinoff and to commercialize the technology.”

Blockchain in AUS’ Educational Program

Last but not least, regarding whether blockchain is part of AUS’ educational program, Dr. Ndiaye stated, “Blockchain is already part of some of our courses content here at the Industrial Engineering Department. Graduate students from the Engineering Systems Management continue working on blockchain-related topics as part of their research thesis. Nonetheless, I am not aware of a full-fledged program on blockchain at AUS.”

The Future of Blockchain in Academia

With this said, it fills the blockchain community with great satisfaction and optimism to witness the active involvement of universities in pioneering projects that hold the potential to revolutionize our world. The dedication of academic institutions, such as AUS, to exploring and advancing blockchain technology is not only commendable but also indicative of the profound impact this innovation can have on various aspects of our lives.

With such promising initiatives underway, there is a hopeful anticipation for the development of comprehensive programs and diplomas centered around blockchain technology, ensuring that future generations are equipped with the knowledge and skills necessary to harness its full potential for the betterment of society.

Conclusion

The unveiling of the blockchain system for carbon credits trading by the American University of Sharjah marks a significant milestone in the fight against climate change. By addressing the inefficiencies of existing platforms and offering enhanced transparency, immutability, and credibility, this innovative solution has the potential to revolutionize the carbon credits trading market. The dedication and efforts of the AUS research team, led by Dr. Malick Ndiaye, are commendable and indicative of the profound impact that blockchain technology can have on environmental sustainability and economic growth.

As the world continues to grapple with the challenges of climate change, the integration of blockchain technology into carbon credits trading offers a promising path forward. With the support of academic institutions, governments, and industry stakeholders, there is a hopeful anticipation for a future where blockchain technology plays a central role in promoting environmental sustainability and social justice.

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