Blockchain for sustainability
Blockchain technology has the potential to revolutionize sustainability efforts across various industries. By providing a transparent, decentralized, and immutable ledger, blockchain can enhance supply chain traceability, ensure fair trade practices, and drive more sustainable business practices. Latin America shows great potential in planning and developing blockchain solutions for multiple use cases.
For instance, in the fashion industry, blockchain can enable consumers to track the entire lifecycle of a garment, from raw materials sourcing to production processes, thereby promoting ethical and sustainable fashion choices. In the energy sector, blockchain can facilitate peer-to-peer energy trading, enabling individuals and communities to generate, consume, and sell renewable energy, fostering a decentralized and sustainable energy system.
There are currently a few projects in development in Latin America, for example, FAO, through the +Cotton Project, is already implementing the UNECE-UN/CEFACT standard and methodology in Latin America, working with Costach Cooperative, which groups more than 5,200 farming families and is providing 10 tonnes of sustainable cotton production for a blockchain pilot, to increase traceability and transparency of the fiber production processes, woven yarn and garment manufacturing, with an end objective to trace the cotton fibre from field to shelf
In addition, Nestlé will use blockchain to increase traceability for milk sourced in New Zealand before expanding the technology to Latin America for palm oil, whereas Cabify is reinforcing its environmental commitment by applying blockchain technology to the emissions offset project and expanding its initiatives to new countries. The company is already working on the integration of the API (Application Programming Interface) developed by Climate Trade, with which the carbon footprint per trip of users and companies who travel with the application can be tracked. This allows users to see in real time the footprint that is created during their trip, and Cabify compensates for this and transparently promotes the acquisition of carbon-neutral services.
New reports shed light on the potential blockchain holds for climate mitigation solutions and illustrate a road map to accelerate the clean energy, low-carbon transition, and climate change mitigation through blockchain technology, providing a framework for linking climate financing with climate accounting.
Overall, blockchain holds immense promise in promoting transparency, trust, and accountability, which are vital for building a more sustainable future, especially in emerging countries in Latin America.