Blockchain and IoT for Secure Carbon Credit Transactions
Samridhi Gulati, Amit Arora, Sarita Singh, Pawan Kumar Goel · 2025
The carbon credit market is among the significant factors in addressing climate change because it enables organizations to balance out their carbon footprint. The conventional carbon credit schemes, however, are plagued by inefficiencies, obscurity, forgery risk, and excessive verification costs. This research delves into the use of blockchain and the Internet of Things (IoT) to improve the security, efficiency, and transparency of carbon credit transactions. This chapter focuses on the issues with existing carbon credit markets and proposes a new system based on smart contracts, which automatically validates and authenticates transactions. The proposed system increases trust by eliminating middlemen and simplifying the process of carbon credit issuance through automation. The chapter also considers real-world uses, such as case studies on IBM Energy Blockchain Lab, and Everledger, to showcase how powerful blockchain and IoT can be in assisting with sustainability.