USING BLOCKCHAIN TO SUPPORT THE ENERGYTRANSITION AND CLIMATEMARKETS

RESULTS AND LESSONS FROM A PILOT PROJECT IN CHILE

Countries can achieve a successful energy transition and participate effectively in the climate market by applying available knowledge, good practices, and lessons learned. This paper provides an example of
how blockchain technology contribute to these goals by linking energy and climate sectors, businesses, and customers. It assesses a pilot blockchain project undertaken in Chile to support distributed generation and carbon markets. Recommendations for scaling up innovative technologies to advance clean energy and climate change mitigation agendas are adduced.

A blockchain-based architecture can accommodate data that are
captured automatically to support an integrated network of energy and climate markets over time. Furthermore, as the pilot project in Chile shows, although initially complex, blockchain does not require a sophisticated information technology infrastructure. This key disruptive technology, if coupled with a well-designed governance structure and converged with other technologies, could facilitate the development of markets by supporting transactions of all types of energy and emission-related data (facility-level, projects, programs, quantified production, life-cycle attributes) in a
shared, globally accessible environment, at low cost.