How Blockchain-Based Carbon Accounting Is Transforming Climate Action in 2025: A Deep Dive into Market Growth, Technology, and the Road Ahead

Executive Summary: Blockchain’s Role in Carbon Accounting
Market Size and 2025–2030 Growth Forecasts
Key Blockchain Technologies Powering Carbon Tracking
Major Industry Players and Ecosystem Overview
Regulatory Drivers and Global Policy Landscape
Integration with Carbon Markets and Offsetting Platforms
Case Studies: Real-World Deployments and Impact
Challenges: Scalability, Interoperability, and Data Integrity
Future Outlook: Innovations and Emerging Use Cases
Conclusion: Strategic Recommendations for Stakeholders
Sources & References

Executive Summary: Blockchain’s Role in Carbon Accounting

Blockchain technology is rapidly emerging as a transformative force in carbon accounting, offering unprecedented transparency, traceability, and trust in emissions data. As of 2025, the global push for decarbonization and regulatory compliance is accelerating the adoption of blockchain-based solutions to track, verify, and report greenhouse gas (GHG) emissions across complex supply chains. Traditional carbon accounting methods often suffer from fragmented data, manual processes, and limited auditability, leading to inefficiencies and potential inaccuracies. Blockchain’s decentralized and immutable ledger addresses these challenges by enabling real-time, tamper-proof recording of carbon data, facilitating more reliable and standardized reporting.

Several leading organizations are spearheading the integration of blockchain into carbon accounting. IBM has developed blockchain-enabled platforms that automate the collection and verification of emissions data, allowing companies to seamlessly share carbon footprints with stakeholders and regulators. Shell is piloting blockchain-based systems to track carbon credits and ensure the integrity of offset projects, while Siemens is leveraging blockchain to enhance transparency in industrial decarbonization initiatives. These efforts are complemented by industry consortia such as the IOTA Foundation, which collaborates with enterprises to create open-source protocols for digital carbon tracking.

The momentum is further driven by evolving regulatory frameworks. The European Union’s Corporate Sustainability Reporting Directive (CSRD), effective from 2024, and similar mandates in North America and Asia, are compelling companies to adopt robust, auditable carbon accounting systems. Blockchain’s ability to provide a single source of truth for emissions data is increasingly recognized as a critical enabler for compliance and investor confidence.

Looking ahead, the next few years are expected to witness significant scaling of blockchain-based carbon accounting platforms. Interoperability between different blockchains and legacy systems is a key focus, with initiatives underway to standardize data formats and verification protocols. The integration of Internet of Things (IoT) sensors and artificial intelligence is anticipated to further automate data capture and validation, reducing human error and operational costs. As more organizations commit to net-zero targets, blockchain’s role in ensuring the credibility and efficiency of carbon accounting will become even more central, positioning it as a foundational technology in the global transition to a low-carbon economy.

Market Size and 2025–2030 Growth Forecasts

The market for blockchain-based carbon accounting is poised for significant expansion between 2025 and 2030, driven by increasing regulatory pressure, corporate sustainability commitments, and the need for transparent, tamper-proof emissions data. As of 2025, the sector is transitioning from pilot projects to broader commercial adoption, with several key players and consortia establishing foundational infrastructure for digital measurement, reporting, and verification (dMRV) of carbon emissions.

Major energy and technology companies are actively developing and deploying blockchain solutions for carbon tracking. Shell has invested in blockchain-based platforms to enhance the traceability of carbon credits and support its net-zero ambitions. Similarly, IBM has launched blockchain-enabled environmental solutions, including the IBM Environmental Intelligence Suite, which integrates blockchain for emissions data integrity. Microsoft is also leveraging blockchain in its cloud-based sustainability tools, aiming to provide auditable carbon accounting for enterprise clients.

Industry consortia and alliances are accelerating standardization and interoperability. The Energy Web Foundation is a prominent non-profit developing open-source blockchain platforms for energy sector decarbonization, with a focus on verifiable renewable energy certificates and carbon tracking. The IOTA Foundation is collaborating with industrial partners to pilot distributed ledger solutions for supply chain emissions accounting, emphasizing scalability and low transaction costs.

By 2025, the market is expected to be worth several hundred million USD, with projections indicating a compound annual growth rate (CAGR) exceeding 40% through 2030 as adoption accelerates across sectors such as energy, manufacturing, and logistics. Growth is underpinned by the increasing integration of blockchain with IoT sensors and AI for real-time, automated emissions data collection and validation. The European Union’s Corporate Sustainability Reporting Directive (CSRD) and similar regulations in North America and Asia-Pacific are anticipated to further drive demand for robust, auditable carbon accounting systems.

Key growth regions include Europe, North America, and parts of Asia-Pacific, where regulatory frameworks and voluntary carbon markets are most mature.
Emerging use cases include tokenized carbon credits, automated offset verification, and cross-border emissions tracking.
Challenges remain around interoperability, data privacy, and the environmental footprint of blockchain networks, but ongoing innovation—such as the adoption of energy-efficient consensus mechanisms—aims to address these concerns.

Looking ahead, the blockchain-based carbon accounting market is expected to become a critical enabler of global decarbonization efforts, providing the transparency and trust required for credible climate action and sustainable finance.

Key Blockchain Technologies Powering Carbon Tracking

Blockchain-based carbon accounting is rapidly evolving as a foundational technology for transparent, verifiable, and tamper-resistant tracking of greenhouse gas (GHG) emissions and carbon credits. In 2025, several key blockchain technologies and platforms are powering this transformation, with a focus on interoperability, scalability, and integration with real-world data sources.

One of the most prominent blockchain protocols in this space is Polygon Technology, which offers a scalable and energy-efficient infrastructure for decentralized applications. Polygon’s network is being leveraged by multiple carbon accounting projects to tokenize carbon credits and ensure traceability throughout their lifecycle. For example, the Polygon blockchain underpins the operations of KlimaDAO, a decentralized autonomous organization that facilitates the creation, trading, and retirement of tokenized carbon credits.

Another significant player is Hedera, whose public distributed ledger is designed for high throughput and low energy consumption. Hedera’s consensus service is being used by organizations such as DOVU and the International Emissions Trading Association (IETA) to record carbon offset transactions and provide auditable, real-time emissions data. The platform’s governance model, which includes major global enterprises, adds credibility and stability to its carbon tracking initiatives.

The Energy Web Foundation is also at the forefront, offering the Energy Web Chain—a blockchain purpose-built for the energy sector. This chain supports the issuance and tracking of renewable energy certificates and carbon credits, enabling utilities and corporates to demonstrate compliance with sustainability targets. Energy Web’s ecosystem includes partnerships with utilities, grid operators, and technology providers, facilitating integration with existing energy infrastructure.

Interoperability is a growing focus, with projects like Hyperledger (an open-source collaborative effort hosted by the Linux Foundation) enabling private and permissioned blockchain solutions for enterprise carbon accounting. Hyperledger Fabric and Hyperledger Besu are being adopted by consortia of corporates and regulators to securely share emissions data while maintaining confidentiality.

Looking ahead, the next few years are expected to see increased adoption of blockchain-based carbon accounting as regulatory requirements tighten and demand for verifiable ESG data grows. Integration with IoT sensors and satellite data is anticipated to further enhance the accuracy and automation of emissions tracking. As standards for digital carbon assets mature, blockchain platforms are likely to become the backbone of global carbon markets, supporting both compliance and voluntary offset initiatives.

Major Industry Players and Ecosystem Overview

The blockchain-based carbon accounting sector is rapidly evolving, with a growing ecosystem of technology providers, standards organizations, and industry consortia shaping the landscape in 2025. This ecosystem is characterized by collaboration between established technology firms, innovative startups, and major industry stakeholders seeking to enhance transparency, traceability, and trust in carbon emissions data.

Among the most prominent players is IBM, which has leveraged its enterprise blockchain platform to support carbon tracking and offset verification for multinational corporations and supply chains. IBM’s blockchain solutions are integrated with Internet of Things (IoT) sensors and AI analytics, enabling real-time emissions monitoring and automated reporting. Another key player, Shell, has invested in blockchain-based platforms to track carbon credits and facilitate peer-to-peer trading of verified offsets, aiming to streamline the decarbonization of its global operations.

Startups are also driving innovation. KlimaDAO operates a decentralized autonomous organization that tokenizes carbon credits on public blockchains, making them accessible and tradable for both individuals and organizations. Similarly, Toucan has developed infrastructure to bridge traditional carbon credits onto blockchain networks, increasing liquidity and transparency in voluntary carbon markets. These platforms have collectively tokenized millions of carbon credits, with on-chain data and smart contracts ensuring provenance and reducing double-counting risks.

Industry consortia and standards bodies play a crucial role in harmonizing approaches. The IOTA Foundation collaborates with governments and enterprises to develop open-source protocols for digital measurement, reporting, and verification (dMRV) of carbon emissions. Their focus on interoperability and data integrity is helping to set technical standards for the sector. Meanwhile, the World Wide Web Consortium (W3C) is working on decentralized identifiers and verifiable credentials, which underpin trust in digital carbon accounting systems.

Looking ahead, the sector is expected to see increased integration with regulatory frameworks, as governments and industry groups push for standardized, auditable carbon data. The European Union’s push for digital product passports and the expansion of emissions trading systems are likely to accelerate adoption of blockchain-based solutions. As interoperability and scalability improve, the ecosystem will likely consolidate around a handful of robust platforms, with continued participation from both established technology leaders and agile startups.

Regulatory Drivers and Global Policy Landscape

The regulatory landscape for carbon accounting is rapidly evolving, with increasing emphasis on transparency, traceability, and verifiability of emissions data. As of 2025, global policy initiatives and regulatory frameworks are driving the adoption of advanced digital solutions, including blockchain, to address persistent challenges in carbon accounting such as double counting, data manipulation, and lack of interoperability.

The European Union’s Corporate Sustainability Reporting Directive (CSRD), which came into effect in 2024, mandates comprehensive sustainability disclosures from over 50,000 companies, including detailed carbon emissions data. This regulatory push is accelerating the need for robust, auditable, and tamper-proof data systems. Blockchain’s immutable ledger and decentralized architecture are increasingly recognized as tools to meet these requirements, enabling real-time verification and secure sharing of emissions data across value chains.

In parallel, the International Sustainability Standards Board (ISSB), established by the IFRS Foundation, is rolling out global baseline standards for climate-related disclosures. These standards are expected to be widely adopted by jurisdictions in 2025 and beyond, further harmonizing reporting requirements and incentivizing the use of interoperable digital infrastructure. Blockchain-based platforms are being piloted and deployed to facilitate compliance, automate reporting, and enhance trust among stakeholders.

Several industry consortia and technology providers are at the forefront of this transition. IBM has developed blockchain-enabled solutions for carbon tracking, collaborating with partners in the energy and supply chain sectors to create transparent, auditable records of emissions and offsets. Shell is piloting blockchain-based registries for carbon credits, aiming to improve the integrity and traceability of voluntary carbon markets. Meanwhile, Energy Web, a global nonprofit, is working with utilities and grid operators to implement blockchain for granular, real-time tracking of renewable energy certificates and carbon intensity data.

Looking ahead, regulatory momentum is expected to intensify. The United States Securities and Exchange Commission (SEC) is finalizing rules that will require public companies to disclose Scope 1, 2, and in some cases Scope 3 emissions, likely spurring further investment in blockchain-based carbon accounting tools. In Asia, countries such as Singapore and Japan are exploring regulatory sandboxes and pilot programs to test blockchain’s role in emissions reporting and carbon market infrastructure.

By 2025 and into the latter part of the decade, the convergence of regulatory requirements and technological innovation is poised to make blockchain a foundational element in global carbon accounting, supporting credible climate action and enabling new forms of cross-border collaboration.

Integration with Carbon Markets and Offsetting Platforms

The integration of blockchain-based carbon accounting with carbon markets and offsetting platforms is accelerating in 2025, driven by the need for greater transparency, traceability, and trust in environmental claims. Blockchain technology enables immutable recording of carbon emissions data and the lifecycle of carbon credits, addressing persistent issues of double counting and fraud that have historically undermined voluntary and compliance carbon markets.

Several major initiatives and platforms are at the forefront of this integration. Verra, one of the world’s leading standards for carbon credits, has begun piloting blockchain-based registries to enhance the traceability of its Verified Carbon Units (VCUs). By tokenizing carbon credits, Verra aims to facilitate seamless trading and retirement of credits across multiple platforms, while ensuring that each credit is unique and cannot be double-counted.

Similarly, Gold Standard is collaborating with technology partners to digitize its carbon credit issuance and tracking processes. The organization is exploring blockchain solutions to provide real-time visibility into project performance and credit status, which is expected to streamline the integration with both voluntary and compliance carbon markets.

On the technology provider side, IBM has developed blockchain-based solutions for carbon accounting and credit management, enabling enterprises to track emissions reductions and offset purchases with auditable, tamper-proof records. These solutions are being adopted by multinational corporations seeking to meet net-zero commitments and demonstrate compliance with emerging regulatory frameworks.

Decentralized platforms such as KlimaDAO and Toucan Protocol are also playing a significant role in 2025. These platforms tokenize carbon credits and facilitate their trading on public blockchains, increasing liquidity and accessibility for a broader range of participants. KlimaDAO, for example, has integrated with multiple carbon registries and exchanges, allowing users to retire credits transparently and verifiably on-chain.

Looking ahead, the outlook for blockchain-based carbon accounting in carbon markets is promising. Regulatory bodies and industry groups are increasingly recognizing the value of blockchain for ensuring the integrity of carbon credits. The International Emissions Trading Association (IETA) is actively engaging with technology providers to develop standards for digital carbon assets, which could pave the way for broader adoption and interoperability across markets.

By 2025 and beyond, the convergence of blockchain technology with carbon markets and offsetting platforms is expected to drive higher standards of transparency, reduce transaction costs, and foster greater trust among market participants. This integration is poised to support the scaling of global carbon markets, a critical component in achieving climate targets under the Paris Agreement.

Case Studies: Real-World Deployments and Impact

Blockchain-based carbon accounting has rapidly evolved from pilot projects to real-world deployments, with 2025 marking a pivotal year for scaling and impact. Several high-profile initiatives now demonstrate how distributed ledger technology (DLT) can enhance transparency, traceability, and trust in carbon markets and emissions reporting.

One of the most prominent examples is the IBM Environmental Intelligence Suite, which integrates blockchain to track carbon emissions across supply chains. By leveraging blockchain, IBM enables companies to record emissions data immutably, facilitating third-party verification and regulatory compliance. In 2024, IBM expanded its partnerships with major logistics and manufacturing firms, allowing for near real-time emissions tracking and automated reporting, which is expected to become a standard in 2025.

Another significant deployment is by Shell, which has piloted blockchain-based carbon credit platforms to support its net-zero ambitions. Shell’s Energy Web Foundation partnership uses blockchain to register, verify, and retire carbon credits, ensuring that credits are not double-counted or fraudulently claimed. In 2025, Shell is scaling this system to include more suppliers and customers, aiming to streamline Scope 3 emissions accounting and support voluntary carbon markets.

In the voluntary carbon market, Verra, a leading standards organization, has begun integrating blockchain for its Verified Carbon Standard (VCS) registry. This move allows for transparent tracking of credit issuance, transfer, and retirement, reducing administrative overhead and increasing market confidence. Verra’s blockchain integration is expected to set a precedent for other registries in the coming years.

On the technology provider side, Energy Web has developed open-source blockchain solutions for carbon accounting, focusing on the energy sector. Their platforms enable utilities and corporates to track renewable energy generation and associated carbon reductions, with several European utilities adopting the system in 2024–2025 to meet new regulatory requirements.

Looking ahead, the outlook for blockchain-based carbon accounting is robust. Regulatory drivers, such as the EU’s Corporate Sustainability Reporting Directive (CSRD), are pushing for more granular and auditable emissions data, which blockchain is well-positioned to deliver. As interoperability standards mature and more organizations join consortia, blockchain’s role in carbon accounting is expected to expand, supporting both compliance and voluntary climate action at scale.

Challenges: Scalability, Interoperability, and Data Integrity

Blockchain-based carbon accounting has gained significant traction as organizations and governments seek transparent, tamper-resistant systems for tracking greenhouse gas emissions and carbon credits. However, as adoption accelerates into 2025, the sector faces persistent challenges around scalability, interoperability, and data integrity that could limit its transformative potential.

Scalability remains a primary concern. Public blockchains, such as those used by early carbon credit platforms, often struggle with transaction throughput and high energy consumption. As the number of carbon accounting transactions grows—driven by regulatory requirements and voluntary markets—networks risk congestion and increased costs. For example, IBM has piloted blockchain-based carbon tracking solutions for supply chains, but even these enterprise-grade systems must address the challenge of processing millions of emissions data points in near real-time. Emerging layer-2 solutions and permissioned blockchains are being explored to improve scalability, but widespread, seamless scaling is not yet realized.

Interoperability is another critical hurdle. The carbon accounting ecosystem is fragmented, with multiple standards, registries, and blockchain protocols in use. This fragmentation impedes the seamless exchange of carbon credits and emissions data across platforms. Organizations like Energy Web are working to develop open-source protocols and digital infrastructure to enable interoperability between different blockchains and legacy systems. However, the lack of universally accepted data schemas and APIs continues to slow progress. In 2025, industry consortia and standards bodies are intensifying efforts to harmonize data formats and certification processes, but a fully interoperable global system remains a work in progress.

Data integrity is foundational to the credibility of blockchain-based carbon accounting. While blockchains provide immutability, the accuracy of emissions data depends on the reliability of off-chain data sources and the integrity of data input processes. Projects like Verra and Gold Standard are integrating digital monitoring, reporting, and verification (MRV) tools to automate and standardize data collection. Nevertheless, risks of inaccurate or fraudulent data entry persist, especially in regions with limited digital infrastructure or regulatory oversight. The sector is increasingly turning to IoT sensors, satellite imagery, and AI-driven verification to enhance data quality, but these technologies are not yet universally deployed or trusted.

Looking ahead, overcoming these challenges will require coordinated action among technology providers, standards organizations, and regulators. The next few years are likely to see increased investment in scalable blockchain architectures, the emergence of interoperability frameworks, and the adoption of advanced digital MRV tools. Success in these areas will be crucial for blockchain-based carbon accounting to deliver on its promise of trustworthy, efficient, and global emissions tracking.

Future Outlook: Innovations and Emerging Use Cases

Blockchain-based carbon accounting is poised for significant evolution in 2025 and the coming years, driven by the urgent need for transparent, verifiable, and interoperable climate data. As regulatory frameworks tighten and corporate sustainability commitments intensify, blockchain’s ability to provide immutable records and real-time traceability is increasingly recognized as a critical enabler for credible carbon accounting and trading.

Several major initiatives are shaping the landscape. IBM continues to expand its blockchain-enabled environmental solutions, including its Environmental Intelligence Suite, which integrates blockchain for tracking carbon emissions and offsets across supply chains. Shell is piloting blockchain platforms to certify the provenance of carbon credits and renewable energy certificates, aiming to reduce double counting and fraud. Meanwhile, Energy Web Foundation is collaborating with utilities and grid operators to tokenize renewable energy and carbon data, enabling automated, auditable reporting for both compliance and voluntary markets.

A key innovation is the emergence of interoperable standards for digital carbon assets. The IOTA Foundation is working with industry partners to develop open protocols for carbon data exchange, facilitating seamless integration between registries, corporate reporting systems, and trading platforms. This is expected to accelerate the adoption of blockchain-based carbon accounting by reducing fragmentation and increasing trust in digital carbon markets.

On the use case front, blockchain is being deployed to support granular, product-level carbon tracking. For example, IBM and Shell are exploring blockchain solutions that allow companies to trace the carbon footprint of individual products from raw material extraction to end-of-life, supporting both regulatory compliance and consumer transparency. In the voluntary carbon market, platforms like Energy Web Foundation are enabling peer-to-peer trading of tokenized carbon credits, opening new avenues for decentralized climate action.

Looking ahead, the convergence of blockchain with emerging technologies such as AI and IoT is expected to further enhance the accuracy and automation of carbon accounting. Real-time emissions data from IoT sensors can be immutably recorded on blockchain networks, while AI algorithms can analyze and verify this data at scale. As these innovations mature, blockchain-based carbon accounting is likely to become a foundational layer for global climate action, supporting transparent, trustworthy, and efficient carbon markets.

Conclusion: Strategic Recommendations for Stakeholders

As blockchain-based carbon accounting matures in 2025, stakeholders across the value chain—corporates, regulators, technology providers, and standard-setting bodies—face both opportunities and challenges. The following strategic recommendations are designed to help these groups maximize the benefits of blockchain while mitigating risks and ensuring alignment with evolving global standards.

Prioritize Interoperability and Open Standards: Stakeholders should advocate for and adopt interoperable blockchain solutions that align with emerging global standards for carbon accounting. This will facilitate seamless data exchange and verification across platforms, reducing fragmentation. Organizations such as IBM and Shell are already collaborating on open-source blockchain initiatives for carbon tracking, setting a precedent for industry-wide cooperation.
Engage with Regulatory Developments: With regulatory frameworks for digital carbon markets and reporting evolving rapidly, companies must proactively engage with policymakers and standard-setters. Participation in initiatives led by bodies like the World Economic Forum and the IOTA Foundation can help shape practical, future-proof regulations and ensure compliance as new rules emerge.
Invest in Data Quality and Verification: Blockchain’s value in carbon accounting depends on the integrity of input data. Stakeholders should invest in robust data collection, third-party verification, and integration with IoT and satellite monitoring. Companies such as Verra and Gold Standard are increasingly integrating blockchain to enhance transparency and trust in carbon credit issuance and tracking.
Foster Ecosystem Collaboration: The effectiveness of blockchain-based carbon accounting increases with network effects. Corporates, technology providers, and NGOs should form consortia and public-private partnerships to accelerate adoption, share best practices, and pool resources for infrastructure development. The Energy Web Foundation exemplifies this approach, bringing together utilities, grid operators, and technology firms to standardize digital carbon tracking.
Prepare for Market Integration: As tokenized carbon credits and digital MRV (Measurement, Reporting, Verification) systems gain traction, stakeholders should prepare for integration with voluntary and compliance carbon markets. Early adoption and pilot projects—such as those by Shell and IBM—can provide valuable experience and position organizations for leadership as digital carbon markets scale.

In summary, blockchain-based carbon accounting is poised to become a foundational element of climate action strategies. By prioritizing interoperability, regulatory engagement, data integrity, collaboration, and market readiness, stakeholders can unlock the full potential of blockchain to drive transparency, efficiency, and trust in global carbon markets over the coming years.