The World Economic Forum, or WEF, believes that blockchain represents a core chemical element of sustainable digital finance — a new paradigm that combines emerging engineering science with environmentally conscious business models.

In a new written report published Wednesday, UBS executive Karin Oertli lists blockchain engineering science along with artificial intelligence, mobile platforms and the Net of Things every bit beingness the cornerstones of digital finance. These technologies, when combined with environmental, social and governance frameworks, could help governments and corporations reach their lofty sustainable development goals.

Oertli writes:

"Nosotros believe that sustainable digital finance will play an essential role in efficiently channeling this capital to fuel innovation, growth and job creation, at the same time supporting the transition to a sustainable, depression-carbon economy."

Oertli's comments are consequent with earlier research from the Organisation for Economic Cooperation and Development, which touted blockchain equally a "digital enabler for sustainable finance" and carbon reduction. The OECD said:

"The core backdrop of blockchain and other DLT tin enable deeper technological integration, standardisation, and the possibility of new concern models."

Although annual carbon dioxide emissions continue to grow on a global scale, Western nations appear to take lowered their carbon footprints relative to acme levels. Europe's CO2 emissions crested in the early on 1990s before declining over the side by side decade. The U.s.a. saw its superlative in 2007, correct before the global financial crisis.

Source: Ourworldindata.org

Blockchain's sustainable development narrative is a significant deviation from conventional criticism leveled at Bitcoin. As the first blockchain protocol, Bitcoin has taken its share of heat for its resources-draining proof-of-work consensus.

Attempts to assess Bitcoin'due south environmental impact vary, but a report from MIT Engineering Review final year suggests that miners may be pumping out as much CO2 per twelvemonth every bit Kansas City.

In 2018, a widely published study in Joule indicated that the Bitcoin network consumes the equivalent of a quarter of Australia'southward electricity.

Still, organizations similar the OECD feel blockchain engineering leverages key aspects of transparency, data auditability, process efficiency and automation that tin can "drive the systemic changes needed to deliver sustainable infrastructure."

Equally the WEF notes, some of the 1,200-plus "climate tech" startups to launch since 2013 have leveraged blockchain and other emerging technologies.

The WEF had not responded to a request for comment as of publication.