Blockchain-Based Carbon Credit Tokenization Model: Enhancing Market Transparency and Trust

The carbon market plays a crucial role in mitigating climate change by enabling the trading of carbon credits. However, traditional carbon trading systems face significant challenges such as inefficiencies, data manipulation, and lack of transparency, which undermine trust and reduce broader participation. his research aims to develop a blockchainbased framework that leverages multiple smart contracts to automate key processes, such as carbon credit issuance, fund management, compliance verification, and quality-based pricing, addressing the inefficiencies, transparency issues, and data manipulation in carbon markets. Developed using qualitative methods, including expert interviews, the framework is designed to be adaptable to various regulatory environments, ensuring scalability and compliance. The findings demonstrate that blockchain technology, through smart contracts, has the potential to transform carbon markets by improving traceability and providing a more inclusive, transparent, and reliable system for carbon trading. This study aligns with SDG 13: Climate Action by tackling obstacles hindering climate initiatives and reinforcing international endeavors to meet carbon reduction goals.