Integrated Taxonomy of Blockchain-Based Carbon Credit Tokenization and Frontiers Exploration

Blockchain technology has emerged as a transformative solution for addressing transparency and efficiency challenges within carbon credit markets. This study aims to develop an integrated taxonomy for Blockchain-based carbon credit tokenization, which can serve as a comprehensive framework for understanding the key dimensions of this emerging field. A Systematic Literature Review (SLR) adhering to PRISMA 2020 guidelines was conducted, supplemented by expert interviews to refine the taxonomy. The taxonomy identifies four core dimensions for Blockchain infrastructure, the carbon asset lifecycle, governance structures, and regulatory frameworks. Key findings highlight critical trade-offs, such as the balance between token interoperability and liquidity requirements, as well as the challenge of maintaining transparency while ensuring privacy within permissioned Blockchains. The research also points to crucial research frontiers, including addressing interoperability constraints, developing novel governance models, and integrating real-time Measurement, Reporting, and Verification (MRV) systems in Regenerative Finance (ReFi). These areas are pivotal for the scalability and credibility of Blockchain-enabled carbon markets. The taxonomy developed in this study provides both academics and practitioners with an analytical tool to guide future research and facilitate the effective implementation of Blockchain technologies in sustainability efforts. This work also situates the findings within the broader discourse of Blockchain, sustainability, and digital innovation, contributing to the development of more effective carbon credit markets and fostering a sustainable future.