Pioneering Emission Trading in Africa: An Architectural Design of a Blockchain-Powered Carbon Trading System

To achieve carbon neutrality by 2050 and reduce greenhouse gas (GHG) emissions to a range of 350–420 megatons of carbon dioxide equivalent, South Africa, the largest emitter of GHG in Africa, introduced a carbon taxation system in June 2019. However, within just 3 years, it has become evident that the system faces significant challenges, with less than 6% of the estimated tax returns reaching the government. This issue raises concerns about potential corruption and manipulation within the system. To address these challenges, this study presents a comprehensive framework for a carbon trading and taxation system leveraging blockchain technology (BCT). Designing this framework from the government’s perspective ensures efficient monitoring and oversight. Notably, the proposed system operates automatically, eliminating the need for third-party intermediaries. This study also identifies a crucial research gap and lays the foundation for future studies. It empirically implements the system as a decentralised application) using the Hedera and Solana blockchain networks. Complemented by JavaScript for the user interface. Python, through Django, was used to handle the server-side system implementation. Thus, this research aims to address the shortcomings of Africa’s current carbon taxation system through a novel, government-centric approach powered by BCT. The proposed system’s potential to enhance transparency and efficiency justifies further exploration in future studies.