Research on the Architecture of a Blockchain-Based Carbon Emission Trading System

As global climate change intensifies, reducing greenhouse gas emissions and achieving carbon neutrality have become international priorities. In this context, carbon trading markets have emerged as a key mechanism to price emissions and incentivize reductions, promoting green development. For China, the world’s largest emitter, the development of its carbon market is not only critical for domestic environmental improvement but also for global climate governance. However, challenges such as incomplete market mechanisms, lack of regulatory independence, and low liquidity hinder its efficiency and broader participation. This paper conducts a comprehensive analysis of the current state and key challenges of China’s carbon market and proposes a blockchain-based solution to create a more transparent, secure, and efficient system. By utilizing blockchain’s features—such as decentralization, immutability, and enhanced security—the proposed system aims to streamline transactions, improve market liquidity, and foster trust among stakeholders. This approach not only addresses the immediate shortcomings of China’s carbon market but also positions it for sustainable long-term growth, aligning with global efforts to mitigate climate change and reduce carbon footprints.