In recent years, Blockchain Technology has established itself as one of the most important innovations in the digital world. Originally developed for the cryptocurrency Bitcoin, it has now found use cases beyond the financial world. One of these use cases relates to creating transparency in supply chains and promoting environmental and social standards. In this blog post, we will therefore take a closer look at the potential impact of Blockchain Technology on sustainable business.

Grid usage fees and documenting the production path from energy producer to consumer

Today, issues of sustainability and climate protection are inextricably linked to the topic of energy production. For this reason, it is first important to discuss what added value Blockchain can achieve in this market segment. In traditional energy supply systems, energy is generated centrally by large power plants and distributed to consumers via the power grid. With the increasing penetration of renewable energy, such as solar and wind power, many consumers have started to generate their own energy. This leads to a decentralization of energy production.

Blockchain Technology can be used in this case to support this decentralized energy production and enable energy exchange between consumers (so-called prosumers, who both produce and consume). This is done by building peer-to-peer trading platforms where participants can sell excess energy directly to other consumers without the need for a central utility as an intermediary. Blockchain Technology allows transactions to be recorded securely, transparently and in real time. The decentralized nature of the technology allows energy generation and consumption to be tracked and accounted for in ways that traditional centralized utilities may not be able to achieve. 

In addition, another targeted response can be found in grid usage fees. These are charges levied on energy consumers for the use of electricity and gas networks. They are used to maintain and expand the networks and are usually calculated on the basis of estimated consumption volumes, which can lead to inaccuracies. By using Blockchain Technology, network operators can track consumption volumes in real time and thus charge more accurate network usage fees. Blockchain Technology also enables documentation of the production path from energy producer to consumer. This means that every step in the supply chain can be traced, and consumers and grid operators can be sure that the electricity comes from renewable sources, helping to reduce CO2 emissions.

Potential impact of Blockchain Technology on sustainability

However, Blockchain can help promote sustainability in many different ways. For one, it can help increase transparency in the supply chain and ensure that products and services are produced in an environmentally and socially responsible manner. In addition, another advantage of Blockchain Technology is the possibility of decentralization. In this context, the blockchain enables data to be stored on many different computers and thus protected from manipulation. This then results in the control of the supply chain not being in the hands of a few companies, but being distributed among many different actors.

In addition, Blockchain Technology helps to improve the efficiency of supply chains. For example, supply chains can be automated and accelerated through the use of Smart Contracts, which saves time and costs. In addition, these Smart Contracts can ensure compliance with certain environmental and social standards by making proof of defined conditions a prerequisite for the fulfillment of a contract.

Finally, Blockchain Technology can also help improve emissions trading. Emission allowances that limit greenhouse gas emissions can be traded on the blockchain platform, leading to greater transparency and efficiency. In this context, Blockchain Technology also enables real-time monitoring of emissions reductions, which can help improve monitoring and oversight of emissions trading programs.

We would like to explain further benefits of using blockchain in the field of environmental and climate protection. Just get in touch with us!

About the author

Mathias Herrmann


Mathias Herrmann is an internet entrepreneur going back to the Internet’s early days with a deep interest in digital and future technologies. For over 20 years, he has been helping companies make the most of their data by forging innovative solutions – without forgetting the people behind the data.

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