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 <li>1 <a>Cargo ships reportedly produce 16 grams of carbon dioxide per kilometer.</a></li>
 <li>2 <a>Shipping is considered the backbone of global trade.</a></li>
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The global shipping industry is responsible for 3 percent of global carbon emissions. However, it can be mitigated via technologies like blockchain. Greenhouse gases (GHGs) are a leading cause of rising global temperatures. World Economic Forum (WEF), an international non-governmental organization for the public-private sector, highlighted in one of its videos how blockchain may help mitigate this issue.
<h2 class="wp-block-heading" id="strong-blockchain-may-cut-extra-trips-strong">Blockchain May Cut Extra Trips</h2>
The video features Cubex Global, a digital marketplace for ocean freight that buys and sells unused container space using blockchain technology. Additionally, it highlights that 790 Million containers are shipped annually. Many of them have spare space which could be used to avoid extra trips by a ship.
Cargo ships reportedly produce 16 grams of carbon dioxide per kilometer. One large container ship is estimated to produce GHGs equivalent to 50 Million diesel-burning cars. Additionally, emissions are directly released into oceans, affecting marine life. In 2015, shipping was responsible for 13 percent of carbon emissions springing out of the transportation sector.
Shipping is considered as the backbone of global trade. Food, medicines, technologies, and more can be easily exchanged among nations through water routes. Around 11 Billion goods are transferred annually via ships. Nearly 2 Billion tons of crude oil and 350 Million tons of grains are shipped which would not be possible by other means of transport.
Blockchain is primarily associated with <a href="https://www.thecoinrepublic.com/2023/11/15/explore-the-world-of-crypto-airdrops-and-their-many-benefits/" target="_blank" rel="noopener noreferrer nofollow">cryptocurrency</a>, a digital currency designed to be used as a means of exchange. It incorporates a process dubbed Proof-of-Work (PoW) that mines blocks of cryptocurrencies by solving complex mathematical problems. All of it requires energy-intensive mining rigs.
Available data shows Bitcoin (BTC), the largest cryptocurrency by market cap, is considered a major carbon emitter in the blockchain sector. A BTC transaction allegedly consumes power equivalent to 100K Visa transactions. A report estimated that the elimination of crypto mining from China could reduce emissions by 57 Million.
However, following China’s crackdown on cryptocurrencies in 2021 shifted the hash rate to the United States. Currently, the US is responsible for over 30 percent of global crypto mining. Although the crypto sector contributes to only a fraction of international carbon emissions, experts believe that it may become a significant contributor given the potential growth of the market.
Nearly 100 Million shipping containers are almost empty according to the WEF video. If used responsibly, blockchain may help cut the emissions at large, however, from the shipping industry only. The world is moving towards a deteriorating future attributing to climate change. Cutting GHGs from a sector is not likely to make a significant impact.
The world is nearing 1.5°C steadily. Experts have warned that temperatures near 3°C could lead to countries enduring at least a month-long drought annually.

Incorporating Blockchain to Mitigate Climate Risks From Shipping

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Thecoinrepublic.com

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