Introduction

The report addresses the dual challenges of urbanisation and climate change, emphasising that cities, responsible for over 70% of global greenhouse gas emissions, are at the forefront of climate risks. With urban populations projected to reach 68% by 2050, cities require innovative solutions to mitigate emissions and build resilience. Blockchain technology, alongside IoT and AI, offers promising opportunities for decentralised and transparent systems to enhance sustainability and operational efficiency in urban areas.

Climate policy and innovation

Policymakers worldwide are leveraging blockchain to meet ambitious climate goals. In the US, the Inflation Reduction Act and Justice40 Initiative aim to channel investments into disadvantaged communities, fostering climate resilience. California’s climate policy demonstrates leadership, with targets to cut emissions by 40% below 1990 levels by 2030 and achieve carbon neutrality by 2045. Its cap-and-trade system has generated over $5 billion for projects like renewable energy adoption and urban emission reductions. Financial frameworks are crucial to incentivise climate innovation and adoption of technologies like blockchain.

Smart and sustainable cities

Smart cities employ advanced technologies to optimise resources, reduce energy consumption, and improve urban governance. The report highlights international examples, such as Singapore’s eco-smart projects, which integrate renewable energy, water management, and data systems to achieve environmental goals. However, these advancements face barriers like data security, privacy, and interoperability concerns. To align smart city initiatives with climate objectives, governments must prioritise regulatory clarity and invest in secure, scalable technologies.

Blockchain-enabled smart cities

Blockchain plays a critical role in realising smart city functions, offering decentralised systems for governance, energy distribution, and civic engagement. Peer-to-peer energy trading powered by blockchain, such as Germany’s decentralised energy grids, exemplifies cost-efficient and low-emission models. Blockchain-based solutions also optimise urban transport, including smart parking and dynamic congestion pricing, reducing traffic and pollution. These technologies enable data immutability, improving trust in urban decision-making processes.

Blockchain in climate action

The report underscores blockchain’s potential in enabling climate action through transparent, tamper-proof data management. Case studies include the Bassett Avocado Heights Advanced Energy Community in California, where blockchain provides low-income households with access to affordable renewable energy. Similarly, the Open Earth Foundation applies blockchain to global carbon accounting, ensuring compliance with emission reduction commitments. Blockchain is uniquely positioned to bridge operational gaps in renewable energy markets and improve accountability for sustainability initiatives.

Recommendations for city government leaders

For effective implementation of blockchain in urban governance, the report suggests fostering partnerships among public, private, and community stakeholders. Local governments should invest in capacity-building through education and training on blockchain’s applications and limitations. It also recommends deploying regulatory sandboxes to safely pilot blockchain projects and mitigate risks. The adoption of human-centred design ensures that blockchain solutions address the needs of diverse urban populations and promote equity.

Conclusion

The report concludes that blockchain technology offers transformative potential for addressing climate challenges in cities. By enhancing transparency, decentralisation, and operational efficiency, blockchain can support sustainable urban development. However, success depends on collaboration, ethical implementation, and robust regulatory frameworks. Proactive investment in blockchain technologies can pave the way for resilient, inclusive, and environmentally conscious cities.