EcoConstruct: a blockchain-based system for carbon trading in construction projects

Purpose: The construction industry, contributing approximately 39% of global carbon emissions, faces challenges to reach net-zero emissions by 2050. Traditional methods for estimating and managing carbon emissions suffer from inaccuracies, low transparency and data integrity issues, highlighting the need for trustworthy and efficient solutions. This paper aims to demonstrate how blockchains can enhance the accuracy of tracking carbon emissions and streamlining carbon trading, providing a robust system to manage and reduce carbon emissions effectively.

Design/methodology/approach: A case study-based approach is adopted to develop a blockchain-based system (EcoConstruct) to track carbon emissions and circularity of construction materials and facilitate carbon trading in the industry. The implementation uses smart contract technology and the Beneficial Assets Ownership protocol in the Tezos blockchain to validate carbon emission tracking, carbon trading and circularity criteria. The system was evaluated and validated through expert feedback, ensuring its practical applicability and effectiveness.

Findings: EcoConstruct demonstrates advancements in transparency, data integrity and efficiency in carbon estimation and trading. The system’s immutable ledger securely stores carbon emissions and their compensations using non-fungible tokens called carbon rewards. This system facilitates transparent and accountable carbon trading among stakeholders (clients, contractors and material suppliers). The findings highlight the potential of blockchains to overcome current challenges in carbon emissions management and trading in the construction industry.

Originality/value: EcoConstruct provides a novel blockchain-based solution for managing carbon emissions and promoting sustainability in construction, moving beyond conceptualisation by leveraging blockchain’s decentralisation, immutability, transparency and security to enhance carbon estimation accuracy and streamline carbon trading.