Accounting giant KPMG’s US blockchain lead, Arun Ghosh, predicts that blockchain, combined with the Internet of Things (IoT) will be used to manage climate change in 2020.
IoT is a term for systems of interrelated devices that are embedded with sensors, software and network connectivity that enables them to collect and exchange data. According to a list of 6 blockchain predictions KPMG shared with Cointelegraph, Ghosh noted:
“The convergence of these technologies is enabling organizations to accelerate environmental governance, with blockchain’s chain of custody being deployed as a central component to driving sustainability.”
Data shows climate change, but blockchain needed for climate management
With KPMG’s presence in 154 countries, Ghosh explained that the firm is seeing an uptick in emerging economies focused on automating air quality control mechanisms. Ghosh noted that KPMG firms in India, Ukraine and China have had ongoing conversations with key players about what future air quality standards may resemble.
While Ghosh refused to go into detail of these discussions with KPMG, a recent report from Grand View Research, Inc., the air quality market size is expected to reach $6.5 billion by 2025. The report also notes the use of wireless communication networks for IoT-based air quality monitoring systems is likely to be the future.
Ghosh pointed out that as more data from IoT-based devices is collected around air quality, there is growing evidence behind carbon offset, which is a reduction in emissions of carbon dioxide or other greenhouse gases.
While this may be, Ghosh explained that accounting standards powered by blockchain-based protocols are being applied to enable climate management to ensure carbon offset.
IoT-enabled devices provide regions with solutions to limit emissions. A network of stationary sensors can provide a source of historical data about air or water pollution. Point source monitoring of water resources demonstrates where IoT sensors can be installed in particular locations to monitor sewage outfalls or storm drains over time.
Ghosh notes that blockchain platforms offering smart contracts will soon control IoT networks to ensure that operations run smoothly. In addition, blockchain-based storage platforms can be used to securely store data recorded by IoT devices. Ghosh told Cointelegraph:
“There is a lot of momentum around accounting standards of carbon monoxide that requires trusted data coming from IoT enabled devices. We are hearing more conversations around data and carbon offset programs and how we can merge these programs into developing better accounting standards through blockchain and IoT devices.”
Blockchain for climate management discussed at Davos 2020
Ghosh also noted that blockchain’s application in climate management will be discussed in Switzerland this month during the World Economic Forum, also known as Davos 2020.
The World Economic Forum has been funding certified offsetting projects around the world since 2017. This year, the World Economic Forum has noted that blockchain will have an opportunity to create social impact. According to a blog post from the World Economic Forum, an increase in hybrid blockchain models will be discussed at the event:
“This year, we expect to see increased experimentation with hybrid blockchain models, both in the financial sector (for example, decentralized finance or DeFi and “synthetic” CBDCs) and the public sector (increased use of smart contracts). These are a great way to increase comfort with the technology.”
This in mind, Ghosh noted that conversations with KPMG partners had indicated that blockchain and IoT in climate management will be discussed at Davos this month. He said:
“I hope to see these conversations happening at Davos this year. We’ve had many conversations with institutions and KPMG partners indicating there will be signs of how blockchain will enable effective climate management.”