Building Block(chain)s for a Better Planet

The report explores how blockchain's decentralized and immutable ledger can transform environmental management through 'game changers' such as transparent supply chains, decentralized resource management, and new sustainable finance models. While identifying over 65 use-cases, it warns of significant 'blockers' including high energy consumption of Proof of Work protocols, scalability limits, and a lack of global regulatory harmonization. It advocates for a 'responsible blockchain' approach that combines distributed ledgers with other Fourth Industrial Revolution technologies like AI and IoT to move from shareholder to stakeholder value.

• Blockchain can enable 'see-through' supply chains by creating an immutable record of provenance, which allows for full traceability of products from source to store and helps companies meet commitments like zero deforestation.
• The technology could facilitate a transition to decentralized utility systems, allowing for peer-to-peer trading of energy and water, dynamic pricing, and better demand-supply balancing through the use of smart contracts and IoT sensors.
• Blockchain-enabled finance platforms can democratize access to capital for environmental projects through tokenization, potentially helping to close the estimated $5 to $7 trillion annual funding gap for Sustainable Development Goals.
• The report identifies a potential for 'crypto-conservation' and circular economy incentives, where individuals are rewarded with cryptographic tokens for sustainable actions such as collecting ocean plastic or preserving rainforests.
• Blockchain can optimize carbon and other environmental markets by increasing transaction visibility and reducing double counting, with applications ranging from micro-scale offsets on individual products to national credit management platforms.
• The technology can transform sustainability reporting and verification by enabling independent sourcing of performance data, which reduces reliance on self-reported corporate data and improves market efficiency.
• A significant technical barrier is the scalability of current public blockchains; for example, Bitcoin and Ethereum handle only 3 to 30 transactions per second, whereas a complete energy grid would require millions of transactions per second.
• The energy consumption of Proof of Work (PoW) protocols is a major risk; Bitcoin's energy use was estimated at 70 terawatt hours per year in July 2018, though newer Proof of Stake (PoS) and Proof of Authority (PoA) protocols are significantly more efficient.
• Widespread deployment is hindered by legal and regulatory challenges, including unclear jurisdictions for distributed ledgers and the contradiction between blockchain's immutability and the legal 'right to be forgotten'.

APA

World Economic Forum (2018). Building Block(chain)s for a Better Planet. http://www3.weforum.org/docs/WEF_Building-Blockchains.pdf

Chicago

World Economic Forum. Building Block(chain)s for a Better Planet. 2018. http://www3.weforum.org/docs/WEF_Building-Blockchains.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Building Block(chain)s for a Better Planet |date=September 2018 |url=http://www3.weforum.org/docs/WEF_Building-Blockchains.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2018building, author = {{World Economic Forum}}, title = {{Building Block(chain)s for a Better Planet}}, institution = {World Economic Forum}, year = {2018}, month = sep, url = {http://www3.weforum.org/docs/WEF_Building-Blockchains.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }