China’s National Development and Reform Commission (NDRC) has greenlighted the nation’s plan to trial the blockchain for green power trading. The organisation, China’s highest planning body, disclosed this news by posting an interview on its website. Reportedly, this move is part of China’s goal to achieve carbon neutrality.
In the interview, an unnamed NDRC representative disclosed that the agency joined hands with the National Energy Administration, related firms, experts, and scholars and found that the conditions of creating a green power market are apt. The first condition is enterprise demand for green power. Per the representative, enterprises are ready to pay extra for the environmental benefits of green power.
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The second condition is the willingness of localities. With some regions having researched about green power, the representative noted that they are eager to embrace green power trading.
As for the technological aspect, the interviewee said the blockchain can comprehensively record information about green power production, transaction, and consumption, among other aspects. Leveraging the blockchain would also ensure all recorded information remain immutable.
NDRC’s representative further disclosed that the State Grid Corporation of China has already filed a patent application for a blockchain-based green certificate transaction system.
China’s growing appetite for blockchain technology
Apart from trialling the blockchain for green power trading, the State Grid Corporation of China is also looking to launch a blockchain-based data sharing and management platform after joining hands with Beijing-based Wanglu Tech. Reportedly, this platform will help State Grid use artificial intelligence (AI) to analyze data without endangering consumer privacy. In so doing, the entity believes it will be well-positioned to modernize its services and capabilities.
This news comes after the country released its first carbon offset on AntChain, Ant Group’s enterprise blockchain platform. Tianjin released China’s first blockchain-based carbon offset certificate in July 2021. Detailing why Tianjin leveraged the blockchain, the publication noted that the technology makes the issuance, trading, and auditing of carbon offsets transparent and traceable.
Before this, the country mentioned the blockchain for the first time in its 14th five-year plan in March, this year. While China banned cryptocurrencies, it believes their underlying technology can be instrumental in its digital economy. By leveraging the blockchain among other technologies, China believes it can increase its GDP and become a global leader.
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