AI and Public Decentralized Networks for Voluntary Carbon Trading

Abstract

This paper explores the use of artificial intelligence (AI) and public decentralized networks “for social good,” investigating their use in carbon trading. Carbon trading provides an important capability in support of the Kyoto Protocol, sponsored by the United Nations’ efforts on climate change. We differentiate between voluntary and mandatory carbon markets. Unfortunately, there can be fraudulent trades in either type of market, such as reusing carbon credits multiple times, overstating the amount of a carbon credit, and falsely verifying carbon credits. We dis-cuss the use of public decentralized networks and AI as approaches to facilitate carbon trading, focused primarily on voluntary markets. Our AI analysis includes the use of large language models, sentiment analysis and GOFAI as we review recent potential approaches and developments in voluntary carbon trading.