The landscape of carbon credits in the battle against the climate crisis is on the brink of a digital transformation, as current models predict a tenfold increase in demand by 2030. Digital infrastructure plays a pivotal role in scaling up high-integrity, transparent carbon markets that can be harnessed by countries to enhance climate action and ambition. AI especially has emerged as a crucial tool to monitor, predict, and analyze carbon credits to ensure their alignment with commitments. This not only fortifies the reliability of data but also amplifies the inherent value of carbon credits through precision and accountability. AI technologies alongside data monitoring infrastructure can enable new tools and financial models through automated analytics and precision that allow buyers and sellers on the carbon market with access to more reliable and insightful data on carbon credits.
UNDP has developed an open-source software, the National Carbon Registry which supports countries to efficiently manage national data and processes for trading carbon credits. Accredited as a digital public good, the registry enables countries to replicate and adapt the information to suit their unique needs and contexts. A synthesis of digital infrastructure, AI, and inclusive financial models are poised to bring the carbon credit markets into the forefront as a tool to enable a just energy transition. The existing 6500 coal plants and the additional 941 currently in planning stages are set to emit an astounding 273 billion tons of CO2 over their 40-year lifespan. Innovative mitigation strategies have never been more important, and AI and digital technologies are set to play a key part in the energy transition.
Read the full SEH Bulletin Issue 5.