🌐Introduction

The United Nations Environmental Programme's 2021 Emissions Gap Report highlights that climate change is no longer a future problem. It is a 'now' problem. The Intergovernmental Panel on Climate Change (IPCC) Sixth Assessment Report (AR6) further demonstrates that many of the extreme weather events experienced around the world today can be attributed to the build-up of anthropogenic greenhouse gas (GHG) emissions in the atmosphere.

Considered a “code red for humanity” by the United Nations Secretary-General, the IPCC AR6 report documents that unless there are immediate, rapid and large-scale reductions in global GHG emissions, limiting warming to 1.5°C or even 2°C by the end of the century will be beyond reach.

The message is clear: to ensure we maintain a livable climate, society must radically & rapidly decarbonize the global economy. This imperative necessitates the collective efforts of countries, corporations, and consumers to realign incentives and drive decarbonization efforts at a scale and speed never before achieved.

Luckily, there are signs of hope. Research by the Climate Intelligence Team at RMI shows that Governments - local, regional, and national - are drafting rules to mandate climate risk disclosures, and policymakers have begun implementing carbon adjustments at National borders. More than half of S&P 500 companies have sustainability goals, including science-based targets for GHG emissions reduction. Financial institutions and their regulators are beginning to explicitly incorporate climate risks into decision-making frameworks, and there are now over 2,600 signatories to the Task Force on Climate-Related Financial Disclosures. Yet, underlying all of these actions are two simple questions: will this be enough, and how can we track real progress?

The answers to those questions may come from the nascent Web3 Industry. Blockchain networks and crypto-primitives have a unique opportunity to drive collective action toward reducing emissions, showcasing industry-wide decarbonization, and creating new demand for clean technologies. In doing so, the industry can become an important player in the renewable energy space, and can help drive objective, actionable change towards environmental sustainability.