The world’s energy system is in dire crisis, and developing the capacity to deliver net zero over the next decade may be the most important transition that humanity has ever needed to make. Blockchain technology could potentially improve the energy sector by enabling more efficient and secure transactions, as well as promoting other industries’ decentralisation and encouraging the use of renewable energy sources. However, to avoid unintended negative consequences, it is important to address issues such as high energy consumption and the potential concentration of control in the use of blockchain for energy. Additionally, careful consideration should be given to the governance and regulation of blockchain in the energy sector to ensure its responsible use.

Blockchain has the potential to revolutionise the energy sector by enabling the creation of decentralised, efficient and secure systems for managing energy production, distribution and consumption. Through smart contracts, blockchain can facilitate peer-to-peer trading of energy, making it easier for individuals and businesses to generate and sell renewable energy to their neighbours. This can lead to the more efficient use of renewable energy sources and reduce reliance on centralised energy providers.

The overall objectives of this report are:

1. to outline guiding principles and provide an overview of the current state of play related to the environmental impact of certain blockchain technologies;
2. to outline a potential approach for a unified impact assessment that balances economic, environmental and social perspectives so that blockchain companies and solutions are ready for the upcoming regulation, rather than lagging behind it; and
3. to illustrate examples of where and how blockchain has been effectively applied to both demand and supply issues of investment in energy and blockchain, moving towards net-zero solutions.