Towards Energy Transition: Use of Blockchain in Renewable Certificates to Support Sustainability Commitments

Corporations increasingly consider sustainability as an important goal and set net zero carbon emissions targets, consequently looking towards their electricity procurement to achieve them. Guarantees of Origin (GOs) are widely used insurances for the renewability supplies proofs compliance renewable standards; however, they suffer from structural problems. Their transactional history cannot distinguish between those traded among market actors ones that come directly power plants, giving rise transparency issues. Certificate trading dissuades producers investing in increase capacity resulting lack additionality while complex frameworks administrative structures emerge keep track vast network GOs. These issues can be resolved through introduction blockchain networks which provide help incentivise investment increasing automation process simplification. This review explores benefits challenges implementation GOs proposes a rethinking how this scheme may fulfil future needs energy sector.