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A Blockchain-Oriented Software Engineering Architecture for Carbon Credit Certification Systems

Matteo Vaccargiu, Azmat Ullah, Pierluigi Gallo

TL;DR

The paper tackles the challenge of certifying carbon credits from renewable-energy installations by designing a four-layer architecture that integrates IoT data collection with a permissioned blockchain for certification. It validates the approach on a 100 kWp PV case study, detailing real-time sensing, edge processing, and on-chain issuance of credits while aligning with European regulatory frameworks and voluntary standards. The key contributions include formalizing the data flow from energy measurement to certifiable on-chain records, outlining the role of smart contracts and batching to control costs, and discussing practical governance and regulatory constraints. The proposed architecture aims to deliver auditable, verifiable carbon-credit records suitable for third-party verification and market access, particularly for SMEs.

Abstract

Carbon credit systems have emerged as a policy tool to incentivize emission reductions and support the transition to clean energy. Reliable carbon-credit certification depends on mechanisms that connect actual, measured renewable-energy production to verifiable emission-reduction records. Although blockchain and IoT technologies have been applied to emission monitoring and trading, existing work offers limited support for certification processes, particularly for small and medium-scale renewable installations. This paper introduces a blockchain-based carbon-credit certification architecture, demonstrated through a 100 kWp photovoltaic case study, that integrates real-time IoT data collection, edge-level aggregation, and secure on-chain storage on a permissioned blockchain with smart contracts. Unlike approaches focused on trading mechanisms, the proposed system aligns with European legislation and voluntary carbon-market standards, clarifying the practical requirements and constraints that apply to photovoltaic operators. The resulting architecture provides a structured pathway for generating verifiable carbon-credit records and supporting third-party verification.

A Blockchain-Oriented Software Engineering Architecture for Carbon Credit Certification Systems

TL;DR

The paper tackles the challenge of certifying carbon credits from renewable-energy installations by designing a four-layer architecture that integrates IoT data collection with a permissioned blockchain for certification. It validates the approach on a 100 kWp PV case study, detailing real-time sensing, edge processing, and on-chain issuance of credits while aligning with European regulatory frameworks and voluntary standards. The key contributions include formalizing the data flow from energy measurement to certifiable on-chain records, outlining the role of smart contracts and batching to control costs, and discussing practical governance and regulatory constraints. The proposed architecture aims to deliver auditable, verifiable carbon-credit records suitable for third-party verification and market access, particularly for SMEs.

Abstract

Carbon credit systems have emerged as a policy tool to incentivize emission reductions and support the transition to clean energy. Reliable carbon-credit certification depends on mechanisms that connect actual, measured renewable-energy production to verifiable emission-reduction records. Although blockchain and IoT technologies have been applied to emission monitoring and trading, existing work offers limited support for certification processes, particularly for small and medium-scale renewable installations. This paper introduces a blockchain-based carbon-credit certification architecture, demonstrated through a 100 kWp photovoltaic case study, that integrates real-time IoT data collection, edge-level aggregation, and secure on-chain storage on a permissioned blockchain with smart contracts. Unlike approaches focused on trading mechanisms, the proposed system aligns with European legislation and voluntary carbon-market standards, clarifying the practical requirements and constraints that apply to photovoltaic operators. The resulting architecture provides a structured pathway for generating verifiable carbon-credit records and supporting third-party verification.
Paper Structure (25 sections, 3 equations, 1 figure, 1 table)

This paper contains 25 sections, 3 equations, 1 figure, 1 table.

Table of Contents

  1. Introduction
  2. Related Works
  3. Methodology
  4. System Architecture Overview
  5. Physical Sensing Layer
  6. Data Collection Layer
  7. Data Aggregation Layer
  8. Blockchain and Certification Layer
  9. Blockchain Platform Selection
  10. Implication for Practitioners
  11. Regulatory Context and Market Access
  12. Exclusion from Regulated Markets
  13. Voluntary Carbon Markets as the Viable Pathway
  14. Certification Requirements
  15. Operational Pathway
  16. ...and 10 more sections

Figures (1)

  • Figure 1: Framework of the proposed blockchain-based carbon-credit certification system, illustrating the flow from IoT energy measurement to on-chain verification.