Open Access

ARTICLE

Blockchain-Supported Trustworthy Carbon Data Accounting and Asset Circulation Mechanisms for Transformation Finance

C. A. Bindyashree¹, Chitra G.², Syed Muzamil Basha³, Hamed Taherdoost^{4,5,6,7,8,9,*}
1 Department of ISE, The Oxford College of Engineering, Bangalore, India
2 Department of CSE, Vemana Institute of Technology, Bangalore, India
3 School of Computer Science and Engineering, REVA University, Bangalore, India
4 Faculty of Arts, Science and Technology, University Canada West, Vancouver, BC, Canada
5 GUS Institute, Global University Systems, London, UK
6 College of Technology and Engineering, Westcliff University, Irvine, CA, USA
7 Research and Development Department, Hamta Business Corporation, Vancouver, BC, Canada
8 Faculty of Information Technology, Victorian Institute of Technology, Melbourne, VIC, Australia
9 Department of Electronic Engineering, National Kaohsiung University of Science and Technology, Kaohsiung, Taiwan
* Corresponding Author: Hamed Taherdoost. Email:

Energy Engineering https://doi.org/10.32604/ee.2026.084451

Received 22 April 2026; Accepted 29 May 2026; Published online 31 July 2026

Abstract

In the present times, Transformation finance has become a prominent approach for a systematic financial channel to facilitate the step-by-step decarbonization of carbon-intensive sectors. Such mechanisms rely on the accuracy of carbon emissions data to measure environmental performance and to inform capital decisions. The current carbon accounting methods are limited by inadequate data-collection provisions, slow verification processes, and low auditability, which undermine the reliability of emission-reduction claims and constrain the effectiveness of carbon asset markets. In the present research work, a blockchain-based framework is proposed that will create reliable carbon data accounting and facilitate structured carbon asset circulation within ecosystems of transformation finance. The framework establishes a single carbon lifecycle for data, integrating real-time emission tracking, multi-step verification, a secure registry, and computer-generated assets. The datasets of industrial emissions used to test the operation of the proposed system under multi-sector conditions include energy systems and manufacturing activities, logistics networks, and urban service infrastructure. The objective of the proposed framework is to measure the reliability of carbon accounting by normalizing emission intensities, estimating verification confidence, and scoring trust with uncertainty. In addition, a circulation model is proposed to describe the liquidity of carbon assets, the efficiency of their utilization, and the stability of decentralized transactions. The outcome of the present research is to regulate the creation and transfer of tokenized carbon assets, which guarantees the consistency of environmental performance and financial representation. The review shows a quantifiable increase in the visibility of emission records, a decrease in verification delays, and greater visibility into asset circulation processes compared with traditional centralized systems. The suggested framework establishes a logical link between verifiable carbon-reduction results and decentralized financial mechanisms, enhancing the operational feasibility of transformation finance.

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Keywords

Blockchain technology; carbon accounting; transformation finance; carbon assetization; smart contracts; carbon credit tokenization; sustainable finance; distributed ledger systems; climate finance; carbon market transparency

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