The Role of Digitization in the Global Carbon Market

Abstract

Global warming is one of the major challenges of our time. To intensify the fight against it, it is necessary to redirect and expand financial flows to address this problem. This is facilitated by the growth of the carbon market, which can be significantly accelerated through the comprehensive adoption of digital technologies. The study reveals the role of digital technologies used in certain areas and at several stages of the carbon market, as well as the advantages and disadvantages of their application.
Using such theoretical methods of scientific research as deduction and analysis, the characteristics of the current state of the global carbon market are given. With the help of comparison and synthesis methods, the role of individual digital technologies in the development of the carbon market in the world is revealed.
The authors conclude that the comprehensive use of digital technologies may have a twofold impact on the carbon market. On the one hand, their application may stimulate the development of regional carbon markets by increasing the transparency, reliability, and standardization of markets, which in the future could contribute to their integration into a global market and overcoming fragmentation. On the other hand, the policy pursued by several large countries and blocs to strengthen the technological isolation of regions can further increase the fragmentation of the carbon market at the global level.