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March 25, 2026Procedia Computer Science0 citationsOpen Access

Evaluating the Transparency and Traceability of Carbon Tokens: Blockchain’s Role in Circular Economy Certification

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RAReyan AbbasConstructor UniversityOVOmid Fatahi ValilaiUniversity of Bremen

Key Points

  • To evaluate how blockchain technology can enhance the transparency and traceability of carbon emissions in the automobile supply chain.
  • Proposed a blockchain-enabled architecture for tracking carbon emissions.
  • Integrated Enterprise Resource Planning and Manufacturing Execution Systems.
  • Utilized IoT sensors to collect energy consumption and emissions data across the supply chain.
  • Implemented smart contracts to manage tradeable carbon-credit tokens and payments.
  • Provided a verifiable real-time tracking system for carbon emissions and sustainability metrics.
  • Improved operational visibility by connecting shop-floor machines to the blockchain.
  • Enhanced transparency and prevented issues like double counting in carbon markets.

Abstract

This paper proposes a blockchain enabled carbon emissions tracking architecture for the automobile manufacturing supply chain that is integrated with Enterprise Resource Planning, Manufacturing Execution Systems and Internet of Things data with smart contracts to deliver verifiable, real-time sustainability metrics. This has been justified due to the literature review lack for carbon emission calculation in supply chain levels. ERP modules standardise multisource planning, procurement and inventory records before committing them to a private ledger, while MES bridges shop-floor machines to the chain, ensuring fine-grained operational visibility. Distributed IoT sensors placed at each lifecycle stage from raw material extraction and production to logistics, recycling has been enabled to transfer energy consumption and emissions values to the ledger, where embedded algorithms apply a uniform calculation methodology. Smart contracts automatically convert validated tonnes of CO₂ into tradeable carbon-credit tokens, release payments upon compliance, and maintain an immutable audit trail accessible to regulators with autonomous permissions. By eliminating centralised gatekeepers, the model enhances transparency, prevents double counting and reduces administrative latency that plagues conventional carbon markets. Future studies are suggested for exploring multi modal transport modelling, cross sector scalability and adaptive contract logic that incorporates emerging scientific baselines and regulatory thresholds.

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Cite This Study

Abbas et al. (2026) studied this question.

synapsesocial.com/papers/69c37ba2b34aaaeb1a67e375https://doi.org/10.1016/j.procs.2026.02.398
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