Blockchain-enabled peer-to-peer energy trading: A global framework for decentralized carbon-neutral energy systems

Abstract

This paper examines the potential of blockchain-enabled decentralized peer-to-peer (P2P) renewable energy trading to enhance global energy access, improve system efficiency, and strengthen climate accountability. The proposed framework combines smart contracts, IoT-enabled smart meters, and mobile interfaces to facilitate real-time, transparent, and auditable energy transactions. Unlike traditional centralized grids, this model supports the participation of renewable-deficient regions by enabling tokenized imports of green energy and integration into carbon markets. By simulating environmental and economic outcomes across varying adoption levels (10%, 25%, and 50%), the study provides insights into carbon emission reductions, household energy cost savings, and the implications for distribution utility (DISCOM) revenues. The analysis also explores alignment with global carbon compliance frameworks such as Verra, Gold Standard, and the EU ETS. Results suggest that blockchain-based systems could contribute meaningfully to Net Zero goals and support international commitments such as the United Nations Sustainable Development Goals particularly SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action). While promising, the approach requires supportive regulatory mechanisms, infrastructure investment, and stakeholder coordination for scalable deployment. This research offers a forward-looking perspective on integrating digital technologies with decentralized energy systems to support low-carbon, inclusive growth.