Strategic Niche Management for Levering the Blockchain Technology towards Scaling up the Financing of Nature-based Solutions through Voluntary Carbon Markets: A Case Study.

Abstract

This study investigates the potential of leveraging Blockchain Technology and Voluntary Carbon Markets (VCM) to increase funding for rural nature-based solutions (NBS). Using Geels' Framework of Strategic Niche Management, the research examines the socio-technological innovation niche centred around blockchain applications in the context of NBS funding. The study addresses the research question of how blockchain technology can contribute to closing the funding gap for NBS through VCM. Data is gathered through qualitative interviews with experts and stakeholders active in the niche. The findings reveal that blockchain technology can address certain barriers hindering increased funding for NBS. Additionally, the study explores the niche's management and experiment processes, which appear to be well-structured and purposefully designed. Furthermore, the research investigates processes around scaling up the niche to effectively close the funding gap. It highlights the nascent stage of the niche, indicating that upscaling patterns are yet to be established. However, the study finds that the impact and implications of such technological systems must be understood better before scaling can be pursued. The academic significance of this research lies in its exploration of a disruptive technology that remains largely unexplored within the specific use case of NBS funding. The study contributes to the understanding of the potential role of blockchain in addressing the funding challenges faced by NBS initiatives. Societally, the research underscores the importance of closing the funding gap for nature-based solutions, as these interventions play a critical role in combating climate change and biodiversity loss. By shedding light on the promising applications of blockchain technology and VCM in funding NBS, this study offers valuable insights for policymakers, practitioners, and researchers striving to achieve sustainable and impactful solutions for environmental challenges.