How big data, AI and blockchain can accelerate low-carbon urban development

A new academic study pinpoints that artificial intelligence (AI), big data, and blockchain technologies as critical catalysts in cutting urban carbon emissions and reshaping cities toward sustainable futures. Published in Systems, the research proposes a strategic approach for harnessing digital innovation to achieve carbon neutrality goals.

The study "Identifying Key Digital Enablers for Urban Carbon Reduction: A Strategy-Focused Study of AI, Big Data, and Blockchain Technologies" offers a comprehensive framework for understanding how these digital tools interact to support low-carbon urban transformation. Using a hybrid analytical method that combines the Decision-Making Trial and Evaluation Laboratory (DEMATEL) with Interpretive Structural Modeling (ISM), the authors provide actionable insights for policymakers, industry stakeholders, and urban planners.

Digital enablers shaping urban carbon reduction

The research identifies twelve critical success factors (CSFs) that drive carbon reduction in urban areas, categorized into three dimensions: digital infrastructure and technological applications, digital transformation of industry and economy, and sustainable urban governance. These factors form the backbone of a digital economy capable of decarbonizing cities through advanced energy management, industrial optimization, and data-driven governance.

Among the most influential drivers, e-commerce and sustainable logistics emerged as the leading force in reducing emissions. AI-powered route optimization, blockchain-backed supply chain transparency, and green logistics strategies collectively minimize carbon footprints associated with urban freight. The study underscores the need for coordinated deployment of these technologies to make transportation networks cleaner and more efficient.

The adoption of the circular economy was identified as another decisive factor, enabling resource recycling and reducing waste through AI-driven waste management and blockchain-based material tracing. Additionally, cross-sector collaboration stood out as essential for innovation, ensuring governments, businesses, and academic institutions work together to accelerate digital solutions for carbon mitigation. These findings indicate that collaborative ecosystems are as crucial as technological advancements themselves.

The study also highlights foundational enablers such as digital infrastructure development and smart energy management systems. These elements, including 5G networks, IoT sensors, and AI-driven smart grids, form the underlying technological framework necessary for real-time carbon monitoring and energy optimization. Without these base components, the adoption of other carbon reduction strategies would be significantly hindered.

Interactions between technologies and low-carbon strategies

By applying sustainability transitions theory and institutional theory, the researchers analyzed how AI, big data, and blockchain interact within urban ecosystems. Their methodology revealed a hierarchical structure where foundational technologies support downstream innovations, creating a layered approach to decarbonization.

At the base level, digital infrastructure and cross-sector collaboration enable the integration of smart technologies into urban planning and governance. These systems provide the platform for smart energy management, which in turn enhances energy efficiency and facilitates renewable energy adoption. This linkage is critical in transitioning cities away from fossil fuel dependence and toward climate-resilient energy systems.

Mid-level factors such as industrial digital transformation and intelligent transportation systems bridge technological capacity with urban operations. AI- and IoT-enabled industrial practices optimize production, while smart transport solutions reduce emissions from mobility sectors. These improvements require coordinated regulatory frameworks and investment incentives to scale effectively.

The top-level success factors, including citizen engagement, digital governance, and data security in carbon tracking, define the long-term sustainability of urban decarbonization efforts. Engaging citizens through AI-powered applications, gamified incentives, and real-time carbon tracking tools encourages behavioral shifts toward low-carbon lifestyles. Blockchain-secured carbon tracking further ensures data integrity and transparency, fostering trust in sustainability initiatives.

While blockchain holds great promise for transparent carbon markets, the study acknowledges its current limitations due to high computational demands and scalability challenges. Overcoming these technical barriers is essential for expanding its role in carbon governance.

Strategic pathways for carbon-neutral cities

The findings offer a roadmap for urban stakeholders to align technology deployment with sustainability goals. The authors recommend strategic investments in digital infrastructure, emphasizing that advanced connectivity and data systems are prerequisites for all other decarbonization strategies. Cities that invest in robust 5G networks, cloud computing capabilities, and IoT-enabled monitoring systems are better positioned to integrate renewable energy, optimize transportation, and enforce emissions policies.

Governments play a pivotal role in driving these changes. The study suggests that policymakers must establish comprehensive frameworks supporting AI-powered carbon monitoring, smart grids, and blockchain-based carbon markets. Financial incentives, green financing programs, and international cooperation are critical to fostering adoption. Digital governance mechanisms should ensure transparency and encourage collaboration across sectors.

Businesses are urged to embed green digital transformation into their core operations. AI-driven analytics, blockchain-enabled supply chain transparency, and IoT-based manufacturing optimization are essential for reducing industrial emissions. By investing in these technologies and training employees in digital sustainability practices, companies can strengthen their competitive edge while contributing to carbon neutrality.

Citizen engagement remains a cornerstone of success. Public participation, supported by digital tools and policy incentives, ensures the legitimacy and scalability of urban climate strategies. Behavioral alignment with sustainability objectives is necessary to translate technological innovation into measurable environmental outcomes.

The study also calls attention to the global applicability of its framework. Although the analysis focuses on China, the model is adaptable to other regions and sectors where digital technologies intersect with carbon reduction policies. It can be applied to domains such as smart agriculture, green manufacturing, and regional decarbonization initiatives, provided local conditions and regulatory contexts are considered.