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Energy policy is too often not designed for energy consumers in a low-cost and consumer-friendly manner. This paper proposes a novel Stackelberg game and Blockchain-based framework that enables consumer-centric decarbonization by automating iterative negotiations between policy makers and consumers or generators to reduce carbon emissions. This iterative negotiation is modeled as a Stackelberg game-theoretic problem, and securely facilitated by Blockchain technologies. The policy maker formulates carbon prices and monetary compensation rates to dynamically incentivize the carbon reduction, whereas consumers and generators schedule their power profiles to minimize bills and maximize profits of generation, respectively. The negotiating agreement is yielded by reaching a Stackelberg equilibrium. The exchanged information and controlling functions are realized by using smart contracts of Blockchain technologies. Case studies of GB power systems show that the proposed framework can incentivize 9% more bill savings for consumers and 45.13% more energy generation from renewable energy sources. As a consumer-centric decarbonization framework, it can at least reduce carbon emissions by 40%. [Display omitted] • A novel consumer-centric and negotiation-based framework to decarbonize power systems. • A Blockchain based platform to integrate the exchanged information and controlling functions of the power system scheduling into data structures, nodes, and smart contracts of Blockchain networks. • How Blockchain based platform can prevent cyber attacks is discussed. • Case studies demonstrate the effectiveness of the proposed framework in the context of Great Britain power systems. [ABSTRACT FROM AUTHOR]