Introduction

“Everyone wants to use blockchain. It’s not a question anymore. We just need to figure out what’s the right way to do that. We can’t afford to have wrongdoings in this space anymore.” ~ Climate Activist

Disruption For Climate Action

Our thesis is that blockchain-enabled applications of NFTs, DAOs and PoS have the potential to enable the creation of a global carbon offset marketplace that can decarbonize the economy through market forces.

Regenerative Finance (ReFi) will deliver significant investment into sustainability projects for our planet. By democratizing access to new asset class, everyone can take responsibility for reducing their carbon emissions.

To achieve this goal we have to provide solutions to the following challenges:

1. Monitoring, Reporting and Verification (MRV) systems to collect the data points required to validate carbon emissions or reductions.

2. A Registry of asset that stored in a ledger and directly connected to the data.

3. Independent asset ratings to provide quality differentiation.

4. Efficient marketplaces to transact where counterparty risk is managed, and there is enough liquidity for adequate price discovery.

5. Custodian and audit services to build trust.

6. Insurance and risk management products to mitigate the risk of under delivery.

Businesses want a solution that can automatically report on these metrics In a granular and timely fashion. They are facing regulatory pressures and from their customer about how they are reducing their carbon footprint.

Voluntary Carbon Market

The average price of a carbon credits in the voluntary carbon market (VCM) was estimated to be $3.37 per ton in 2021, up from $2.50 in 2020, this low price reflects the perceived quality and disaggregated demand pools. The academic consensus is that the price per ton needs to be $100 or greater to sizably incentivize the scalable decarbonization projects to transform the global economy to net-zero emissions. We believe the creation of a global interoperable decentralized exchange with price discovery and variance to reflect quality is a systemic way to use market forces to incentivize decarbonization on a mass scale.

In our view, building a marketplace now that factors in quality variance enables society to be ready to scale and if the will and budgets materialize to act. A liquid marketplace appropriately pricing qualitative factors such as permanence is likely to result in carbon credits over time that have both quality scores issued by third-party rating agencies and the integration of standard time scales.

Carbon credits alone will not and cannot be enough to address the climate emergency and must be a complementary strategy to direct emissions reductions