Human existence is under threat. Rain forests are being cut and peat lands are converted in large tracts of farmland. The trees in these landscapes are indispensable for the existence of mankind, as they transform carbon dioxide (CO2) into oxygen (O2). CO2 belong to the category greenhouse gasses (GHG) that are able to trap heat from the sun in the atmosphere.
Other gasses that are also considered GHG are N2O, CH4 and fluoridated gasses. High temperatures causes millions of years stored ice on the arctic to melt. The excessive amount of salty seawater threatens coastal communities and entire ecosystems by – for example – salt intrusion, which makes coastal farmland inadequate to cultivate subsistence crops, such as rice. This drives migration to higher areas and can result into further deforestation.
An estimated 80% of the deforestation worldwide is caused due to agricultural expansion. At least one-third of this devastating number comes from small-scale farmers. Concerned with the adverse effects of climate change, governments convened and supported the creation of cap and trade markets. Thanks to these markets, carbon creating projects can be certified by third party auditing firms.
Once these projects are certified, project operators are obligated to contract a third-party auditing firm that will conduct regular verification visits. This is done to ensure that carbon credits are backed by the respective assets. When projects are validated by a third-party auditor, carbon is converted into carbon credits. These credits are then added to a pool. Polluting stakeholders, such as governments and companies are able to tap into this pool and purchase these credits to compensate for their polluting activities. However, companies that allow project operators to apply for carbon credits require high fees for registration and monitoring, which results in a low trickle-down effect for communities.
Hence, there are 2 problems; the first is that there is a negative equation for farmers to conserve trees, wherein (simply put):
C (utting trees) > O2 (produced)
Secondly, farmers do not have access to the carbon market. This is curious, as farmers are the main actors when it comes to deforestation worldwide.
Collatio Insignis is exploring a technology, based on Blockchain, that could turn around the negative equation by addition adding a value for farmers, accessible for every farmer worldwide. The project is planned to be launched with the B’laan community in 2019.
If you are an investor and you would like to receive more information, please email Oliver Ortiz firstname.lastname@example.org.