By: DeFi Carbon
A decentralized platform that fosters initiatives for carbon offsetting
Use case
The Voluntary Carbon Market is a reality and one of the most powerful tools in mitigating the effects of climate change and inequality, for its potential to positively impact the lives of tens of millions of people living in situations of economic and social vulnerability around the world. In addition, it is a huge business opportunity, with projections varying between US$ 50 billion and US$ 100 billion by the year 2030 (USD 1 billion in 2021).
Currently, more than 6,500 companies around the world have pledged public carbon neutrality, "net zero" or related commitments, generating unprecedented demand for carbon credits, but can’t find these credits in desired quality and volume. This is a key driver behind the exponential growth predictions for the VCM.
It is clear that the current bottleneck in the market is the origination of quality carbon credits, for many challenges and barriers hold back the exponential growth potential, especially information asymmetry and heterogeneity of carbon credits.
Traditional business models centered in arbitrage, both on and off-chain, are the rule in the market, distorting the essence of VCM and negatively affecting the viability of new projects especially those that bring along social and diversity co-benefits.
Why unique?
TakeCarbon is the only initiative in the market that is not interested in buying cheap, or developing its own carbon credits, aiming for high selling margins. It is right the opposite, as our business model privileges the income maximization for projects, because it is our belief that money should go to the origin, where it is needed most.
Our value proposition is to provide the very latest in governance, transparency, and technology on a decentralized platform that connects different stakeholders and fosters relations and initiatives related to carbon offsetting, co-benefits, and other ESG assets around the world.
The direct connection between the initial and final links of the chain, with governance and reduction of transaction costs, will increase the attractiveness of investments in new projects that generate carbon credits. The increase in investments will benefit all participants in the value chain, generating a virtuous cycle of scale gains and further cost reduction in Certification and Monitoring, Reporting & Verification (MRV).
TakeCarbon envisions carbon footprint offsetting as a journey designed to induce real change in the lives of entire populations. As such, carbon offsetting is not an end in itself. The protocol’s design focuses on contributing to the United Nations 2030 agenda for sustainable development, as well as the Paris Agreement. Innovation through blockchain technology applications is a unique and profitable business model designed to be the obvious choice for the best carbon credit projects, investors, and final consumers.