Drive and manage carbon removal investments through Web3

Transcript

foreign [Music] co-founder and CEO of carbonable really delighted actually to take part in this great event thanks at CC and uh really happy also to shed some light on one very important matter carbon removal Investments so which are both a topic which is essential for Global sustainability and also for corporate ESG agendas in this talk we'll review the overall context of carbon removal dive a bit more into the specifics of

the carbon assets so carbon contributions the challenges of this Market understand you know what are the the problem facing this market right now and the role of Technology actually to solve them so first thing first let's get the elephant out of the room when you think of carbon contribution which is formerly called carbon offset what is the first word that come to mind to you guys go ahead don't be shy what's that there you go so I was pretty sure about this thanks for for mentioning it so yeah the real question I guess is okay are carbon offsets uh green washing and not and well as you know professional the field I think it's part of our duty

to bring some uh Clarity and understanding on okay what are carbon contributions why are they useful what are they truly useful uh for the future uh of the planet and for the road to balance uh climate so the first thing that we would like to clarify is a clear difference between those two type of markets and two type of assets because a lot of time people sort of combine both so on one way you have like the image emission trading system so regulatory carbon credits on the other end you have a voluntary carbon Market carbon contributions so carbon credits essentially works on the cap and trade type of framework they're at the government level

users only company and the idea is okay you have your company you have a cap if you go above you have to pay carbon credits so it's sort of a punishment and an incentive for companies to reduce their Emissions on the other end you have voluntary carbon markets or carbon contributions these are actually towards like the Net Zero goal of companies so they apply to all companies and these uh help to achieve an accounting balance between the emissions that a company emits and then the investment that they do to absorb so to remove and or avoid carbon contributions from the atmosphere so they're actually a financial asset to finance a Green Solutions solutions that

actually remove or avoid carbon removal so they're completely different and just to be clear here we're going to talk only about carbon contributions so well is this financial incentive uh interesting needed well the truth is science is unanimous yes and it's a big yes so to reach climate balance we not only what is currently existing we need at least three times more carbon removal right now even though we go to the lowest level of emissions that we can achieve as a civilization we need at least three times more Beyond like the climate change per se they're also super useful for two other key components which are biodiversity protection and a

livelihood development so all in all this is a very big yes and actually three times more than what we have right now um good news is uh actually there's going to be now a regulation so law that will push companies toward uh Net Zero objective um the truth is like for example in Europe is pushing hard on this Europe has committed already uh Net Zero by 2050 and they're putting laws right now so one of them being like the csrd to actually have all companies sustainability plans audited on a yearly basis so it's not only now okay we can announce whatever we want now okay you assume like if you're committing to Net

Zero we will actually now audit your path towards net zero so the truth is Reina they're over already 2 000 companies committed uh over next year there's going to be now 50 000 companies that will have the csrd as a uh obligation and the infinite what it's going to end up as is all companies pretty much going towards or push towards net zero in Europe so what is net zero just really briefly so we understand um this is when you reach your incompressible level of emissions you cannot reduce it more and then you will actually counterbalance by financing solutions that actually remove or avoid

carbon emissions from the atmosphere so that's the contribute part and on the contribute part uh carbon carbon contributions well this is a booming Market as a result of everything we discussed with Europe and and commitments in general so you can see now we're really at the beginning of a market that's going to be huge is about to Skyrocket we're talking about like a factor of by 10 20 100 to a certain extent depending on the forecast from Bloomberg or McKinsey and I think you see it coming well it creates two things like one is a significant risk and or cost for companies who are not anticipating enough this need this road towards global net zero so the the further the

weight the more expensive it will cost and then it creates also obviously like an opportunity for for investors forward investors who are actually forward financing carbon contributions so with potential High returns so that's you know a significant risk and opportunity now you could ask yourself okay so why um aren't they more investment even more so now on on carbon contributions so before going there and and look at the challenges let's take a step back and understand a little bit like what is the carbon contribution per se so simple question a simple definition one carbon contribution is the equivalent of one tone of uh CO2 that

has been removed or avoided from the atmosphere now with that definition what do you think those carbon contributions are fungible like your c20s non-fungibles like nfts or semi-fungible like bottle of wines well great well indeed I had to use a French national emblem to to that question so let's let's look at the projects themselves so projects are they all equivalent the answer is completely not quite quite clearly not a couple of examples you have you have projects such as wind turbine which are Technology based you have other projects

which are nature based you have removal projects so removing a CO2 from the atmosphere such as carbon such as nature restoration and then you have avoidance which is for example nature conservation so all of those are really different and the list goes on and on and on actually when we look at the details carbon projects and carbon credits they're defined by a set of metadata so not only one like here there are 12 but they're much much more than this to be to be to be clearly transparent the truth is a carbon contribution is not it cannot be considered as fungible impossible if fungible would mean that

all those components are exactly equal so all those criteria are exactly the same it happens in only one case it means when this is the very same project and the very same vintage year so that's when those assets are fungible hence the the answer that you you've guessed which is semi-fungible all those criteria they affect obviously the price of such assets and they're not the only one one also is when so it's actually the life cycle status so the question behind is when and how get those carbon contributions to make it very simple there are two ways two main ways let's say to get carbon contributions either you forward Finance future of carbon contributions

or you directly purchase so on spot already audited carbon contributions and obviously you don't have the same risk you don't have the same liquidity you don't have the same quality you don't have like plenty of other elements enhance infinite you don't have the same price of that to say investing in carbon contributions it doesn't seem as it's not as easy as it might seem and depending on your criteria depending on your budget depending on all of this you can then adopt the strategy that you like so now go back going back now we've laid the foundations we know what the carbon removal Market is why it's booming what is a carbon contribution itself how it's

valued now let's understand the key challenges that prevent this market right now to reach its full potential first and I think we discussed it is complexity you know there is a major Gap in understanding for for non-expertive Fields this is really a niche expertise at this moment and even so structurally there is a big lack of standardization at a regulation standard a market Standard overall so complexity is definitely uh a problem second one is actually all the eyeballs are on buying and selling carbon contributions whereas the true problem the real problem right now facing the the most obvious problem for for this

Market is actually the lack of Supply as you can see demand is going huge supply we're going to face a supply crunch very promptly so the need of the market is to fund quality Supply now the biggest threat is definitely greenwashing I think this was the first words that came out this has a bad representation and you as you know reputations Die Hard um but they're it's actually true that many of those projects originally were could be considered as greenwashing green Russian could be um due to various factors so the certified the certified methodology The Source the poor sourcing the poor due diligence the poor monitoring etc etc there are a bunch of reasons that create

green washing and the problem is that the backfire for that is actually extremely important for companies investing in this last but not least a big lack of tools right now actually once you have your strategy uh put down together even though like you weren't you were with a consultant let's say he said okay you should buy these type of assets here here here which tools you have so to fund to actually manage those assets to actually monitor those assets to actually report on those assets Etc right now there is a big lack and all of this almost is done manually with the big you know time consuming factor and risk factor Associated to this and we experienced this from the company we work with so what is the Technology's role to solve these challenges um the truth is uh we're uh we're glad

because there are some awesome technologies that exist and that can answer the majority of them so what if I told you that you know we could leverage blockchain technology and D5 tokenizing carbon projects themselves so hence uh streamlining the forward financing accessibility to anyone hence providing Market liquidity transparency and traceability right from the get-go right from the very first point in the life cycle of the funding of the project what if we could leverage also blockchain technology to help diversification with digital assets smaller fragmented smaller amount of money invested what if we could minimize costs through this give assets liquidity you can sell them

back at the time you want and what if we leveraged all the data that we have to provide business intelligence what if we actually took the very best features of all the leading Erp systems and applied it to carbon contribution so that you can actually automate a lot of tasks accounting Etc while facilitating the management of your portfolio and the management of your auditability as a whole on a continuous basis what if we use satellite imagery and AI to actually monitor the projects over time so that you have a very unified way to follow through every single project from the same way in an independent and unbiased way standardized

Etc what if we used data as a whole data management and reporting to provide to unify all the data from those different projects again same way of interpretation same line have data about global project and asset level provide Dynamic real-time reports ongoing you see me coming and I'll go quick because I know I'm about to to finish the the minutes I had to take a couple of minutes of course to talk about carbonable you saw it coming I guess so we're a carbon removal investing arm so what what we do is we converted all those what-ifs into reality and we really now what we do is we streamline tailored carbon Investments we streamline

management accounting and auditability on those assets we provide continuous monitoring on all projects supported and personalized real-time rewards those are some clients of us telling good stuff we are truly humbled because some of them are big both on the B2B side and the b2c side humbled and really glad actually to have such a great feedbacks to conclude I would say back to the original question so our carbon contribution is a myth or reality if there was one key takeaway to remember for all this I hope it would be that actually carbon contribution yes are more more than needed number one yes there are problem in this market but yes there is technology and

Technology can answer some of those and the majority of those problems and I think our mission and our vision is this is leverage the most Advanced Technologies whatever they are blockchain AI satellite imagery Etc to elevate carbon investing to a new standard of transparency traceability and operational efficiency and last is this a myth or reality the opportunity or the risk behind well what we can say is that from the project that have been financed forward Finance last year at and the price of those same assets sold this year there's been a plus 95 percent increase those are facts we don't have like the crystal ball but all of that Plus data plus forecast then to think

that indeed this is a high risk and high opportunity type of uh dilemma and um and uh and and that's that's about it I think I would like to uh so B2B wise if you are here B2B don't hesitate to reach out we are more than happy to actually uh support you on on your road to Net Zero and our carbon investment and b2c wise we are going to do actually uh another uh public sale uh so stay tuned on our social media thank you very much for all your attention much appreciated I hope you found it worthwhile [Applause] does anyone have a question thank you for the presentation uh two

questions um regarding the token I understand it's a kind of nft can it be considered as a security token and um so can you trade it on secondary markets and second question what is your business model plenty of questions but great questions so yes indeed like we part of our tokenization is on on the project level and at that level it's sft so send me a vegetable token as we discussed because it provides great advantages and and is actually reflects that you know those are semi-fungible by Nature all the assets underlying assets um it's tradable on secondary Market Etc

yes Community uh Securities so that was obviously like a raising question that we had for you know the past year because of all regulation being you know discussed Etc now uh we are clear on the fact that this is not and and so we decreased that and so that's why also we were waiting a little bit to push further on b2c we didn't want to expose anyone to this type of risks so now that we're clear that this is not a security we can definitely push further business model is pretty simple on the financing side we take a cut just because this is the service that we provide to actually provide like the very best projects with heavy due diligence thorough due diligence Etc we take also integral consideration like uh other providers in

satellite imagery Etc to actually scan the projects before um sending it for funding so we take a cut on this and a small cut and we ensure that actually at the bare minimum 70 goes back to the project develop including our fee certification fee auditing fee etc etc so we we like our goal is really like to maximize the funding of such uh projects which are you know just simply uh essential for the planet and the second part of it is a SAS model because all the size that we provide on the management monitoring reporting and whatnot is you know is yes there is like the the protocol behind that powers it but it's it's a SAS used by uh so far so

companies and also will be used by b2c also um last quiz question so I'm just a little confused so all the Vera credits that were tokenized onto the blockchain were tokenized by toucan clay medow and radon Network there have been none that have been tokenized since then they're all spot credits so your protocol are you just smart Contracting the legal rights to Future credits that will one day be tokenized if Vera says yes

so we're in fact focusing right now more on the forward financing part because this is like actually the bulk of the problem right now on the carbon offset Market it's not necessarily like the selling which goes well it's actually funding those projects which is essential because like there's not enough Supply so that's what we streamline and so far the carbon credits weren't tokenized on our uh on our solution now we're in the process of moving forward towards like the tokenization of those but this is like a deeper um conversation that we couldn't like uh explore in just like a couple of minutes right here okay thank you again and thank you

everybody [Applause]