Blockchain for good - towards a more sustainable world

Transcript

[Music] all right thank you so much guys so blockchain for good um I cannot see my screen all right here we go towards a more sustainable world so we can agree that one of the most or the biggest concerns at the moment in sustainability is actually greenwashing so are those clams claims actual are they like what we want do or is like correct and some of them are not much as we seen and the nice thing is kind of we can put ESG and all the sustainability context and combine it with

technology one option is blockchain distributed Ledger technology but we also have iot and other things like AI that we can introduce as well today we're going to look into two initiatives one is the carrot Foundation project and the other one is greener token both are based in Switzerland but have operations in Brazil so we start with carrot Foundation which is a uh blockchain Network that is looking into resourcing and kind of recycling of organic waste in fact if we look at our planet at the moment we have some issues in the sense that most of what we produce in a rather short term lands on a landfill or

a dump somewhere so we don't recycle a lot and our resource consumption will increase over time massively while at the same time the waste generation will also increase so what does bring us well our greenhouse gas emission will Skyrocket and can of we have an issues in terms of temperature on the planet yet we could bring a pretty easy solution to most of that by just doubling our recycling rate and this is what we aim met with carrot Foundation like if we could address something like 85% of the issues by just doubling our recycling rate in the next 15 years and a circular economy is an

effort of network so it's a lot of providers and and participants part of it so we are part of it but also like the recyclers government authorities and waste generators and treatment facilities what we can do here is um we can have and incentivize the ReUse and recycling of organic waste for instance what we did is um we have the the idea of tracking you see that on the below side here rearward activities and bring them with some apis record them on a blockchain certify the recovery and recycling measure the

Environ environmental gains that we have on it issue carbon credits and as the like um people mentioned before there's also the option to tokenize them and what we do then is with a smart contract we do an automated payout of a fraction of it to every participant that uh led to this carbon credits this is how it looks like on this side of the screen and if we go a little bit more in detail we can see that if we start the process with a waste generat which could be like a household that dumps things out of their um doors then there will be someone picking it up like with a truck and

bringing it to a professional composting facility and if you do that you have much less greenhouse Gams emission as if you would just dump it in a landfill somewhere so the difference is something that you can capitalize on as a greenhouse gas emission saving or a carbon credit and if you tokenize that you can also Leverage The properties of blockchain meaning that you can do some smart contracts with an automated payout have a very lean backhand super efficient processes and everything becomes interesting in the sense that you could use like usdc in the beginning but afterwards issue your own propietary tokens which was the plan here so there are some advantages in doing that I'm not going through them

because uh probably today it's a bit uh it's a bit packed I just want to say that this uh very very minimal cost to verify because you can use blockchain to really look into the certificates and as we mentioned as kind of it's important that the claims can be can be made transparent and can be checked by people and if we look at the addressable Market I mean it's really not that big but a couple of billions already and I mean we can build on from there starting from organic waste and then go into glasses and other type of materials and I want to stressed the point that this is actually really a a collaborative effort so it's not just

about the organic waste producers kind of the households or so but it's also really everyone in the chain so we have the producers we have the treaters we have also like the Packers and the holders so everyone that is part of it and with the carrot Foundation we want to establish that everyone gets a share of it when we earn it if you want to read more about how we want to certify these carbon credits and how we want to issue them um you can read I can move out of the screen um the Bold recycling credit is a Manifesto that we wrote and published and the objective is to increase by 90% the circularity rate

within 15 years so you we see if that's that's going to happen and the second project which I want to present today is is greener token which is also based with operations in Brazil and here we are protecting the forest in Brazil and as we can see like 50% of the forest that is disappearing on the world it actually disappears in Brazil means 1.5 million of hectares already disappeared as you may imagine the Amazon forest is one of the treasury of our world and if you see at the greenhous gas emissions meaning absolute terms like Brazil is number five on the

world and when it comes to Forest specifically then it's the number one polluter on the world so is Brazil just a part of the problem or El a part of the solution and there is the nice thing Brazil can also be a part of the solution because actually it's really cheap to bring nature-based Solutions um down there so not just because the land is cheap or kind of because labor is cheap or because you have a lot of factors that come together and makes it ideal so it could be actually one of the solutions for greenhouse gas problems in our world if you look at the market size I mean it could be something like 1 trillion um in the upcoming future and we expect that kind of nature-based

solution will be one of the main drivers for reducing greenhouse gas emissions in the next years and Brazil could actually be leading the pack in the sense that could be the number one nation doing that on the planet so besides an interest of the investors and the public in this area kind of we also see that the carbon Market is growing on a year by-ear basis it's getting bigger and bigger which is interesting and I think it's good because this brings money back that we can use uh for a good purpose so what Greener is doing is we are preserving the forest and besides that also supporting the indigenous

people living there with transparency and governance so how does it work like actually at the moment when we look we talk that so kind of some colleagues uh this morning talked about that carbon credits are very fragmented Market at the moment and very of them have like bogus claims or it's not really clear what they have below kind of if it's really underlying it's correct so I mean it's a new way of funding nature in the sense that um it could has some potential so it's not just bad and um our methodology was done by the University of sa Paulo so it's highly scientific it's partially published in

nature um the scientific magazine there will be I will show you some some audits as well and also kind of um when it comes to it's it's a ref regenerative Finance initiative and so what it's about is like like we have four main elements first we are addressing one of the concern is like okay we put everything on blockchain so it's transparent but then also like there was one concern about can you sell the same token twice so kind of can you double it well we prevent that by having soulbound tokens so it just uh you get it in one wallet and from there you cannot move it anymore so you avoid having this double

spend or double usage uh Solutions okay crazy weather today so uh what verticles are we tapping in from a us uh from a SG perspective so we want to look into preserving life on land and then kind of supporting the quality of education and having the people that live there so we do that by partially devoting like 5% of the proceeds um to local indigenous population and we can of uh help them with the money to build more sustainable cities and kind of and um get decent work

conditions and if we look into more on the ground so kind of we really want to increase the bio and preserve the biodiversity that we have uh in the part of the Amazon so what's happening is that there is a part of the forest that Greener preserves and it gets protected against wildfires and um kind of human interaction we also um take down all all the information within the single Greener token when it's uh Minted as you can see here it is like a structured uh structure for the token so really already know kind of uh for which year to which year this

specific token relates to when it comes to carbon greenhouse gas emission reduction and I mean just kind of to guide you through the whole story so if we start by preserving a piece of land and we do due diligence on that so kind of we check on everything and we have like a specific um in Brazil there are specific government requirements for issuing a carbon credit we do that with the University of sa Pao as I mentioned and then we have a that's the surface that we currently have it's like a 150,000 but I wanted to show you that

kind of on a monthly basis we have a satellite imaging taken of of the area that we're preserving um this is audited by kpg so again we want to be against greenwashing and we have our claims legitimated by one of the big four Auditors we also have like an audit on the financial side which is done on a yearly basis by PWC um as you can see here and we use blockchain to support the traceability and the the end issue the soulbound token one token equals one ton of CO2 saving and we calculate that by Looking Backward kind of so we have we

preserving forest and we actually look at what has happened in that forest and that time so there are people from the University teams that go into like the map at 2,000 square m space um they divide it down into 100 by 20 M uh smaller lots and then they count every plant on it they measure the size of the circumferences of the plants of the trees um they count down okay what what number of animals and the species of animal that are in there you look into preserve taking out some samples from the soil so kind of from the surface but then also underground like to one M down and they will take some vertical samples but then also horizontal samples at the different uh

depth um and then you take everything of that kind of you bring it to the laboratory and you measure exactly the carbon that you still have in there um yeah and of course we work together with fire blocks and other institutional grade players just to be on the very safe side if we want to summarize the journey I mean we can start on the top left and this actually where we do an area and designate it and we work on kind of on the due diligence and kick off the process we do a study of it with the university then we do monthly audits of it because we want to preserve it over

time um we have PWC then looking into when it uh when the carbon credit is issued and kind of it's already in the fund uh we bring it on on the ethereum network we create the so bound tokens um it's in the custody of fire blocks just for for the corporates that want to buy it um we still do like the the monthly audit okay uh with the satellite imaging and uh in the end the the user can user companies can buy it what we also offer is on the other side is if we have like bigger events such as the Formula 1 grand prix in sa Paulo um they can estimate with our solution what is

actually the CO2 emission and it's just an estimate but we try to do it as accurate as possible and then you can compensate exactly that amount that you need for the specific event all right so you can do it like as I told you on a compensation for the past which is uh what most people do and then we can also do some future compensation what we do is we support uh the local indigenous population there so the uh the Aruna and we give them I mean they take care of the lot actually so kind of the forest that is there so they check that

no one comes in and does any harm kind of from a human perspective so that they D don't dump waste or kind of they burn out the forest which is um a two-sided game because they know that if they preserve the forest they will actually get the proceeds out of it once the the green um the carbon credit are issued yeah and as I mentioned one of the projects was like the offset of the Formula 1 gr pre in 2022 and 2023 okay we a lot of rain here um what we do is that we actually have like we made a calculation in the

beginning we do a submission of the inventory of what exactly I mean what the items are that actually produce greenhouse gas emission uh we do a validation of it and then we have the payment process before we activate the soulbound token so that they cannot resell it and this just bound to them for the for uh basically forever all right um I want to leave some time for questions and so far already thank you so much for your attention thank you Sil do we have a question here

sorry okay so we can sorry totally kind of skipped in line here um I just have a general question as somebody working in the nonprofit kind of climate world and wanting to understand more about how we can Leverage The Power of crypto to also like you know Finance these sustainable initiatives like you do do you have any advice especially for like you know we're from Germany right this is a very not a very digital a little bit of a conservative Market do you have any advice for us Grassroots kind of folks on where to begin because this is a wonderful success story and um um yeah I would love to try something like that myself okay thank you so much for the question so yes I mean there are different ways how you can capitalize on

new technologies and how to use it as you seen here um we want we leverage so bound tokens just because that's the idea of having um a pair which is always the same kind of between a buyer and the exact token and the offset of that and you need a concept so I mean there ideas of uh for instance of dynamic nfts where you would say that the more you invest in something the more beautiful your token becomes um so like a token of appreciation of of the thing that you're doing um then of course you can capitalize in the sense you can use tokens as an alternative to shares or just have a fraction of an investment of a certain thing

um and I think you can also capitalize like on events in a sense that you would have like some unique events um where you then keep track of that by receiving an nft of that specific occasion um I think there are many ways how you can actually connect or use blockchain for for these initiatives thank you so much also just for sharing this best practice is very inspiring thank you so much for the question thank you there was one more question okay so any more questions I ruined it if not you can always reach Sil one somewhere here right