In the lead-up to the celebration of World Environment Day, it is important to consider how blockchain and regenerative finance is supporting a greener future.
Let’s start with some facts to give us a sense of why working towards a more sustainable future is vital. Our planet loses 80,000 acres of rainforest every day, having devastating effects on the most vulnerable communities. We are losing 1.2 trillion tons of ice each year, which is the equivalent of the weight of all human-made things. Did you know that many places on Earth may become too hot to live in? This could have catastrophic consequences as annual temperatures continue to rise.
As our natural environments continue to suffer at the hands of human destruction, how can governments encourage a more positive approach to economic development? The first thing is to recognise the urgency of our environmental needs, and the second is to use emerging tech to provide necessary insights into how best to tackle these large-scale problems.
Several groundbreaking Web3 projects are already in progress, leading the way in reshaping our relationship with the environment. The power of blockchain technology to extrapolate information in a timely, secure and transparent format makes positive action attainable to all green-related projects.
Transparent production supply
Blockchain technology enables the creation of transparent supply chains, providing consumers with accurate information about the origin and supply credentials of products. By leveraging blockchain’s immutability and decentralised nature, stakeholders can track and verify the environmental and social impact of goods throughout the supply chain.
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This empowers consumers to make informed choices. Celo is a blockchain provider with a long-term focus on providing access to these solutions and supporting projects where positive environmental impact plays a key feature in their roadmap.
Another project ahead of the curve is Ethichub. They are working directly with farming communities and investors. Using a ReFi protocol, it is revolutionising access to capital for unbanked farmers. Through its crowdlending platform, EthicHub enables these farmers to secure loans at affordable interest rates, creating a win/win situation where all parties involved reap the benefits of their interactions. Since its launch in June 2018, the platform has successfully facilitated over US$3 million in microloans.
Demonstration of data integrity and environmental monitoring
By storing environmental data on an immutable blockchain ledger, stakeholders can ensure the integrity of information related to pollution levels, biodiversity, climate change, and other crucial environmental indicators. Blockchain technology can enhance data integrity.
Combined with decentralised governance mechanisms, this is a powerful tool for ensuring sustainable decisions are maintained, and it guarantees the inclusion of a range of stakeholders. Flare Network’s state connector enables the trustless exchange of data from other blockchains, which should pave the way for enhanced collaboration when tackling issues like refi.
Another notable organisation working on climate-based blockchain solutions is BxC, a coalition of activities and industry leaders collaborating to establish principles for impactful blockchain initiatives addressing the climate crisis.
This collaborative approach can foster sustainable practices, as decentralised organisations can prioritise environmental considerations and align their activities with shared sustainability goals.
Education and awareness using the metaverse
The metaverse can serve as a powerful platform for environmental education and raising awareness. It can also act as a platform for exploring new business models. Upland, a metaverse based on real-world geography, allows entrepreneurs to test start-ups in a virtual environment through their Metaventures programme.
The metaverse offers a unique space to provide a greater understanding of complex environmental issues and inspire others to adopt more sustainable practices in the real world. Using the metaverse, we can encourage environmental responsibility.
Also Read: How to navigate the investment opportunity in climate tech sector
Using NFT technology to track climate impact
Integrating NFTs with regenerative finance can help create sustainable ways to track our actions. By embedding relevant data in each NFT, we can track the climate impact generated by the underlying project. This data can include metrics such as carbon emissions reduction.
GEIA, the Global Ecological Investment Agency, is developing Geoblocs to provide NFTs as a way for individuals to invest in sustainable farming. This platform will enable individuals to get hands-on with the green-friendly projects that they wish to support.
Another example is a project called Plastiks, a greentech company focused on revolutionising plastic recovery and recycling rates worldwide. The platform empowers companies to combat plastic pollution head-on by sponsoring the recovery of plastic waste across the globe. Using blockchain technology to meticulously track every piece of plastic, ensuring it never finds its way into a landfill.
Not only can investors track their contributions to climate-positive activities, but it also allows the everyday consumer to get involved in new incentive mechanisms to support regenerative agriculture.
There are many other ways that blockchain technology is contributing to our greener future. The tokenisation of excess energy, trading of carbon credits and supporting peer-to-peer energy sharing are three more innovations that many projects are engaged with.
Emerging technologies are allowing investors to align their values with their capital. Impact investing and funding through regenerative finance is only in its infancy but shows vast promise when considering the allocation of finance to our most precious resources.
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This article was first published on June 5, 2023
The post Celebrate World Environment Day: 4 ways blockchain and ReFi are supporting a greener future appeared first on e27.