Carbon Sequestration, Credits & Token
Benchy#3 -> All about Carbon rescue, Sustainability, Green Economy, Climate Action and Emission Reduction.
CLIMATE CHANGE
It's the end of January and never before has our planet and this topic been this hot. Disasters keep piling up, and the culprits are ourselves—through climate change. From the 2024 floods in Brazil1 to the US fires in 2024/252, it’s undeniable that this is an urgent crisis, and we need to act.
According to recent reports, 2024 has been declared the hottest year in recorded history3, surpassing the critical 1.5 degrees Celsius above pre-industrial levels. The future consequences are severe: food production can fall by 50%, more frequent natural disasters, uninhabitable tropical zones and the acidification of the oceans in conjunction with the rising sea levels which can wipe entire cities from the map.
Within the World economics forum 2024 risks report4, environmental concerns feature second in the list for the next 2 years (Only behind misinformation and disinformation) and if we look ahead for the next 10 years it's all we are going to talk about.
Not only the World Economic Forum but also the OECD5 [Organisation for Economic Co-operation and Development] are talking about climate change. These organizations, closely linked to economics, help break the misconception that environmental issues have little impact on finances—they do, and in a significant way.
Given the urgency to act, how green economy works? which products, services, and brands are making a difference, and what actions are they taking? By the end of this edition, the goal is to inspire actions that can help shape a better future.
OFFSETTING CARBON EMISSIONS
It's hard to jump into services and products without an overview of the problem and some explanation of the current scenery, so to be practical [and to stop me from writing a novel—I love to talk, and I love to write] the idea is to narrow down the conversation to emission reduction and sustainable finance.
Which is why the focus will be on 3 concepts: CARBON SEQUESTRATION, CARBON CREDITS and CARBON TOKENS.
‼️🚨‼️ AN IMPORTANT NOTE: offsetting carbon is only part of how to help, we have to keep our minds broad and think real progress requires both reduction [trough education and our own actions] and offsetting.
1- CARBON SEQUESTRATION →
This is where it all starts. The need to remove carbon from the atmosphere is critical, and there are several ways companies make it happen:
NATURAL/BIOLOGICAL: Through natural processes such as oceans, soil, geological formations, and forests—each harnessing nature’s ability to absorb carbon in different ways from nature itself.
As an example InPlanet6 is a startup operating in Brazil that utilizes rock weathering, a natural process that combines technological innovation with soil biology to capture carbon. This approach not only enhances soil fertility but also improves agricultural yields, leading to better crop production. According to their site, this is how it works:
Rock weathering is a natural process that gradually removes CO₂ from the atmosphere on timescales of hundreds of thousands to millions of years. As part of nature’s portfolio of carbon removal mechanisms, rock weathering has regulated the Earth’s temperature throughout geological history and maintained the habitability of the planet. Moreover, the supply of nutrients and ions from rocks has been essential for the evolution and sustenance of life on land and in the ocean.
ARTIFICIAL: There are several methods that goes from artificially capturing to storing, and reusing CO₂ from the atmosphere or its emitting sources. Different technologies are available and there is a huge space of new start ups working on this. Some examples of artificial capture include:
→ CCS [Carbon Capture and Storage]: CO₂ is captured right before its emission and then injected into subterranean geological formations, such as depleted gas or petroleum reservoirs. It is mainly used by large industries like cement and energy.
→ CCU [Carbon Capture and Utilization]: Similar to the above, CO₂ is captured and subsequently transformed into products like plastic, synthetic fuel, and even concrete.
→ DAC [Direct Air Capture]: Machines pull CO₂ directly from the atmosphere using chemical processes. The captured carbon can then be stored underground or reused in various industries as CCS and CCU.
To give an example Carbon Cure7 is a start up that injects CO₂ within concrete making it more resistant, while also selling it's Carbon credits.
Another company is Seabound8, a start up supported by the UK government, works by capturing carbon emissions directly from large cargo ships, helping decarbonize maritime transport.
Lastly we have Climeworks9, a company founded in Switzerland. Their work involves creating facilities that extract carbon directly from the air. Below is a picture of their Orca plant, located in Iceland, which is the largest direct air capture (DAC) facility in the world.
2 - CARBON CREDITS →
Whenever 1 ton of CO₂ is mitigated, a certificate is generated. These certificates are issued by projects that carry out carbon reduction or sequestration actions.
For example, a soil sequestration project that implements cover crop farming can generate carbon credits and sell them to companies looking to offset their emissions. This can occur under government-regulated frameworks or through voluntary markets where companies purchase credits on their own initiative.
After companies achieve their impact, they can certify their carbon credits through services like Gold Standards10 or Verra11, which issues Verified Carbon Standards, ensuring the credits meet high-quality standards and are transparently tracked. These verified credits can then be traded or retired, supporting the global effort to mitigate climate change.
3- CARBON TOKENS →
If carbon credits are tokenized, they become digital assets—called carbon tokens12— one carbon credit equals one carbon token.
To understand this, we need to talk about blockchains. Simply put, blockchains are a technology that allows secure tracing of transactions from their beginning to their end, as they maintain a permanent record of all previous transactions.
It’s like spending 3 dollars on a coffee and being able to trace the entire history of where those 3 dollars came from—where you got it—up to where they go next. [That’s why auditors and finance professionals love it! There’s no way to hide any blockchain transaction, as they are traceable, secure and it's record cannot be broken, hacked or whatever, so 100% secure.]
And guess what? This is AMAZING for the green economy. Why? Because it's verifiable and trustworthy, making green trading easier and enabling:
No intermediaries: The absence of intermediaries makes direct transactions faster, cheaper and trusty worthy, reducing fraud risk.
Global access: Anyone in the world can easily buy a carbon token.
Fractional ownership: You can buy just a portion of a token, making it accessible for everyone.
Increased liquidity: These credits can be bought and sold anytime, without relying on complex contracts or lengthy negotiations.
Better financing: Developers can secure funding through pre-purchase agreements, selling carbon tokens at a lower price upfront to finance their projects.
The final and most important understanding is: once you buy one, the action to offset it's carbon footprint is to retire it [also known as burn]. By doing so, it proves that you’ve consumed the "carbon print" and effectively removed it from the world.
The goal should be to purchase as many carbon tokens as possible and “retire” them—actively contributing to mitigating global warming and driving the green economy forward.
The more companies work to generate carbon credits that can be tokenized and eliminated, the stronger and more sustainable the cycle becomes. This is the beauty of the green economy: a continuous loop of action and impact. More about Carbon Tokens can be found here at Toucan13
A YOUNG USER JOURNEY
This is a young and evolving market. Different countries are actively working to address the climate crisis, leading to increased investments, the emergence of numerous new companies, and, simply put, making the user journey a challenging experience.
The landscape is incredibly diverse, with solutions varying widely. However, there is a stronger focus on B2B, driven by specific regulations, tax incentives, and international agreements like the Paris Agreement, which collectively fuel the growth of the green market in this space.
At the same time, decentralization adds complexity for consumers trying to make informed choices. Navigating the green market often requires significant research, as these topics remain difficult to simplify for the general public. This gap in accessible information highlights the need for broader education before a mature D2C market can realistically emerge.
Even as cryptocurrencies gain mainstream attention, the user experience of purchasing carbon tokens on blockchain platforms and cryptocurrency exchanges remains far from intuitive—unlike the simplicity of signing up for a streaming service.
So if that is the challenge…
I WANT TO HELP: WHERE AND HOW TO START?
To simplify the process and take the mystery out of navigating the green economy, here are some actionable steps to begin your journey:
GO LOCAL
Research topics, projects, and solutions that are closer to your region or country.
Look into local environmental initiatives, such as community reforestation projects, renewable energy developments, or sustainability-focused startups.
FOCUS ON THE BASICS
Familiarize yourself with key concepts like the ones we went trough: carbon sequestration, carbon credits and carbon tokens.
LOOK FOR VERIFIED PROJECTS
EXPLORE
Look for reputable platforms that simplify participation in the green economy:
For carbon offsets, explore marketplaces like Moss16, a Brazilian platform that offers carbon tokens (MCO2), another broad and easier way to work with tokens is by going to the carbonmark17
For the finance savy there is also KlimaDAO18 which has a different proposal to make Carbon tokens more valuable and by doing so attracting more people to it.
Some crypto exchanges and fintechs like Bitybank19 [Brazil only] also provide Carbon Tokens like Ambify (ABFY)20, which hosts projects validate by Verra, so if crypto is already your language, looking for Carbon offsets in your current Crypto exchange is also a solution
CHALLENGES ARE EVERYWHERE
[I promised not to write a novel, but…], it’s important to acknowledge some valid criticisms of this system of offsetting carbon emissions.
For example, some companies use offsets as a loophole—continuing harmful practices, like chopping down a forest, and then buying carbon credits to claim they are "clean" simply because they’ve offset what they’ve just destroyed. This shows why we need to approach offsets with caution.
We must also ensure that carbon offsets are validated and real. If a carbon token is based on projects that don’t genuinely reduce or remove CO₂ or if the company behind it is cutting corners, the token loses its true value and impact. Which brings more into the challenges products and services have on this account.
Lastly, offsetting is good, but it won't solve the problem on its own—we need to educate ourselves on how to mitigate our own emissions.
Just by breathing we generate more than 1Kg of carbon daily, in average considering different emissions in our every day lives, from Electricity to traveling by planes a human will generate between 4-5 tons of carbon per year [Although estimations change dramatically based in the country you live in]
There are several carbon calculators available online, most of which help you understand your carbon footprint and provide insights on how to reduce it. This can be achieved not only by buying carbon credits but also by adjusting your lifestyle, which is already a meaningful way to contribute.
MOVING FORWARD
To finish and inspire, just wanted to share a personal favorite. If you haven't seen, The Salt of the Earth is an amazing documentary that talks about Sebastião Salgado [a famous Brazilian photographer]. What he did is amazing in several ways, won't spoil much more than that, but guarantee the inspiration by watching this one and connecting with the earth in other ways. Also check the Terra institute site21 for news about Sebastião's environmental work, and donate if you can. 🌲 🌳
Lastly, Do you contribute or know any green services out there? we would love to hear from you. Write to us! We want to expand our thinking!
🗓️ NEXT MONTH: The first month of the year ended! In February, we will focus on blockchain projects through digital art and NFTs. What’s happening in this market? Is it still active? What trends are shaping its future? Let’s find out what’s going on in the NFT space.
👣 FOOT NOTES: There is always more to read, here some of the content mentioned through out this article if you want to expand your knowledge.