Chain of custody of carbon credits and environmental assets
Chain of Custody of Carbon Credits and Payment for Environmental Services in Blockchain and Tokenization of Environmental Assets
PATHWAYS
.
START
February 2023
DURATION
12 months
BIOME
Cerrado
LOCATION
Brazil
STATUS
Concluded
Fintech Green Bonds Brasil's proposal to ensure transparency for carbon credits by creating a chain of custody for soy beans – from certification of origin to the sale of assets on the voluntary market – was selected to join the Sustainable Soy in the Cerrado Program(PSSC), a partnership between the Land Innovation Fund and AgTech Innovation, with strategic support from Cargill, CPQD, Embrapa and Embrapii.
Using blockchain technology, Green Bonds Brasil is developing an end-to-end traceability solution for carbon certificates on stocks of soil and native vegetation, particularly in the Cerrado, from the physical stock available on the farm to the financial asset placed on voluntary market trading desks. The chain of custody provides up-to-date information on a farm's forest assets and proof of their deforestation - free origin in compliance with requirements established by the European Union's new Deforestation Regulation (EUDR).
The fintech's proposal is to act as a third-party auditor, responsible for verifying the entire useful life of the carbon credit certificate and other environmental assets. With analyses every six months, the solution will provide more credibility for both buyers and sellers of carbon credits on the voluntary market.
Integrated solutions:
Since it joined the program, this startup has leveraged almost R$1 million in grant funding from the Startup Finance Facility and Venture CPQD, in alliance with Embrapii, to develop the solution.
The partnership with CPQD has ensured technical and financial support to develop its minimum viable product (MVP) for the back-end systems needed to make the chain of custody operational.
