Investing in Flowcarbon | Andreessen Horowitz

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Once I was 22, I spent a number of months working within the discipline in South Africa. I used to be there as part of a analysis undertaking funded by the Nationwide Science Basis, whose goal was to raised perceive the position of that area within the international carbon cycle. The information we collected could be utilized by organizations just like the United Nations’ Intergovernmental Panel on Local weather Change to mannequin potential local weather change situations and supply suggestions for find out how to deal with a response.

We slept exterior (I used to be awoken most mornings by a monkey touchdown on the roof of my tent) and I used to be soiled and exhausted for weeks on finish. Whereas the mud and bug bites finally light, I used to be left with the sense {that a} problem of this magnitude might solely be tackled by way of know-how. 

Within the years since, consciousness of the local weather disaster has grown, and the necessity to handle it has solely change into extra urgent. Because the world begins a generational shift to cleaner sources of vitality, there’s a serious alternative to create accessible, clear carbon credit score markets that put a public worth on carbon. For this to work, it additionally occurs to require one of many areas during which web3 shines: an open, trustless market.

The carbon credit score market might doubtlessly develop to $50B by 2030*, and on-chain carbon credit might help facilitate this actuality. Bringing carbon credit on-chain provides main efficiencies to the market, enabling people and companies to internalize the price of emissions, decreasing damaging externalities which are at present socialized, and in the end incentivizing extra sustainable practices. Not like present voluntary carbon credit score marketplaces, that are fractured, opaque, and gated, tokenized carbon credit enable anybody the power to buy credit and management when they’re retired as offsets, with inbuilt liquidity and worth discovery.

Because of this we’re excited to announce that we’re investing in Flowcarbon

Co-Based by Dana Gibber, Caroline Klatt, Rebekah Neumann, Adam Neumann and Ilan Stern, and led by the powerhouse trio, Dana, Caroline, and Phil Fogel, Flowcarbon is constructing an on-chain carbon credit score tokenization platform by way of an open protocol that permits all market contributors equal entry. Anybody can come to the platform and tokenize their licensed off-chain carbon credit, unlocking a brand new financial flywheel for sustainability. Patrons can buy ERC-20 tokens backed by a bundle of licensed carbon credit issued within the final 5 years from tasks that shield and restore nature.  

On-chain carbon credit characterize an revolutionary primitive that may be built-in into the present DeFi ecosystem as a composable monetary instrument and used creatively by web3 builders to provide you with new methods to incentivize climate-positive behaviors. Flowcarbon tokens, together with its first token, Goddess Nature Token (GNT), are absolutely backed by the reside worth of off-chain credit. GNT can be utilized as collateral for lending, as an asset for protocol treasuries, as a portion of stablecoin reserves, or as an on-chain offset. 

These use circumstances can drive dormant sources of demand that additional incentivize new pipelines for provide, primarily within the type of nature-based options and clear vitality tasks. We imagine on-chain carbon credit can be a essential piece of the monetary structure wanted to rapidly facilitate a net-zero future.

Web3 continues to unlock new potentialities that would essentially change how markets function. We’re past thrilled to again Flowcarbon of their efforts to construct a brand new normal for carbon credit, accelerating our transition to a net-zero financial system.

Due to Porter Smith for his contributions to this submit and assist on the funding. 

* In accordance with McKinsey, “A Blueprint for Scaling Voluntary Carbon Markets to Meet the Local weather Problem,” https://www.mckinsey.com/business-functions/sustainability/our-insights/a-blueprint-for-scaling-voluntary-carbon-markets-to-meet-the-climate-challenge, January 21, 2021.

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