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Harnessing Decentralized Finance to Combat Climate Change: A New Era of Sustainable Finance

Video | Jul 21, 2023

Solid world website image - Harnessing Decentralized Finance to Combat Climate Change: A New Era of Sustainable Finance

Image: Solid World website

In an era where climate change poses significant threats to our planet, innovative solutions are more crucial than ever. One such solution lies in the intersection of decentralized finance (DeFi) and climate change mitigation.

DeFi is revolutionizing approaches to climate change solutions, delving into innovative financial models that promote sustainability while creating new opportunities for investment in a greener future.

Stenver Jerkku, the CEO of Solid World, is at the forefront of this revolution. With a background in urban space and venture-backed tech businesses, Jerkku is now focused on building capital markets to solve climate financing. His current venture, Solid World, aims to tackle the significant issues in the carbon industry, particularly in the voluntary carbon market which is primarily driven by investor pressure to decarbonize portfolios.

Companies are encouraged to reduce their emissions, but to become entirely carbon neutral, they often resort to carbon credits in the voluntary carbon market. These credits involve paying someone else to reduce their emissions or sequester emissions out of the atmosphere.

However, the carbon market faces significant challenges. The current market structure is nontransparent and unstructured, making it difficult for companies and investors to navigate. This lack of transparency and standards is holding back capital and preventing the market from reaching its potential.

To address these issues, Solid World is working on creating standards and transparency in the market. They have developed a risk due diligence framework for evaluating projects and are planning to open-source their underwriting methodology. Additionally, Solid World is creating liquidity pools to structure and price different types of assets, making the market more accessible and understandable for investors.

Several other companies are also contributing to this regenerative finance world. For example:

  • Toucan is working on making spot trading transparent
  • SAS Global is using AI to predict climate disasters
  • Open Forest Protocol is bringing real-time monitoring to nature restoration projects.

See:  Alternative forms of capital will be key to develop sustainable economic systems

The intersection of DeFi and climate change presents a new era of sustainable finance. By harnessing the power of DeFi, we can tackle climate change more effectively, promoting sustainability and creating new opportunities for investment in a greener future. As companies like Solid World continue to innovate and push for transparency and standards in the carbon market, we move one step closer to a sustainable future.


NCFA Jan 2018 resize - Harnessing Decentralized Finance to Combat Climate Change: A New Era of Sustainable FinanceThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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