Eco2 market
A business model idea
The recent devastating events are proof that climate change is not only happening fast, but that it is happening everywhere, affecting millions of people and most of the time vulnerable communities.
Addressing this huge challenge requires substantial effort from businesses, individuals and politicians. It's either the three of us or nothing.
Good news!
What does it mean for climate change?
These companies are either going to invest or are already investing in sustainable practices inside their factories and facilities, but to achieve a net-zero carbon target, most of them might also offset their emissions and buy carbon credits. So, there is an opportunity here.
Source: Bloomberg
Are carbon offsets equal to carbon credits?
A carbon credit is a tool that represents ownership of one metric tonne of carbon dioxide equivalent that can be traded, sold or retired or a permit which allows a country or organization to produce a certain amount of carbon emissions and which can be traded if the full allowance is not used.
Therefore, a carbon offset typically produces a carbon credit when it originates from a project certified by a third-party.
Since this market is still not regulated worldwide yet , they are part of the VCM (Voluntary Carbon Market) that is quite complex and fragmented.
Seamless transactions
Six key features that aim to democratize the carbon offset market.
Business model
The proposed business model involves charging a fee per transaction for projects on the platform. The percentage charged may vary depending on the type of project, ranging from 5% to 8%. According to Ernst & Young (EY) Net Zero Centre analysis, the price per tonne will raise up to $150 by 2035.
Suppliers, individuals and companies will able to:
Sell carbon offset credits through asset-backed tokens and third party quantifies and verifies their carbon credits.
Suppliers
Buy tokenized carbon credits, track what they purchase in real time and calculate their carbon footprint
Individuals and companies
