Flowcarbon Partnership With Centrifuge
New York based climate tech company, flowcarbon, is entering into a long-term, collaborative partnership with leading Defi platform Centrifuge to unlock carbon project finance and scale the voluntary carbon market (VCM).
flowcarbon will structure a pool of forward contracts – Emission Reduction/Removal Purchase Agreements from new carbon projects. These pools will launch on Centrifuge’s Tinlake, the open DeFi protocol and Real-World Asset marketplace.
This will enable project developers to raise more cost effective funding pre-issuance, solving the financial bottleneck they often face. It also means carbon projects will have a more diversified source of funding and further development of the carbon credits ecosystem on-chain.
“Centrifuge is a pioneer in bringing real-world assets on-chain. At flowcarbon, we are delighted to be partnering with them to create the first pool of natural asset contracts on Centrifuge. Together, we are scaling the access to capital of projects with planet-saving impact, by further democratizing access to natural assets. Carbon project developers usually face a funding deficit as the income from carbon credits is typically received only upon delivery (sale) of carbon credits. This can be 2 to 10 years after the project start date. Closing this finance gap is about more than just solving a market inefficiency; it’s absolutely essential to tackling the biggest challenge we face. Nature-Based Solutions (NbS) can contribute up to 30% of the solution to climate change, and include many of the most cost-effective, scalable and immediate answers to climate change we have,”— Phil Fogel, Chief Blockchain Strategist, at flowcarbon
Of the $133 billion that currently flows into NbS annually, public funds represent 86% and private finance only 14%, the partnership aims to increase the latter by closing a main funding bottleneck.
“flowcarbon and Centrifuge share the vision that open, permission-less blockchain technology can provide a level playing field that is transparent and censorship-resistant. We’re proud to support the global reduction of carbon emissions by unlocking a whole new level of growth and scalability for local financial communities.” —Martin Quensel, Co-founder at Centrifuge
ABOUT flowcarbon
flowcarbon is a pioneering climate tech company bringing carbon offsets onto the blockchain. Its mission is to make carbon markets accessible and transparent, enabling billions of dollars to be invested directly into projects that combat climate change. Founded by a team of experienced entrepreneurs with collective expertise in carbon, sustainability, and blockchain technology, and backed by some of the biggest investors in the world, flowcarbon is committed to driving real impact for people, biodiversity, and the planet.
ABOUT Centrifuge
Centrifuge is a platform that connects real-world assets to decentralized finance (DeFi). Through our decentralized application, investors have the opportunity to earn yield by investing in a Tinlake Pool, a structured credit investment vehicle, composed of tokenized representations of real-world assets, any physical asset that has a unique value.
RESOURCES
Flowcarbon Blog
