flowcarbon, a climate tech firm based in New York, is partnering with Centrifuge, a well-established DeFi (decentralized finance) platform, to unleash the carbon finance project and scale the voluntary carbon market (VCM). Pools of forwarding contracts will be structured by flowcarbon – (Emission Reduction or Removal Purchase Agreements) from the new carbon finance projects.
Twin lake, a real-world digital asset marketplace, and the DeFi protocol of Centrifuge will launch these pools, allowing project developers to bring about additional cost adequate pre-issuance funding that will solve the frequent financial bottleneck they face. The carbon projects will be more diversified in terms of funding sources and additional development of the on-chain carbon credit ecosystem.
According to Chief Blockchain Strategist of flowcarbon, Phill Fogel, Centrifuge bridges different assets such as real estate, royalties, and invoices to DeFi. It is a leader in bringing assets into the chain. Flowcarbon’s partnership with Centrifuge will help create the first pool that includes Centrifuge’s natural asset contracts. The two companies will scale the access for investors to the projects’ capital with a planet-saving effect that will further democratize access to the natural assets.
Developers of carbon projects usually observe a deficit in their funding as revenues from the carbon credits are generally received only after carbon credits sale. The period can be anywhere between 2–10 years after a project has started. Bridging this financial gap will require much more than simply eliminating the market inefficiencies, and this is essential and needs to be tackled immediately.
NbS or Nature-Based Solutions can potentially contribute 30% of its solutions to climate change, and it includes many cost-effective, immediate, and scalable answers that people have regarding climate change.
Currently, $133 billion flows into Nature-Based Solutions annually, out of which public funds constitute 86%, whereas private finance constitutes 14% only. This partnership will increase the private finance contribution by closing the critical funding bottleneck.
Centrifuge and flowcarbon share a similar vision that permission-less and open blockchain technology provides and that is censorship-resistant and transparent. The two companies support the reduction of global carbon emissions, and it plans to unlock a new level of scalability and growth for the financial communities locally.
flowcarbon has developed as a leading climate tech company that brings carbon offsets into the blockchain. The main objective of flowcarbon is to make carbon markets transparent and accessible for all and allow people to invest millions of dollars directly into carbon projects that help in combating climate change. flowcarbon development team includes experienced entrepreneurs who have required expertise in matters like sustainability, carbon, as well as blockchain technology. The team is supported by high-volume investors around the world, and it aims to drive a real impact on biodiversity, people, and the Earth, on the whole.
Centrifuge is a DeFi platform connecting real-world assets to DeFi. Through the DeFi application, investors from around the world get a chance to earn by making investments in Tinlake, which is a structured credit vehicle made of tokens of real-world assets, physical assets having unique value.
Issuers can tokenize assets and gain access to bankless and instant liquidity. The DeFi platform provides credit financing and addresses stability and volatility concerns generally available in cryptocurrency. Centrifuge offers stable credit finance and allows lower capital costs and more transparency to all its users around the world.