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.
“We are working directly with partners on the initial forward contract lending pool, and are already receiving considerable interest from project developers looking to participate when we open it up more widely” Dana Gibber, CEO of Flowcarbon said.
“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,” Phil Fogel, Chief Blockchain Strategist, at Flowcarbon said.
“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,” he added.
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 said.
“I am truly excited about this partnership. From the early days of Centrifuge, it was always our goal to release trapped liquidity in order to enable growth and therefore allow companies, projects and individuals to achieve their goals faster,” Maex Ament, Co-Founder at Centrifuge said.
“Using the Centrifuge protocol now to provide much needed capital and funding to projects in the voluntary carbon market is the perfect use case. This partnership will inject liquidity at the earliest stages of projects that reduce or remove carbon emissions, like conservation and reforestation, at a time when it is almost impossible to source through traditional means. At the same time, the Centrifuge protocol will allow anyone to invest into pools holding carbon futures, making it possible for them to back an asset class they believe in and can get behind,” he added.
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.
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.
On the other side an issuer can tokenize these assets to access instant, bankless liquidity. By providing the DeFi platform for credit financing, Centrifuge addresses both the volatility and stability concerns typically found in crypto. Centrifuge brings stable credit financing to DeFi and enables more transparency & lower cost of capital to everyone globally.
