Suriname is a carbon-negative country located in the northern part of South America. It is home to 600,000 people and has managed to avoid the deforestation trap of its neighbors, making it one of three carbon-negative countries in the world. This has allowed it to absorb more carbon dioxide equivalent emissions than it puts out. The country’s residents are increasingly turning to logging and deforestation, often illegal, to better their livelihoods, leading entrepreneurs to look for a solution in crypto. Projects such as BioTara aim to connect its indigenous communities with global markets through crypto, providing radical traceability and transparency by logging every step on-chain, while crypto directs the proceeds from the franchises to the communities who are often “unbankable” or financially excluded and marginalized. The concept of regenerative finance (ReFi) has been gaining traction, which involves building economic systems that revive nature instead of “degenerating” it and harming the people that live in it. This involves using technology, such as blockchain, to organize local communities and pool their resources in a governable organization, as well as creating trustworthy systems of monitoring and reporting. However, there are many obstacles to overcome, such as convincing investors to fund the projects and the lack of public crypto markets. An example of this is KlimaDAO and Toucan Protocol, which tried to turbo-charge carbon neutrality using blockchain. Despite the challenges, proponents of ReFi believe that they can make a difference in the world and rehabilitate crypto’s ever-worsening image.
The restructuring capability of blockchain and the concept of carbon credits.
Blockchain technology is being used to create a more transparent and efficient carbon credits market. The global carbon credit market...