Connect with us

Banking Technology

Why we need to persuade Governments to tokenise the world’s forests

Avatar

Published

on

It is difficult to watch the apocalyptic fires that continue to ravage Australia. I was particularly struck last week by a photograph in the press of a silhouetted kangaroo against a bright orange wall of flames in Conjola on the New South Wales coast.

Tokenisation is a new innovative mechanism for sustainable financing.

Approximately 500 million animals are reported to have perished as a result of the crisis. It’s heart-breaking.

I find the growing length and severity of global wildfires concerning. Natural wildfires are common and have been part of the earth’s ecosystem since there was plant material to burn. Millions of acres of land burn every year.

But man-made mass destruction of trees and woodlands, particularly through burning, is exacerbating the situation further.

Swedish climate activist Greta Thunberg made an interesting short film in September 2019 to coincide with her speech at the UN Climate Action Summit. It highlighted how nature, specifically trees, is a tool to fix our broken climate. How trees are a major part of the answer to our climate emergency.

Today, forests account for around 30% of land worldwide. But they are disappearing at an alarming rate. According to the World Bank, between 1990 and 2016, the world lost 1.3 million square kilometres of forest. An area larger than South Africa.

The WWF estimates that 27% of the Amazon will be without trees by 2030 if the current rate of deforestation continues. The Amazon, the ‘lungs of the world’, is the biggest deforestation front globally with scientists arguing that urgent intervention is needed to prevent a large-scale, irreversible ecological disaster.

Advertisement

The question is, what can the financial services and fintech industry do to help?

Green finance, sustainable finance, ESG investing; whatever your term of preference, it is a fast-growing sector. But investor choice is limited; green bonds, green funds, sustainability loans, to name just a few; and are only open to institutional investors.

What about the person on the street who wants to have the opportunity to play their part in saving the planet?

The answer lies with blockchain technology. We need to tokenise the world’s trees.

Tokenisation is a new innovative mechanism for sustainable financing which can be made available to all types of investors.

Tokenising a forest enables fractional ownership of institutional-grade investment opportunities, available to investors via an unprecedently low buy-in.

A level more accessible to the general public. Imagine being able to own the equivalent of one square metre of a forest and have the option to trade that token on an exchange, if you wanted to.

Is there appetite for this? Yes. You only have to look at the overwhelming success of social media campaign #TeamTrees by YouTubers MrBeast and Mark Rober. They recently smashed their goal to raise $20 million in less than two months to help the Arbor Day Foundation plant 20 million trees in ‘a forest of high need around the globe’.

Advertisement

A rapidly growing number of people are concerned about their personal carbon footprint and want to make changes to their lifestyle to reduce it.

Through tokenising forests and other natural areas, the public would have the optionality to offset their carbon footprint – from driving to flying– by investing in tokenised forests or renewable energy projects.

In some ways this would be similar in concept to that of British Airways which this month became the first UK airline to offset carbon emissions on all its flights within the UK and invested in carbon reduction projects around the world. Only with greater choice and personal control over where your money goes.

Tokenisation presents a powerful opportunity for forest/natural area landowners, investors and Governments worldwide.

  1. It unlocks access to previously unavailable capital adding liquidity to the financial system.
  2. It provides new opportunities for investors – large and small – to invest in ESG investing initiatives, and;
  3. It can help Governments achieve their climate change targets. The European Union, for example, in its new European Green Deal last month, set a target for the continent to halve carbon emissions by 2030 and be carbon neutral by 2050.

Science is telling us we are running out of time to save our planet. We need to act now, while we still can. Everything we do, large or small, can help to make a difference.

We need to persuade Governments and private landowners to tokenise the world’s forests.

By Louisa Bartoszek, head of communications, 20|30 Group and Mozaic Markets

Advertisement
Advertisement Submit

TechAnnouncer On Facebook

Advertisement
A Review of the Shure SM7B Microphone A Review of the Shure SM7B Microphone
Tech Reviews2 days ago

Unleashing the Power of Sound: A Review of the Shure SM7B Microphone

The Shure SM7B microphone has made waves in the audio world, becoming a favorite among podcasters, musicians, and broadcasters alike....

Pocket Cinema Camera 6K Pro Pocket Cinema Camera 6K Pro
Tech Gadgets2 days ago

Capturing Magic: A Review of the Blackmagic Pocket Cinema Camera 6K Pro

The Blackmagic Pocket Cinema Camera 6K Pro is a game-changer for filmmakers and content creators. With its impressive features and...

Apple 2023 MacBook Air Apple 2023 MacBook Air
Tech Reviews2 days ago

Unleashing Power: A Review of the Apple 2023 MacBook Air with M2 Chip

The Apple 2023 MacBook Air with M2 chip is a sleek and powerful laptop that has captured the attention of...

BTC staking campaign BTC staking campaign
Bitcoin5 days ago

Exploring pSTAKE’s edge within Binance’s latest BTC staking campaign

Recently, Binance launched its latest BTC Staking on Babylon Campaign, inviting users to participate in an exciting opportunity to earn...

The 2022 Apple MacBook Air with M2 chip The 2022 Apple MacBook Air with M2 chip
Electronics5 days ago

Apple MacBook Air: A Student’s Best Friend

The 2022 Apple MacBook Air with M2 chip has quickly become a favorite among students and professionals alike. With its...

DJI Avata 2 DJI Avata 2
Drones Technology5 days ago

Experience the Sky Like Never Before with the DJI Avata 2

Flying the DJI Avata 2 Fly More Combo is an exhilarating experience that takes you to new heights. This FPV...

Sony Alpha 7 IV: A Comprehensive Review Sony Alpha 7 IV: A Comprehensive Review
Tech Reviews6 days ago

Unleashing Creativity with the Sony Alpha 7 IV: A Comprehensive Review

The Sony Alpha 7 IV is a remarkable camera that has captured the attention of both amateur and professional photographers...

Market Turmoil: Iran's Missile Attack on Israel Sends Stocks Down Market Turmoil: Iran's Missile Attack on Israel Sends Stocks Down
Trending Technology7 days ago

Market Turmoil: Iran’s Missile Attack on Israel Sends Stocks Down

U.S. stock markets experienced a significant downturn on October 1, 2024, following Iran’s missile strikes on Israel, which escalated geopolitical...

Tesla Stock Tesla Stock
Trending Technology7 days ago

Tesla Stock Slips After EV Maker Misses Estimates on Deliveries

Tesla Inc. faced a significant setback as its stock price dropped over 6% following the announcement of its third-quarter vehicle...

Chinese Stocks Surge Over 7% in Hong Kong Amid Stimulus Optimism Chinese Stocks Surge Over 7% in Hong Kong Amid Stimulus Optimism
Trending Technology7 days ago

Chinese Stocks Surge Over 7% in Hong Kong Amid Stimulus Optimism

Chinese stocks listed in Hong Kong experienced a remarkable surge, climbing more than 7% as traders returned from the National...

Advertisement
Advertisement Submit

Trending

Pin It on Pinterest

Share This