2021 was a watershed year for corporate sustainability commitments. Almost all of the world’s leading companies have now issued a net-zero pledge. With momentum gaining behind the climate action movement, is it fair to say we’ve reached the end of the beginning?
Some of the most visible business leaders like Google’s CEO Sundar Pichai, Microsoft’s Bill Gates, and Elon Musk of Tesla Motors have all realigned their businesses and operations to net-zero emission within the next decade. Microsoft will now remove more carbon dioxide from the environment than it has emitted since its formation in 1975. Google has a similar ambition declaring ‘we do everything with the earth in mind’. The company has been net-zero since 2007 but will now go deeper and change its practices across the company with the aim to fully eradicate carbon emissions at source.
Carbon offsetting is a crucial component of many plans to rein in climate change but the route to net-zero emissions comes opportunity. Elon Musk has offered a $100 million bounty to anyone able to create a scalable carbon capture project. Meanwhile, Tesla is now a major dealer in carbon credits, due its zero emission vehicles and carbon neutral business model.
We’ve reached a seminal moment in the push for a more sustainable future. It is evident that we must transform the great majority of systems that power our everyday lives, and the flow of capital is shifting to reflect that.
Sustainable Investing is the new Normal
Globally, traditional investments are no longer considered safe, and an increasing number of institutional investors view environmental, social, and governance elements as value drivers. As a result, effective investing requires integrating these elements throughout the investment process. According to the Global Sustainable Investment Alliance, sustainable investments accounted for 35.9 percent of professionally managed assets in Asia, Australia and New Zealand, Canada, Europe and the United States at the start of 2020 — a total of $35.3 trillion, and the trend is just getting started.
Mark Carney, the former governor of the Bank of England, has put his support behind plans to establish a worldwide carbon offset market, calling it an “imperative” for assisting in the reduction of emissions. He notes that the carbon offset market has the potential to be worth 100 billion US dollars (£109 billion) a year if it can overcome its “fragmentation”. As a result we are seeing Investments in net-zero business operations and projects of high carbon offset gaining momentum in the last couple of years ushering in a sustainable investing trend.
Many businesses are legally required to offset their carbon but the voluntary carbon credit market is picking up pace as many businesses and individuals choose to go net zero. This market is now driving regenerative farming, conservation and reforestation projects as a good quality supply of carbon credits is sought to satisfy market demand.
Likvidi brings carbon credits to the crypto market
Likvidi is a sustainable finance company that aims to grow the voluntary carbon markets via blockchain-based credits. The ‘Likvidi Carbon Credit’ (LCO2) is a tokenized carbon credit that can be traded on blockchain-based exchanges thus broadening access to this exciting new asset class. By creating a liquid marketplace Likvidi aims to increase the profile of carbon offset practices and their use within the crypto industry.
Likvidi is an end-to-end solution, meaning that it sources its carbon credits direct from regenerative projects. By collaborating with select farmers and forest owners, Likvidi can ensure the quality of LCO2 is at a premium in terms of verifiable and genuinely beneficial carbon capture. LCO2 token metadata will show the token origin, lifespan and other credentials which can be viewed through the ‘Carbon Credit Scanner’. Launching in Summer this year, Likvidi is well placed to capture this growth market.