Pivoting to play a critical part in accelerating climate finance

Being in the launchpad business since 2021, we have worked with over 80 projects across gaming, entertainment, metaverse, Artificial intelligence and Infrastructure. Some hugely successful others not so much!

The extended bear market, in all its brutality has led a lot of projects to an inflection point, "What is the true purpose of our existence?"

While we all continue to wait for the crypto sun to shine bright again, alot of good projects have continued to build and augment their offerings. There are also several large brands experimenting with elements of Web3 such as Starbucks, Nike, Etihad Airways etc.

This inflection point led team Enjinstarter towards two conscious decisions:

  1. Becoming a regulated launchpad
  2. Finding the next megatrend

While, we can discuss the merits and demerits of becoming a regulated when literally none of our competition has any interest in doing so, I want to focus on the importance of the megatrend in this article!

The focus on impact and sustainability is not merely a distant aspiration but an urgent imperative driven by alarming numbers and figures that underscore the severity of our current global challenges. Several pressing reasons demand immediate action to address these issues:

Climate Crisis: The Earth's climate is rapidly warming due to greenhouse gas emissions, primarily from human activities such as burning fossil fuels and deforestation. According to the Intergovernmental Panel on Climate Change (IPCC), global temperatures have already risen by approximately 1.1°C above pre-industrial levels, and we are on track to exceed the critical threshold of 1.5°C by as early as 2030. This will lead to more frequent and severe extreme weather events, rising sea levels, and significant disruptions to ecosystems and food systems.

Biodiversity Loss: The planet is experiencing an unprecedented loss of biodiversity, with species extinction rates estimated to be up to 1,000 times higher than natural background rates. The World Wildlife Fund's Living Planet Report indicates that global wildlife populations have declined by 68% on average between 1970 and 2016. This loss of biodiversity poses significant risks to ecosystems' resilience, food security, and human well-being.

Social Inequity: The disparities between the rich and the poor continue to widen, exacerbating social inequality across the globe. Oxfam's reports reveal that the world's wealthiest 1% own more than twice as much wealth as the poorest 6.9 billion people combined. Such inequity hampers progress towards achieving the United Nations Sustainable Development Goals (SDGs) and threatens social cohesion and stability.

Resource Depletion: The rate of natural resource consumption is unsustainable, leading to water scarcity, soil degradation, and depletion of non-renewable resources. For instance, the Global Footprint Network estimates that humanity is currently using 1.7 times the Earth's regenerative capacity, effectively consuming resources faster than the planet can replenish them.

Waste Generation: The generation of waste and its improper disposal pose significant environmental and health hazards. The World Bank reports that global municipal solid waste generation is expected to rise from 2.01 billion tons in 2016 to 3.40 billion tons by 2050, exacerbating pollution and contributing to the degradation of ecosystems.

Water Stress: The growing global population and increasing demand for water-intensive activities strain freshwater resources. The United Nations estimates that by 2030, nearly half of the world's population will be living in areas with high water stress, potentially leading to conflicts and humanitarian crises.

Health and Well-being: Environmental degradation and social inequality have direct and indirect impacts on human health and well-being. The World Health Organization (WHO) attributes approximately 13% of global deaths to environmental risks, and vulnerable populations, such as children and marginalized communities, are disproportionately affected.

Drumroll.... enter Climate finance

While there have been concerted efforts from governments, international organisations, and private sector actors to mobilise climate finance, a significant gap remains between the funding needed and the actual funds available currently estimated at over US$ 3 trillion.

US$ 3trillion!!! There are only 7 countries in the world with a GDP of US$ 3 trillion!

We at Enjinstarter feel that web3 and blockchain can play a significant role in accelerating the funding needs for impact projects, even if it is a small difference to that overall US$3 trillion requirements.

And how do we envision it happening?

Web3 investing & crowdfunding: Traditional climate finance opportunities have been largely inaccessible to retail investors, due to the high minimum investment amounts and complex investment structures. Web3 crowdfunding lowers the barriers to entry for retail investors by allowing them to invest in small amounts and by providing more transparent and user-friendly investment vehicles

Tokenization of carbon credits:  Bringing carbon credits on the blockchain to create asset backed tokens for projects creating improved financing opportunities and democratising access to carbon credits down to the retail market at the same time to create improved liquidity in carbon trading.

Pipeline of Carbon credits:  Creating financing opportunities for Impact projects will create the opportunity to build a pipeline of carbon credits that can be sold to individuals & corporations who require carbon credits to offset their carbon footprint or traded on carbon exchanges to sell in the secondary markets.

Measurement & Reporting:  Due to the transparent nature of the blockchain measuring, reporting and tracking becomes easier and more cost efficient. Such tools for impact will allow users to understand the impact their investments have created and the role they have played in helping tackle climate action.

Education & Awareness:  While climate action is in the news everyday, people do not understand clearly the role they can play to help reduce their carbon footprint. By creating a series of initiatives, where thought leaders and the masses can participate to better understand the urgency around climate change and the role they can play. We will also launch a series of social impact initiatives to work with partners across the globe to create a “phygital” experience allowing users to contribute to real-world solutions that help the planet.

Join us as we embark on this journey, to bring a purpose to web3 and give back to our planet.