Flowcarbon, a New York-based climate technology company, is collaborating with Centrifuge, a well-established DeFi (decentralised finance) platform, to launch the carbon financing initiative and grow the voluntary carbon market (VCM).
Twin lake, a digital asset marketplace, and the DeFi protocol of Centrifuge will launch pools to allow project developers to bring about extra costs and sufficient pre-issuance finance that will overcome the frequent financial bottleneck they face. Carbon projects will be increasingly diverse in terms of finance sources, as well as the expansion of the on-chain carbon credit economy.
According to Flowcarbon’s Chief Blockchain Strategist Phill Fogel, Centrifuge connects various assets such as real estate, royalties, and invoicing to DeFi. It is a leader in creating assets in the supply chain. Flowcarbon’s collaboration with Centrifuge will assist in the creation of the first pool, which will incorporate Centrifuge’s natural asset contracts. The two firms will scale investors’ access to project financing, resulting in a planet-saving impact that will further democratise access to natural assets.
Carbon project developers often face a financial gap since revenue from carbon credits is typically obtained only after carbon credits are sold. The time span might range from 2 to 10 years from the start of a project. Bridging this financial gap would require much more than merely removing market inefficiencies, which is critical and must be addressed immediately.
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