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October 28th, 2022

Blockchain for Climate Innovation

Survey Results

Nelly Maria Ramírez Moncada

May 6th, 2023

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Executive Summary (1)

This survey report provides an overview of various blockchain initiatives focused on testing scalable and innovative technologies with broad use cases. These initiatives aim to work with underserved communities, offering them alternative livelihood options. The survey respondents highlighted several challenges, including financing, product development, and regulatory navigation. Partnerships and collaborations played a crucial role in the successful implementation of blockchain for climate action, with specific government and private sector policies/initiatives contributing significantly.

The majority of surveyed blockchain initiatives rely on Ethereum, CELO, and Gnosis for their technology. Decentralized ledgers, smart contracts, digital tokens, and DAOs are among the key attributes of the blockchain technology employed. Web3 communities are prevalent within these organizations, with Discord, Telegram, and Twitter being the commonly used hosting platforms.

Blockchain technology offers various benefits over traditional methods, including enhanced security, decentralization, transparency, increased efficiency, trust, immutable records, automated processes, and interoperability. The primary objectives or impact areas of these initiatives include the voluntary carbon market and ecosystem restoration, aiming to address challenges such as access to climate finance, climate change mitigation, and adaptation.

This survey was conducted between January and March 2023 with the participation of 14 initiatives operating in emerging markets.

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Executive Summary (2)

Most initiatives have demonstrated positive impacts in underserved communities and emerging markets, supporting local economies and businesses while seeking scalability. Approximately 58% of respondents use specific frameworks to measure their impact, while others rely on Key Performance Indicators. Funding requirements for measurable impact vary among respondents.

Revenue from carbon sequestration distribution to communities or territories varies based on project and location, with uncertainty being a common response. Ease of use, decentralization, speed, and scalability are valued attributes of blockchain technology by end-users. Regulatory and legal restrictions, as well as insufficient funding, pose major challenges for adopting this technology.

Long-term growth is driven by investment financing and community building. 50% of the respondents are currently seeking investment funding, primarily between 1.5 and 3 million euros, allocated towards technological development and community expansion.

In conclusion, blockchain initiatives in the resilience landscape focus on testing scalable technology, working with underserved communities, and addressing climate-related challenges. Partnerships, government support, and private sector policies play a crucial role. Blockchain technology offers unique advantages, and while challenges exist, there is a vision for long-term growth through investment financing and community building.

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General overview

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What are the main challenges you are facing?

0

14

7

Interoperability challenges

Product readiness

Poor user experience

Lack of funding

Expensive and difficult user acquisition

Lack of knowledge of the technology and the business model of users

Regulation

Security and privacy challenges

Scalability

Trust barriers and demand signals

Time and Energy to be always raising money

The challenge is we operate in 2 worlds: the crypto as well as the affordable housing space.

Distrust for a too new technology

8

0

3

4

5

5

4

3

1

1

1

1

0

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What is the primary source of funding for your company/initiative?

Purchase of tokens or NTfs

Bank Loans

Angel Investors

Friends and Family

Impact/Catalytic Funders

Venture Capital

Web 3 Funding

Impact Catalytic Investors

High-net-worth individuals

Institutional investors

Family offices

Environmental funds

Crowdfunding investors

Donor-advised funds (DAFs)

Web 3 Fund

Accelerators

Private sales of our token

Layer 1 blockchain (could be called Web3 Funding

0

7

3

3

3

3

2

2

2

2

1

1

1

1

1

4

4

4

6

0

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What would you highlight as the

most important characteristic of your initiative?

We are testing scalable and innovative technology with extensive use cases

We are working with underserved communities and providing them with an alternative livelihood

We are sequestering a great amount of carbon

We are creating a new market

We are building trust and credibility in a new set of technologies and a new asset class

We are enabling a new for of human collaboration (DAO Builder)

We are testing scalable and innovative technology with small use cases

We are testing scalable and innovative technology with small use cases

0

14

7

12

7

3

7

1

1

1

1

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Israel

United States of America

From which country did the funds for your company/initiative primarily originate?

Does not apply for my initiative

India

Mexico

0

7

4

1

1

1

6

Spain

Borderless cryptocurrency

4

1

14

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Mozambique

Spain

From which country did the funds for your company/initiative primarily originate?

India

Kenya

Nigeria

0

7

1

South Africa

Colombia

14

None of the above

Uganda

United States

Global

Worldwide

Switzerland

5

2

1

1

1

1

1

1

1

1

1

1

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71.4%

28.6%

Are there any specific policies or initiatives from the government or private sector that have helped implement blockchain for climate action in your country or region?

Yes

No

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Are any partnerships or collaborations that have been crucial in developing and implementing your initiative?

71.4%

28.6%

Yes

No

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How many employees/collaborators are contributing to your company/initiative?

7.1%

11-50

51 - 200

50%

42.9%

1 - 10

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Which markets is your initiative currently serving?

Asía

South America

57.1%

7.1%

7.1%

7.1%

7.1%

7.1%

7.1%

7.1%

Africa

Australia

Global

North America

Europe

Others

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Understanding the Technology

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Which blockchain technology is currently in use at your organization?

  • Ethereum: 5 Answers
  • EOS: 1 Answer
  • Cardano: 2 Answers
  • Cosmos: 2 Answers
  • Polkadot: 1 Answer
  • IOTA: 1 Answer
  • CELO: 4 Answers
  • Solana: 1 Answer
  • Polygon: 3 Answers
  • Gnosis: 4 Answers
  • Other: 2 Answers

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  • Decentralised ledger: 10 Answers
  • Smart contracts: 10 Answer
  • Digital Tokens: 11 Answers
  • Cryptographic security: 2 Answers
  • Consensus mechanism: 3 Answers
  • Interoperability: 3 Answers
  • DAOs: 6 Answers
  • Privacy: 1 Answer
  • All of the above: 1 Answer
  • Putting real property chain: 1 Answer
  • Contribution accounting: 1 Answer
  • Dapp 1 Answer

What specific feature(s) of blockchain technology are you utilizing?

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Does your company/initiative have a web3 community, and if so, how many members does it have?

Yes, 15000 or more members

No, we do not have a web3 community

35.7%

Yes, 1000 or more members

21.4%

7.1%

21.4%

Yes, 100-499 members

Yes, 500-999 members

Yes, less than 100 members

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  • Discord: 28.6%
  • Multiple Channels: 21.3%
  • Telegram: 14.3%
  • Twitter: 14.3%
  • None of the above: 14.3%
  • All of the above: 7.1%

On which platform is your web3 community hosted?

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Understanding Impact

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What do you see as the added value of using blockchain technology that traditional methods would not have achieved?

Transparency

Tamper-proof records

All of the above

64.3%

14.3%

21.4%

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What is the primary focus or impact area of your initiative?

  • Voluntary carbon market: 21.8%
  • Ecosystem restoration: 14.3%
  • Ocean conservation: 7.1%
  • Poverty reduction: 7.1%
  • Climate Investment: 7.1%
  • Leverage digital infrastructure: 7.1%
  • Scaling NbS projects: 7.1%
  • Climate smart financial inclusion: 7.1%
  • DHO: 7.1%
  • All of the above: 7.1%
  • Don’t have an specific one: 7.1%

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What is the main issue or challenge related to climate that your initiative is working to address?

  • Climate change mitigation: 7 Answers (50%)
  • Climate change adaptation: 6 Answers (42.9%)
  • Lack of access to climate finance: 8 Answers (57.1%)
  • Inadequate technology for reducing emissions: 1 Answer (7.1%)
  • Ineffective climate policies: 1 Answer (7.1%)
  • Limited public awareness and education: 3 Answers (21.4%)
  • Unsatisfied customer demand for sustainable solutions: 5 Answers (35.7%)
  • Poor supply chain management and sustainability practices: 3 Answers (21.4%)
  • Climate justice and equity issues: 5 Answers (35.7%)
  • Fragmented global coordination of climate action; barriers to access climate data: Answer (7.1%)
  • Scaling climate, nature & carbon project development: Answer (7.1%)

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Does your initiative apply for any of the following (pick all that apply):

  • Have some evidence of positive impact on underserved communities and emerging markets context. 12 Answers (85.7%)

  • Pursue development within relevant legal and regulatory environments.

5 Answers (35.7%)

  • It supports local economies and businesses and seeks opportunities to include small and medium enterprises, including potential for scalability. 8 Answers (57.1%)

  • Consider how data – precisely the personal information of each use case analyzed – will be shared, stored, and protected: 5 Answers (35.7%)

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Are you using any particular framework to measure your impact?

57.1%

42.9%

Yes

No

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If you responded yes, to the previous question, please advise which framework you are using:

  • We are developing our own framework which is an improvement on GS and Verra.
  • Our custom methodology: The BasinStack which is a holistic value assessment tool and methodology for the Higher & Better Use of Real Estate.
  • EDGE / Building Resilience Index (both IFC tools).
  • Impact frameworks and impact token.
  • We are using a combination of decentralized, digital tools to measure, report, and verify impact at small scales.
  • Still very raw KPIs.
  • I’m sorry I’m not familiarized.
  • Working with projects and communities to learn how they would measure impact holistically, not how we traditionally measure impact.

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35.7%

Yes

No

Are your funders requiring any measurable impact?

28.6%

Not Applicable

35.7%

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57.1%

Less than 10%

10% to 25%

What is your estimate of the proportion of carbon sequestration revenue that goes directly to the communities and people residing on the territory?

25% to 50%

More than 50%

I am unsure, the distribution varies greatly based on the project andlocation.

14.3%

14.3%

7.1%

7.1%

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Product & Technology

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Where do you see this technology's most significant impact? Pick all that apply.

  • More efficient processes: (71.4%)

  • Greater compliance and transparency: (85.7%)

  • Enhanced trust: (78.6%)

  • Competitive advantage: (42.9%)

  • Meet customer expectations: (28.6%)

  • Reduced risks: (50%)

  • Access to alternative funding sources: (78.6%)

  • New revenue streams: (50%)

  • Greater impact: (57.1%)

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A balance of making money with impact

Which of the following do you consider to be the most highly valued attribute among your end-users?

Easy to use

Decentralization

Speed and scalability

We don’t have end users

Verification of payments and impact

Inclusion

42.9%

14.3%

14.3%

7.1%

7.1%

7.1%

7.1%

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What do you consider the primary challenge or concern in your company/organization's adoption of this technology?

Insufficient Funding

Regulatory and Legal Constraints

Interoperability with Other Platforms, Systems, and Payment Service Providers

Ee are in full adoption already

Costly User Acquisition

Poor user experience

35.7%

Limited User Awareness and Understanding

27.4%

7.1%

7.1%

7.1%

7.1%

7.1%

7.1%

The challenge is in the sector where we operate - and there the issue is trust as blockchain's utility is perceived as speculative.

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Vision & Growth

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What would be the primary driver(s) for long-term growth?

Community Building

Communications and outreach

Business Development

Software development

NA

27.4%

27.4%

7.1%

7.1%

7.1%

7.1%

7.1%

7.1%

7.1%

7.1%

Legal compliance and counseling

Tokenomics

Financial inclusion

Accelerators Network building for exponential growth

Investment funding

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What do you consider the primary challenge or concern in your company/organization's adoption of this technology?

Yes, we are seeking funding in the range of 300,000 to 800,000

Yes, we are seeking funding in the range of 1.5 million to 3 million

Yes, we are seeking funding over 3 million

No, we are not currently seeking investment funding.

Yes, we are seeking funding over 1 million

50%

14.3%

7.1%

7.1%

7.1%

7.1%

7.1%

Yes, we are seeking funding over 10 million

Yes, we are seeking funding in the range of 100,000 to 300,000.

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If you are currently seeking investment funding, in which area(s) would you consider investing the funds?

  • Technology Development: 12 Answers (85.7%)

  • Talent acquisition or retention: 6 Answers (42.9%)

  • Community building: 8 Answers (57.1%)

  • Communications and outreach: 6 Answers (42.9%)

  • Legal compliance and counseling: 7 Answers (50%)

  • Not currently seeking: 1 Answer (7.1%)

  • Scaling after successful proof of concept delivery:

1 Answer (7.1%)

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Acknowledgement

We appreciate the support of the following organizations contributions:

  • DropChain
  • Return
  • Climate Collective
  • Tolam
  • Empowa
  • Hypha
  • Gold Standard
  • EthicHub
  • ReFi DAO
  • Giveth

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