Community wants to have 40% of the reserve in natural assets. Photo: TNeto, Pixabay.
The Celo community launched, this Wednesday (6), the Climate Collective, an initiative that includes tokens from tropical forests and other carbon offsetting assets in its backlog of stablecoins Celo Dollar and Celo Euro. The action started with the purchase of carbon credit tokens from the Brazilian Moss.Earth.
Celo’s plan is that over the next four years, up to 40% of its reserves will come from tropical forest tokens and carbon sequestration. Celo currently has the equivalent of US$ 850 million in reserves. The amount who bought from Moss is equivalent to 0.5% of Celo’s reserves, in other words, US$ 4.5 million.
“A lot of rainforest the size of Lebanon costs US$25 million in the Amazon. This means that, given the current size of our reserve, 40% of it could be backed by around 135 million large trees in the forest”, released the Celo Foundation.
With this, the community tries to insert in its reserve natural assets as backing to the Celo platform, aligning this with the fact that it is negative in terms of carbon emissions. Celo already buys carbon credits from Wren Project to offset its emissions. The initiative includes ten companies in the launch. In addition to Moss, there are Curve Labs, Kolektivo and Regen Network.
According to Celo, the approximately 13 million trees could sequester around 43 megatons of CO2 a year. This would be 0.43% of the Intergovernmental Panel on Climate Change (IPCC) goal. “And if Celo Dollar and Celo Euro grow to the point of being the size of the USDC, we would reach 16% of the IPCC target.”