New technology to significantly reduce emissions
CPG Capital and Machina, in collaboration with Chainlink, have designed a smart contract enabled platform as an innovative fintech solution to address the three green finance problems put forth by the BIS Innovation Hub and the G20. Together, we have achieved a comprehensive and scalable approach to data collection, verification and sharing; a way to collect important data for the analysis and assessment of transition and physical climate related risks; and a technical means by which to improve connectivity between investors and financed projects for green impact reporting.
The first use case of this green fintech platform will address agricultural related GHG and NH3 emissions in collaboration with SOP, an Italian technology company with a unique ability to interact with physical, chemical, and biological systems to improve the performance and efficiency of natural systems. SOP has created a suite of technical applications capable of reducing all three primary GHG emissions, as well as ammonia emissions, at source in food systems. SOP has also achieved ISO certification for these emissions management impacts that enable alignment with ESG ratings and UN SDG targets, thereby enabling the CPG-Machina-Chainlink platform in the future to offer a fintech approach that solves for green impact reporting on an ISO certifed basis, rather than a self- reporting basis, for agribusiness supply chains.
Our approach is a combination of emission-reducing technology, real-time data collection and analytics, and actionable data sharing and reporting through smart contracts. CPG- Machina, working with SOP, have put together a global model to assist with emerging regulation and enforcement of SDG alignment and to streamline all the related datasets via blockchain enabled smart contracts to any parties interested in real world GHG emissions reporting on a timely basis.
The emission reductions achieved at source in agricultural production cover both carbon cycle (-20% or more CO2 and -30% or more CH4) and nitrogen cycle (-100% N2O and -100% NH3), and would be relevant for reporting and monitoring to several distinct parties within agribusiness and supply chains, such as policymakers, regulators, financial services firms, insurance, as well as food brands, commodity trading, farmer organisations, all of which are seeking scalable and cost effective methods for broader climate action.
Together, CPG, Machina, and SOP are working together to showcase high impact, low cost, scalable solutions to mitigate IPCC Scope 3 emissions at source in global agribusiness supply chains using smart contracts and blockchain to create tamper-proof systems that can lead to improved ESG ratings, certified SDG alignment, lower GHG emissions, and additional value layers via Chainlink for digital finance.