This article was originally published on BAI.
“We are at the cusp of a revolution, powered by exponential technologies. Doubling every two years, solar will dominate the energy landscape in next decade. On a similar growth path, we await a world of abundance with AI, Robotics, Nanotechnology, Biotechnology, and Blockchain.
We face one exponentially growing threat, however: a climate crisis. Goldman’s former top risk manager Bob Litterman warns that markets have underpriced climate risk, and calls for a high price on carbon.
A root cause of our crisis is our failure to value natural capital. Natural capital is the value living ecosystems like rainforests and coral reefs provide to humans. Once abundant, natural capital has eroded precipitously due to unpriced “externalities,” such as carbon emissions.
To be sustainable, we must include natural capital in our accounting, and embed the cost of negative externalities in consumption. If we act decisively, the cost could be as low as 1% of consumption. If not, we face potential losses of 5% of GDP per annum.
How can blockchain help? Blockchain technology can be used to protect critical ecosystems by democratizing investment in natural capital, and integrating payment for ecosystems services into our global accounting systems.
Let us focus on the most vital ecosystems services first: oceanic Blue Carbon is responsible 83% of global carbon sequestration, with 50% concentrated on shorelines. Mangrove forests play a keystone role in Blue Carbon sequestration by filtering water to allow sea grasses and coral reefs to thrive. Sadly, rampant deforestation of mangroves threatens the health of coastal ecosystems which are vital to Blue Carbon sequestration and marine biodiversity…”
Read on at: BAI.