A blockchain-based biodiversity credit partnership between three companies has secured a small project area in Costa Rica, they announced Thursday.
Conservation monitoring NGO Fundecor, financial technology platform Biota Nexus, and cryptocurrency specialist Blockchain Jungle said they have protected an area of 62,500 square metres in the north of the Central American country.
The scheme uses biodiversity credits to enable investment directly into the conservation project in Sarapiqui, they said in a press release.
The tokenised credit represents an assurance that no harmful development or deforestation will take place on the land, they said. Carbon Pulse has requested more information.
Blockchain, a digital transaction tracker, provides the “backbone” for validating the sale and impact of the biodiversity credits.
“This ensures that every transaction is recorded immutably, providing a clear trail from investment to conservation outcome,” they said.
“By applying smart contracts, the system automatically enforces the terms of conservation agreements, guaranteeing that funds are used as intended and that the protected land remains inviolate.”
According to Biota’s website, features of its credits include:
- Forest Stewardship Council certification
- Collaboration with the Costa Rican International Center for Economic Policy for Sustainable Development on a “scientifically backed” pricing mechanism, backed by a model from Ernst and Young
- Some 75% of the credit price going to farmers
- Use of remote sensing technologies such as drones and satellite imaging to get “real-time” data
- Integrating data from the Global Biodiversity Information Facility
- Endorsement from the American Chamber of Commerce and collaboration with the Costa Rican government
Biota aims to address the challenge of funding shortfalls and scarcity of credible projects through its blockchain-based approach, it said.
“Our collaboration with Fundecor and Biota Nexus marks a milestone in conservation finance. It’s a fusion of modern-day tech with timeless ecological vigilance,” said Juan Guerrero, CEO of Blockchain Jungle.
By Thomas Cox – t.cox@carbon-pulse.com
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