Dipping into Digital Disruption: New tools and dynamic solutions
There are so many interesting digital developments for conservation already in progress! Blockchain is famed as a decentralised method of storing data that can improve transparency and traceability, and it can be used to help the most vulnerable of environmental practitioners. Philanthropists could give money directly to local practitioners and reduce reporting burdens (currently, only 17% of global conservation funding intended for Indigenous Peoples and Local Communities actually reaches them), and Indigenous Peoples could track how their traditional knowledge is being used, as well as receive instant compensation as the knowledge holders.
Blockchain can also be used to create ‘smart contracts’ – programs that create trustworthy and self-executing contracts. For example, Cambridge Centre for Carbon Credits (4C) is using Tezos smart contracts with satellite and other remote-sensing data to automatically issue exchangeable carbon credits to landowners, and fund deforestation avoidance projects. The Lemonade Crypto Climate Coalition automates local parametric insurance claims, for example, automatically paying smallholder farmers after a pre-agreed number of days without rain. This allows them to immediately access tools to mitigate problems as they arise rather than having to file a claim after a disaster has occurred.
Cryptocurrencies allow us to experiment with new financial systems and mechanisms that incentivise nature-positive behaviour. For example, SEEDS (inspired by the Mayans’ use of cacao seeds as money) is a currency that incentivises collaborative and regenerative behaviours, and rewards activities that build community and regenerate our planet. Fishcoin incentivises supply chain stakeholders to share data from the point of harvest to the point of consumption – tokens move along the supply chain and those who make extra effort to capture and communicate data are rewarded, with the data then being used to improve decisions by seafood buyers and fishery managers. Crypto may also be more accessible to the ‘unbanked’ who are excluded from traditional markets due to distance from banking services, lack of traditional identification documents, high transaction costs, etc.
Non-Fungible Tokens (aka NFTs – essentially a unique digital asset) are opening up another alternative funding stream in the conservation space. Project Ark, for example, is a WWF initiative creating carbon neutral NFT collections of art and music which when purchased directly fund animal and environmental conservation efforts around the world. Moss is selling digital ownership rights to one-hectare portions of threatened lands in the Amazon forest, using the revenue to fund patrolling, satellite imagery and daily remote-sense deforestation monitoring of the project area.