How we help to de-risk nature based carbon projects

Solid World is building an innovative funding framework that will enable the scaling of the voluntary carbon market, by providing liquidity for carbon reduction projects. There are inherent risks associated with high-potential carbon reduction projects: Their tokenized agreements ensure all forward deals are immediately liquid, ensuring buying and selling at market rates.

The challenge

Unlocking funding for carbon reduction projects is the core problem Solid World is looking to solve. Trust is a key challenge, given the skepticism around the crypto space and the complexities of developing new carbon projects; the implementation of a world class de-risking process has been key for Solid World to be able to instill confidence in investors. Another challenge is that nature based carbon projects can be hard to value since climate change often causes impacts to project sites while development is underway. Accounting for such impacts is key for the projects to be accurately valued at the outset.

Sust Global’s solution

Solid World’s prior climate risk due diligence relied purely on historic risk exposure. With the changing climate, they wanted to effectively incorporate both historic and forward looking risk exposure to climate hazards in their risk scenario assessments. Sust Global’s granular, real-time observation of climate impacts and forward looking climate scenario analytics, across multiple acute and chronic climate related perils, have enabled Solid World to create climate projections with an additional layer of clarity for project stakeholders, ensuring greater trust and transparency.

Sust Global's granular climate risk projections enable efficient accounting of climate risks to carbon projects which incorporate a precise view of the evolving climate change scenario. This is important for the valuation process and to ultimately ensure carbon project developers include an appropriate buffer for future climate risk.

Solid World sees the opportunity for Sust Global’s physical risk datasets to build upon the previous climate risk modeling method of linearizing historical data. Sust Global provides frequent scenario-driven modeling that takes into account current global state which helps Solid World account more precisely for climate risk to a new or on going carbon project, providing a buffer and accounting for harm done by climate change during the duration of a carbon project. This improves the way that future risk is incorporated into project assessments and supports the development of multiple types of nature-based carbon offset projects.

If you would like to learn more about how Sust Global can help your organization assess physical climate risk, get in touch!

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