Axess Impact - Catalyze finance towards NBS, SDG and carbon credit impact projects.

Use Case
November 4, 2022
Mathieu

Problem

The development of human activities is having an irreversible impact on the climate and other life forms on the planet. The inertia of globalized growth models creates an urgent need for new approaches that are compatible with current models. This transition to new and innovative approaches, such as clean development mechanisms, sustainable development goals, or green taxonomy, should bring a new kind of economy, thad incentive more the real impact thant the economical growth.

This globalised world is becoming increasingly complex and uncertain, as the IPCC has once again reminded us: the commitment of states and the will of economic actors is not proportioned to the challenges.  But paradoxically, as the world becomes increasingly interconnected, new opportunities emerge to bring together expertise from different fields and make collective action possible at the national level.

To address these global challenges, it is therefore urgent to make the most of existing policy solutions by integrating public and private sector participation to accelerate investment in nature-based solutions.

Opportunity

AxessImpact's mission is to design and implement a trusted framework based on already existing regulatory frameworks, following established scientific protocols in order to enable through reliable data, the acceleration of the transition of nature-based solutions.

AxessImpact is a company founded in 2021 that brings trust and transparency to investors and companies acting to develop nature-based solutions, the SDGs and carbon certificates.The company has developed an innovative platform based on the 3M process: "Measure, Monitor and Monetise".

An integrated, multi-stakeholder framework based on the SmartB blockchain and capable of implementing a multitude of protocols in a scalable manner. The principles of disintermediation of project governance make it highly resilient.

Challenges

To provide a new way of financing projects by marketing carbon credits ex-ante and valuing the risk taken by investors.

Tipping point

Set up a platform able to provide accountability for each of the actors, validation of documentation and reference scenarios, traceability of actions carried out on projects and produce an update of the impact value in relation to the risk and the market.

Implementation of SmartB

An innovative approach to impact finance

Axess Impact's platform enables the transformation of "Nature Based Solutions" projects into investment opportunities.

In order to do this, it is necessary to qualify the eligibility of projects and in particular to ensure :

  • Additionality: the projects carried out would not have been possible without the revenue from the sale of carbon credits
  • Measurability: the quantity of carbon avoided or sequestered must be measurable in relation to a reference scenario, and a recognised measurement methodology must be applied
  • Permanence: the CO2 must be avoided on a long-term (not temporary) basis
  • Verification: an independent third party must audit the project among its lifetime to verify the amount of emissions avoided or sequestered
  • Avoid double spending: carbon credits must be sold only once
  • Social, economic and environmental co-benefits: the project must include co-benefits for local populations

Once the projects have been qualified, the protocol is digitised. It allows the creation of the model and the events to be monitored to ensure

  • that the quantity of impact (addtionality) measured is in line with the (updated) scenario,
  • that the anticipated risk decreases as the project is implemented,
  • and that the value of the impact produced is in line with the market value.

Investors can thus invest upstream to finance projects and the risk associated with their execution.

Axess Impact's innovation lies in the control of this upstream financing, which makes this investment opportunity available on its platform for asset managers. The platform allows these actors and their clients to access not only financial information, but also protocols, validations and field information that justify the value of the asset.

When projects are completed, the carbon credits are validated and available on the market. The quality of the data and the traceability provided throughout the process makes the assets produced by Axess Impact much more attractive on the market.

A technology that creates value for all stakeholders.

The SmartB product is based on a technological platform that allows the implementation of all the actors involved in the projects handled by AxessImpact teams:

  • Project owners can add all the documents and associate them to the stages of a valorisation protocol
  • Local stakeholders playing a role in the execution of the protocol can be encouraged to participate and rewarded for their impact as the project progresses
  • Verifiers have direct access to all documents and checkpoints
  • Data aggregation services can add monitoring data directly associated with the phases of the protocol and value their contribution throughout the project
  • Investors can track the allocation of their investment and the impact of that investment on the project and benefit from the valuation of the risk raised
  • Credit buyers can have access to all the data and history of the project.

A project that takes full advantage of SmartB technology

Access Impact's project is designed to accelerate the green transition by enabling NBS projects to be scaled up. It takes advantage of the functionalities of the SmartB Framework, which makes it possible for these actors to cooperate, to record proof of impact and to finance them in the form of digital assets:

  • The "Connect" brick: this is a development environment that allows all the stakeholders of a project to be implemented simply and quickly and to define their roles. This component also makes it possible to manage the registration, identification and validation (KYC) of users, to associate them with organisations and to assign them complex rights.
  • The "Protocol" brick: This is the mechanism for digitising the requirements of carbon offset standards. In impact projects, validation operations are generally carried out by external auditors. In the framework of Axess Impact projects, it is the members of the scientific committee who carry out these verifications. This verification is simplified by the auditing functionalities which allow the evidences to be associated directly with the requirements of a protocol.
  • The "Factory" brick enables the implementation of data monitoring systems. This means collecting information from the field or from monitoring devices (e.g. satellite images) and producing evidence that activities have been carried out according to the protocol. Another part of this component allows the visualisation of the evolution of additionality in relation to a current scenario and a calculation of risk factors in relation to the progress of the protocol steps.
  • The "Impact registry" makes it possible to materialise the actual value produced by the project and the relative contribution of each stakeholder. It provides a standardised way of recording each evidence of activity completion in the form of a transaction (evidence of impact). This register integrates the data sources, the protocol used, the signature of the data aggregators and validators and thus makes each transaction auditable.
  • The "Finance" brick enables the financial monitoring of the programme and defines the distribution of value to the various stakeholders. It links the amount of impact and risk recorded at each stage of the protocol to the value of that impact on the market.

Results

Using SmartB's technological components, AxessImpact has developed a platform for measuring, monitoring and valuing new generation carbon credits.

It allows to accelerate the financing of nature-based solutions.

The investors who finance the project have an asset management tool that allows them to manage the risk and provides end-to-end traceability of the projects.

TakeAway

  • The cooperation required to implement an impact project requires the implementation of a multi-actor platform capable of managing a wide variety of different types of actors and roles.
  • Impact assessment requires the implementation of protocols. Scaling up project processing can be achieved by automating the verification of requirements for each type of protocol.
  • Producing and valuing impact at scale requires automation of data collection operations associated with traceability of sources and actors' contributions.
  • Impact remuneration is possible when the value of the impact is verifiable and the ownership of the impact produced is clearly established.

Experienced entrepreneur working in digital, impact and wood industry. Mathieu is in charge of SmartB oprerations, helping clients to succed in developping their impact projects.

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