SCB Group and KlimaDAO are entering a Carbon Project Financing Partnership for Improved Cookstoves for Rohingya Refugees in Bangladesh.
KlimaDAO voted to allocate funding for the carbon project supporting Improved Cookstoves for Rohingya Refugees in Bangladesh via blockchain-based governance process.
Kevin McGeeney, CEO of SCB Group said “The On-chain community, always at the forefront of shaping emerging best practice in carbon markets, has once again demonstrated how forward-thinking and agile it is by agreeing to invest in this project. I congratulate the KlimaDAO for their collaborative approach and am especially pleased I’ve had the honor to visit this project firsthand. The people we’re supporting left everything behind in their homeland of Myanmar, and although they are now safe in Bangladesh, their situation is beyond what most of us can imagine. Your investment allows these people to cook their rations and boil their water, saving time that can be more productive and sparing the scarce resources of the surrounding environment in the worlds’ most densely populated country.”
KlimaDAO held a DAO-wide vote which has ratified 250,000 USDC ($250,000) of funding to be used to support the development of the carbon project in Bangladesh in collaboration with SCB Group. The funding will enable the issuance of 31,250 Gold Standard certified carbon credits between 2023 and 2025. The carbon credits will be used to provide liquidity for consumers within the Digital Carbon Market (DCM) on the Polygon blockchain.
The Improved Cookstoves project in Bangladesh is helping address environmental and health issues within the Rohingya refugee and wider community that stem from the use of inefficient stoves and polluting open flames that are used to cook meals. The energy-efficient, improved smokeless cook stoves known locally as ‘Chula’ burn wood more efficiently, causing a significant improvement on the current reliance on traditional stoves or open wood fires. The technology can reduce the amount of wood that is required to be collected from the surrounding forests, and reduce the carbon and particulate emissions from inefficiently burning wood.
The partnership demonstrates how DAO mechanisms can be used to transparently allocate resources towards carbon projects to help scale their impact, as well as how community-wide governance can enable greater stakeholder engagement and scrutiny around the type and quality of carbon projects that are bridged into the DCM.
The partnership announcement comes after three months of discussion on KlimaDAO’s Community Forum, and a token vote via the Snapshot platform.
Drew Bonneau of KlimaDAO said “this is our first DAO-wide token vote to allocate funding toward a project financing initiative and an important milestone for the wider DCM. As the carbon markets become an increasingly utilized mechanism for directing capital towards pro-environmental projects across the globe, we believe increased community involvement can help raise the profile of impactful carbon projects, and increase scrutiny around the types of projects that are funded. The Improved Cookstoves for Rohingya Refugees in Bangladesh project, with its strong environmental and social co-benefits, now serves as a blueprint for future DAO-funded carbon project initiatives.”
KlimaDAO’s mission is to accelerate the delivery of climate finance globally by building the transparent, neutral, and public infrastructure needed to scale the Digital Carbon Market. KlimaDAO provides tools, products and services to make accessing this market easy for all carbon market participants.
