Over 65% of the CO2 generated over the last 50 years has been generated by 10% of the world’s population. The creation of CO2 gases in our atmosphere has fueled the industrial revolution for the western world. Now, as the rest of the globe looks to catch up the ramifications of duplicating that CO2 footprint to fuel their success would destroy the planet for all of us. The dilemma is how do we deny 90% of the world the same benefit enjoyed by the prosperous 10%.
The problem is exacerbated by geopolitical interests that prevent the common solution to this global problem. Currencies vary widely in their stability, corruption runs rampant in developing countries, and energy is needed to fuel development. The options for generating power at a scale sufficient to fuel economic growth are limited and take a long time to plan and build. Even when the energy-generating resources are built the capital to continue to fuel them is difficult for developing countries to keep up with. As technology advances allow for the large-scale deployment of renewable assets with fuel sources that are free such as solar, wind, and geothermal, we can address these issues.
The difficulty is that with these renewable assets it is often like paying for your cell phone bill for the next 7 years upfront to provide for 20 years of service. If they choose to go with coal or other fossil fuels the governments that provide those fuels get together to help these countries fund those assets as a way to participate in their growth through the long term supply of the fuel needed to run them. There needs to be a way to allow these developing countries to have access to the capital to allow them to make investments in renewable, non-CO2 producing assets.
Investment in renewable assets across borders is difficult. Currency conversion and relative inflation rates make the economic risk for investors unpalatable. By utilizing a more stable uber-currency such as the Co2Bit coin the currency hedge can be self-contained. There is also an issue with sovereign control over currency conversions and monetary policies governing the movement of fiat currencies into other more globally accepted currencies such as dollars or euros. This is usually done as a means to control inflation and the value of the fiat currency on the world market. National GDP imbalances and other factors all contribute to making it more difficult for developing countries to attract capital investment, especially into their domestic infrastructure. However, without this investment it is difficult for them to establish a competitive position in the global economy.
CO2 Energy’s Role
CO2 Energy and its partners and affiliates believe that in order to promote the reduction of CO2 in our atmosphere we need to continue to incentivize the appropriate climate behavior in all areas of the world. Every molecule of CO2 that is generated into our atmosphere matters and we need to make sure that we continue to provide the proper incentives to actors around the world. These inducements must be able to rise above local, national and even international politics in order to continue effectiveness. To do this we are looking to leverage the innate abilities and powers contained in blockchain technology and specifically the CO2Bit Contract.
CO2Bit is a global currency whose focus is on the reduction of these harmful gasses in our atmosphere. It is CO2 Energy’s ambition to be able to attack the problem on multiple levels and ultimately provide the financial support needed globally to make a difference.
As a participant in the Co2Bit currency ecosystem, CO2 Energy will help direct the future efforts of the world in fighting the climate change effect of the CO2 levels in our atmosphere. First off, by using the currency as an investment tool CO2 Energy and other CO2Bit coin holders participate in the appreciation of the currency on the world market as we all find ways to reduce our CO2 levels together. Secondly, CO2 Energy seeks out and enables investment of the coin into various CO2 initiatives such as renewable power generation and to preserve and promote the forestation of our planet. Together we will be able to place the proper incentives to make our planet a better place for our children.
The coins generated by the asset investments, in turn, will be used to incentivize continued investment in new initiatives as well as to help boost the returns on these target initiatives to promote their construction and attract additional capital.
The Co2Bit coin incentives offered to these assets will be done in a way that drives the collective goal of reducing CO2 emissions that provides appropriate returns to new assets to make them viable and attractive in the markets where it is desired to achieve global CO2 reduction goals. For example, where a renewable asset is placed in a location where it is replacing power produced by coal it would have a higher CO2 value than one placed where it would be replacing power produced by natural gas. Likewise, a higher CO2 value would be assigned to an asset that is being placed in service where it is preventing trees from being used as fuel or is replacing kerosene or diesel.
Early uses of the coin include a large CO2 consuming tree in the Amazon Rain Forest. Each coin will contain the specific coordinates of these trees. Owning these trees effectively pays for sustaining the forest which requires ground clearing to reduce the risk of fires and culling (approx. 10%) to allow continued growth.