In a short notice interview, Leonard Harley from ImpactChoice, the company behind the Earth Token spoke to House and Lootz from the Core Group, the host of the popular web-based, Crypto Core Radio. A recorded copy of that show is available here. During the opening of the interview, Leonard painted a picture of the history that inspired the entire project that is Earth Token.
Leonard explained that in 2008, his son was learning in school about the climate changes aka global warming and the catastrophic results that planet earth was headed for in theory.
“My youngest son came home and educated me about what was going on, and I was so shocked. I kid you not. I walked around for three days in a total daze. Every time I got to an endpoint it was …well, what’s the point? We are going to kill all life on this planet. After the initial shock had worn off, I sat back, and I started to think from a problem-solving perspective. I started to look at this thing, and I said …I think we can use technology to solve the problem.” Commented Harley.
Carbon Mitigation Offsets
Leonard and his team came to their product which is a Carbon Mitigation Solution on an open exchange. Carbon Mitigation refers to environmental impact mitigation. That’s a fancy way of labeling a solution to the mess being made on the planet.
Typically companies and organizations determine their macro- footprint, or their negative impact on the planet- sometimes called carbon footprint. They determine the impact and then they go to the market and purchase an offset to their negative impact, called a carbon credit which is a traceable instrument that is recognized internationally. This type of credit is created by a company somewhere that adds positive impact to the planet and thus has a positive score instead of a negative score. This essentially evens the score for any negative impact a company has based on their carbon footprint, making it possible for a company to ensure that they have a net impact of zero if they have purchased the credit in the same amount as their impact.
How Mitigation Factors Into Operating Expenses
When companies do their accounting, they must calculate the profits and losses. When analyzing their costs of product sales, the Earth Token team takes the stance that the cost of the mitigation of a company footprint should be considered as part of their expenses or operating costs if they are expected to take financial responsibility for it. Environmental impact mitigation cost needs to be part of the calculations that determine the macro cost to the company. These dollars should be accounted for in an open transparency so nothing is left open to interpretation.
The current market for natural assets, as Mr. Harley estimated, is valued at 120 Trillion dollars currently. Natural assets can be anything from stored electricity, carbon positive natural gas, or carbon credit. The current market for natural assets has many middlemen, an opaque process with the flow of funds too easily hidden. ImpactChoice wants to create open trading for these natural assets and they aim to do so on an immutable, publicly distributed ledger known as a blockchain.
In order for such a blockchain to succeed, first, you must find suppliers who want to participate in this open exchange and, according to Leonard, finding those participants will not be difficult because suppliers are pretty frustrated with the current bureaucratic system.
The topic shifted to climate change again. The men exchanged a chuckle when Lootz mentioned the US and how US residents already pay taxes toward the climate change issue.
The Earth Token Representative broke the banter with what seemed to be an urgent message. He said
“I want to make a correction. In order to avoid getting sucked into being categorized as rhetoric, or activism, it isn’t just about the controversial topic of climate change.” He continued “It’s not about climate change. It is about environmental sustainability.”
The point that was emphasized was that organizations can accurately measure their actual environmental impact and in a transparent exchange setting they can purchase a real, blockchain verified carbon offset.
When asked about how an average person might benefit from supporting this project by buying in during the Token sale. Leonard explained that the asset exchange tokens will have a real store of value, determined by the market, and is projected to rise in value based on the natural asset market. Their blockchain will be based on Ethereum, and they will accept payments in Ethereum as well.