Thread by @ataylorharbour

Building a #refi thesis at the intersection of #web3 and #climate is equal parts fascinating and confounding.

It's easy to be a critic (or labeled as one) in this domain; what's difficult is suspending skepticism to understand how refi applications must evolve over time.

Pivoting our global emissions trajectory is going to take everyone, and it's absolutely critical that the climate community finds better ways of engaging and collaborating with fresh faces and and approaches in the industry.

My overarching takeaway is still that while tokenized #carboncredits and ecosystem services are asset-backed approaches that have intrinsic value, very few solutions have begun to address the critical challenges outlined in the first thread I wrote on this topic.

This is because the cornerstone value props of web3 (transparency and liquidity) as well as the vehicles that leading solutions deliver it through (#DAOs and blockchain-based distributed ledgers) are features, not holistic solutions sets in and of themselves.

In practice, distributed ledgers are essentially trust-building accounting mechanisms that resolve provenance issues; while DAOs today feel like direct-to-consumer crowdfunding with distributed governance for retail investors that draw in previously untapped dollars.

Like all "technology-in-search-of-a-problem" conundrums, the onus is on web3 founders to fit these features within solutions that project development and carbon markets actually need. It's unclear whether today's refi market leaders have truly done this.

bloomberg.com/news/articles/…

This is compounded in climate, as you're not only trying to apply these features to a business model that provides tangible value to customers... you're also trying to apply them in a way that results in real #impact in the natural world.
illuminem.com/energyvoices/2…

Make no mistake. It's the responsibility of the climate community to understand and navigate this complexity head-on, such that we can continue to apply constructive criticism and guidance towards the benefits and risks of future #refi solutions.
newsletters.theatlantic.com/galaxy-brain/6…