What is Happening?
EFFORCE, a web3 company co-founded by Steve Wozniak (Apple co-founder), is building the first Energy Efficiency NFTs to help fund energy-efficient projects.
These projects focus on a sustainable future by bringing a novel "Proof of Contribution" concept that underpins a new breed of utility NFTs.
The Genesis NFTs are a resource for making the necessary energy efficiency upgrades to businesses, as part of the Energy Efficiency NFT initiative to meet expectations to reduce energy consumption which is crucial in today's era of climate change and Environmental, Social, and Governance (ESG).
A 180 kwe combined cooling heating and power plant is the first project that will be developed by the company. This sustainable project is a part of an anonymous company's endeavours and is projected to run for more than 8,000 hours annually to meet the business's cooling and air conditioning requirements. Additionally, it will generate 1.4 GWh of electricity on its own each year. The cost is 210 USDC per NFT to fund this sustainable project. 400 WOZX (native tokens) must be locked by users for each mint of these NFTs. Additionally, the project is expected to yield rewards of 735.000 mWOZ.
The second project is an Energy Efficiency Project (EEP) for an anonymous company that will supply 60% of the power required by a sewage treatment facility. Additionally, it will provide heat to a sludge drying plant, reducing the weight of the discarded sludge by up to 80%. The projected earnings from that endeavour are $665,000 mWOZ. This model helps to fund sustainable projects where companies can build sustainable projects via funds raised from NFT or token issuance.
Vested Interest Disclosure: The author is an independent contributor publishing via our
What is EFFORCE?
To democratise access to energy efficiency projects, EFFORCE has developed the first platform utilising the power of blockchain technology. EFFORCE was founded by Steve Wozniak, Jacopo Visetti, Jacopo Vanetti, and Ken Hardesty. They have worked in the field for over a decade each on the premise that consumers don't need to alter their energy consumption habits to reap sustainability benefits.
Understanding the Importance of a Sustainable Future in the Face of Climate Change
According to estimates, the blockchain technology industry is projected to reach $4.94 billion by the year 2030 (excluding publicly traded cryptocurrencies). The latest Intergovernmental Panel on Climate Change (IPCC) report emphasizes the critical need for a worldwide energy transition by 2030 to achieve net-zero carbon emissions and keep global warming below 1.5 degrees Celsius. Fossil fuels must be used much less frequently and cities must run widespread sustainable electricity supported by renewable energy sources to ensure energy efficiency and prevent a climate catastrophe.
In Nunavut, Canada, Inuit hunters are already struggling to adapt to the changing climate and shrinking ice, threatening their way of life. About one-tenth of the four million people who live in the Arctic, including indigenous groups like the Inuit, Saami, and Chukchi, are at risk due to the region's warming at a rate roughly twice that of the rest of the world.
Further, in the United States, extreme weather has caused widespread power outages and destructive storms that have disabled large swaths of the country's ageing power grid. Between 2015 and 2020, the frequency of extensive blackouts is expected to increase by over 60%. Due to this, focusing on protecting our environment is critical for the survival of mankind and using cryptocurrencies and NFTs as an alternative mode of finance can help green companies establish sustainable projects to raise money and build projects that help our environment.
The Importance of Sustainable Development for the Cryptocurrency Industry
According to the Bitcoin Electricity Consumption Index maintained by Cambridge University's Centre for Alternative Finance, Bitcoin mining consumes more energy annually than either Malaysia or Sweden. This is a massive concern for environmental activists and the cryptocurrency industry alike. There are growing efforts to make cryptocurrency mining more environmentally friendly in response to rising public concern about the industry's energy footprint.
For instance, the Ethereum Foundation predicts that after Ethereum 2.0, energy consumption will be cut by 99.95 percent. This is an excellent example of how the cryptocurrency industry can try to reduce its carbon footprint and develop solutions that protect the environment and increase our economy's sustainable development.
Renewable energy expansion, improved energy management practices, and carbon offsets are all examples of how we can reduce carbon emissions. Tokenized carbon credits which trade via blockchain applications are a novel use of technology which can help minimise market inefficiency and help in carbon reduction. TRG Datacenters predicts widespread reform in using existing cryptocurrencies and developing new ones that are more environment-friendly and sustainable.
To decarbonize the industry and reach net-zero emissions from the power consumption associated with digital currencies by 2030, the Crypto Climate Accord has been signed by more than 45 companies and individuals in the virtual currencies, financial services, electricity, and technology industries. Using cryptocurrencies such as utility tokens and NFTs to fund environment-based projects can disrupt how green companies can raise finance from the open market to fund sustainable projects.
These initiatives are a step in the right direction which removes the stereotype around cryptocurrencies and blockchain technology being bad for the environment and instead focuses on using blockchain as a means of technology to leverage the development of sustainable projects.
Final Thoughts on Funding Sustainable Projects via Crypto
In my opinion, using tokens and NFTs to raise finance for developing and building sustainable projects is critical for both the cryptocurrency and environment industries. Novel ideas that help green companies fund their renewable energy projects via funding in crypto can help companies when they cannot seek capital from investment funds or venture capital firms. Further, this can bridge the gap between the cryptocurrency industry and environment activists where the latter sees the minimal application of blockchain technology which can help the environment. However, based on projects like these, we can see that this is not the case and blockchain is indeed an instrument that can help build a sustainable future for mankind.
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Noah Buscher and Tyler Casey.