Until now, securing financing for carbon projects was a challenging task. However, thanks to the carbon project liquidity fund created by Solid World, in partnership with ALLCOT, Vlinder and Mangrove DAO, a new era in climate finance has begun.
This innovative initiative democratizes access to carbon project financing. It also addresses the main challenges faced by developers of mangrove restoration carbon projects by providing them with the necessary funds, while generating a structured inventory for distributors seeking to sell high quality carbon credits.
Liquidity fund for climate finance
The liquidity fund acts as a crowdsourcing counterpart to the marketplace, incentivizing the connection between buyers and sellers. The result is a win-win solution for carbon projects and distributors, ensuring better access to capital, attractive pricing, and real-time liquidity.
Likewise, it facilitates trading and hedging strategies that are possible in the traditional stock market but have so far been unattainable in the carbon markets.
Improving the Voluntary Carbon Market
Blue Carbon’s projects developed in Kenya, Senegal, Indonesia, and Myanmar will be the first beneficiaries of the liquidity fund. The proceeds from the trading of carbon credits from these projects will directly benefit the local communities where the carbon projects are developed.
Thus, this Liquidity Fund is a decisive milestone within the Voluntary Carbon Market industry bringing more transparency, more accessibility, more capital, and ultimately more impact to address the climate crisis.