Climate startup dClimate, supported by billionaire Mark Cuban, has inked a preliminary deal with the Democratic Republic of the Congo government to generate $1 billion in carbon credits. The agreement aims to combat deforestation in a substantial portion of the world's second-largest tropical forest. Under the plan, dClimate will compensate the Democratic Republic of the Congo for safeguarding 500,000 hectares of peatlands, preventing the release of 100 million tonnes of carbon dioxide over a decade.
A group of chimpanzees sitting among trees. AI generated picture.
Dedicated to ensuring transparency, dClimate will actively monitor the preserved land, aid the DRC in establishing a carbon-credit registry, and sell the generated credits on the open market. Siddhartha Jha, the co-founder of dClimate, emphasised that payments are contingent on the sustained preservation of the specified area throughout the ten-year agreement, potentially valuing the credits at around $1 billion.
Read more: Peatland restoration: Why it's crucial and how to pay for it
The DRC's forests are estimated to capture 822 million tonnes of carbon emissions annually. Despite trading at a modest $5 on the voluntary market, dClimate anticipates securing $7 to $10 for its credits. The company's advanced technology and a new registry are expected to instil confidence in investors, ensuring the legitimacy of the offsets.
Read more: Madagascar triumphs: $8.8 million earned in groundbreaking carbon credit deal
The deal, supported by Mark Cuban and Chainlink founder Sergey Nazarov, marks a significant step towards ecological preservation, aligning with national growth objectives. Stephanie Mbombo, the DRC's special envoy for the new climate economy, views the agreement as a crucial balance between preserving the environment and fostering economic development. The project is expected to commence in 2024, pending the finalisation of the contract.
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