Innovative credits: UAE and Sri Lanka team up for sustainability

A Dubai-based fintech company, AQUAE Impact, has joined forces with Sri Lanka's Earth Restoration to issue biodiversity and oxygen credits through a pilot project in the Belipola private forest.

Close-up of Barberton Daisy flowers in  Belipola forest, Sri Lanka. AI generated picture.

In May, AQUAE Impact launched a joint venture, AQUAE Labs, to support farmers in scaling the world’s first analogue forest, a model focused on enhancing biodiversity by mimicking natural forest systems. This initiative will cover 17 acres of the Belipola forest, a private restoration site established on an abandoned tea plantation.

Next month, the company plans to deliver these credits and list them on a blockchain platform developed by AQUAE Impact. Pricing details are still being finalised, with an intangible asset valuer engaged for the audit.

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An oxygen credit represents the ecosystem services of photosynthesis, capturing carbon, producing oxygen, and purifying groundwater. Unlike carbon credits, the value of an oxygen credit varies based on the contract and the tree species involved.

AQUAE Labs plans to contract 2,500 trees, including fruit, timber, and rare species, cultivated by 250 farmers in Sri Lanka using analogue forestry designs. Each farmer will receive $1,000 over four years to ensure tree survival and contribute to ecosystem services.

The initiative is in talks with major airlines and manufacturing companies to purchase these credits, aiming to complement carbon credits by offsetting oxygen consumption from fossil fuel combustion.

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In addition to oxygen credits, the project will generate biodiversity credits through biodiversity mapping and monitoring. Birds will be the primary index for assessing the environmental conditions of each project area.

This collaboration marks a global first in recognising the value of oxygen as a complement to existing carbon markets, highlighting a significant step forward in environmental sustainability.

DGB Group's carbon projects focus on conserving nature and promoting biodiversity through nature-based solutions. Our initiatives help companies lower their carbon footprints while positively impacting the environment. At DGB, carbon compensation means more than just offsetting. Our premium projects actively enhance biodiversity, restore ecosystems, and support local communities. By prioritising biodiversity, we bolster the health and resilience of natural habitats, ensuring a vibrant environment for future generations.

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