SOCIAL INNOVATION

A. SOCIAL BUSINESS IDEA

“VerdeChain – A Blockchain-Powered Initiative for Greener Tomorrows”

 

The implication of this mantra is that “VerdeChain” is a project or initiative utilizing blockchain technology with the goal of promoting environmental sustainability and creating a better future. The term “Verde” suggests “green” in several Romance languages, hinting at the initiative’s focus on eco-friendliness. By leveraging blockchain technology, VerdeChain aims to address environmental challenges and contribute to a more sustainable and environmentally conscious world.

VerdeChain vision is to become the pioneer in applying BlockChain technology to supervise tree planting activities in Vietnam and Asia. The vision of our project is to green the Earth and NFT 1 million forest trees in 2025 and our vision is to create a future where afforestation is not just a solution, but a sustainable and scalable approach to combating climate change. We envision a world where every tree planted is a step towards a greener, healthier planet. Through our platform, we aspire to foster a thriving community of individuals and organizations dedicated to the cause of afforestation, united by the shared goal of environmental stewardship and by leveraging blockchain technology and NFTs, we aim to set a new standard for transparency and accountability in environmental initiatives. Ultimately, we envision VerdeChain as the leading platform in Asia driving meaningful change in afforestation, contributing significantly to the achievement of the United Nations’ Sustainable Development Goals and leaving a lasting legacy for future generations. 

 

At VerdeChain, our mission is to revolutionize afforestation efforts by connecting planters and sponsors through a comprehensive toolkit empowered by blockchain technology. We aim to provide a platform that facilitates efficient data collection, resource optimization, and real-time transmission of information, ensuring transparency and accountability in the planting process. By doing so, we address the urgent need for combating climate change and its detrimental effects on the environment. Our prime focus is on serving both planters and sponsors by harnessing the power of technology to make a tangible difference in afforestation efforts globally.

 

Our project is aligned with the UN’s 13th goal: Take urgent action to combat climate change and its impacts to our environment. According to EcoGreen, a tree planting organization in Europe, one tree absorbs approximately 25 kg of CO2 a year, equivalent to 25 tons of CO2 absorbed for every 1000 trees planted. Moreover, Osman et al stated that “Depending on the tree species, CO2 uptake during forest growth may span 20–100 years until the trees reach maturity, after which sequestration rates slow down significantly.” Through the advancement of our system, we wish to get more organizations to involve in the tree planting activities since we will help improve the transparency of the process. The result of this effort is expected to help slow down the greenhouse effect and global warming.  

 

We actively support the UN’s 15th goal: Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss. According to the UN’s Meetings Coverage and Press Releases report in 2019, annually, the global community witnesses the loss of 12 million hectares of fertile land, leading to wide-ranging repercussions such as diminished agricultural productivity, substantial food wastage, heightened conflicts over natural resources, involuntary displacement, and decreased ability to withstand the impacts of climate change. The more trees grew under our system, the more positive impacts are made to reduce soil erosion and reverse land degradation. Trees are proven to intercept rainfall which stops ‘splash erosion’, reduce the amount of water in soil through transpiration, roots bind soil to sloping ground and break the wind, preventing it from blowing soil away. 

 

VerdeChain’s platform is built so that any organization or individual, anywhere, can easily develop, operate and scale reforestation. We also value the local community’s engagement and as we believe they play a crucial role to maintain the quality and quantity of our planting areas. The sustainability of these areas will directly benefit local people as they will have more jobs and better living environments.  About type of forest, we are currently supporting projects deployed on all three types of forests:

– Special-use forests: help preserve natural forest ecosystems, biological genetic resources & scientific research in national parks, biosphere reserves, conservation areas…

– Protection forests: help protect water sources, protect soil, prevent erosion, landslides, flash floods, floods, prevent desertification, limit natural disasters, regulate climate and protect the environment in regions watershed, coastal

– Production forests: support businesses/business households in managing raw material growing areas & authenticating the origin of forest products.

 

VerdeChain is mainly concentrated on addressing the environment-related problems of deforestation and the influences of climate change. We are going to utilize blockchain technology to plant 1M trees before 2025 with the aim of minimizing the unwanted negative effects and protecting our environment.

 

Deforestation

Deforestation refers to the reduction in forest areas around the world that are lost for activities (agricultural croplands, urbanization, or mining activities). Significantly accelerated by human activities since 1960, deforestation has been negatively affecting natural ecosystems, biodiversity, and the climate

Deforestation rate: 

• According to the World Wildlife Fund (WWF), around 10M hectares of forest are destroyed annually, making way for activities like cattle pasture, palm oil plantations, roads……Most of this is happening in tropical regions (approximately 95% of deforestation), where there is a particularly rich variety of life 
• According to the statistics from the Global Forest Watch, from 2002 to 2023, there was a total of 76.3M hectares of humid primary forest lost globally, making up 16% of its total tree cover loss in the same time period. And the total area of humid primary forest also decreased globally by 7.4% in this time period .

About Vietnam, from 2002 – 2023, Vietnam lost 756 thousand hectares of humid primary forest, making up 22% of its total tree cover loss. Total areas of humid primary forest in Vietnam decreased by 11% in this time period.

 

What is affected?

•  Biodiversity: forests represent some of the most veritable hubs of biodiversity. From mammals to birds, insects, amphibians or plants. The forest is also a home to many rare and fragile species with 80% of the Earth’s land animals and plants live in the forest. By destroying the forests, human activities are putting entire ecosystems in danger, creating natural imbalance and putting life at threat.
• Local people and their livelihoods: the International Union for the Conservation of Nature (IUCN) estimates that nearly 25% of the global population relies on forests for their livelihoods, including many of the world’s poorest communities. The world’s indigenous populations suffer some of the worst impacts of forest destruction, with deforestation displacing entire indigenous communities.
•  Food Insecurity: 52% of the land used for food production is moderately or severely impacted by soil erosion. In the long term, the lack of healthy, nutritious soil can lead to low yields of food insecurity.

 

Climate change:

Climate change refers to long-term shifts in temperatures and weather patterns having a wide range of impacts on the environment and human society. These shifts may be natural, but since the 1800s, human activities have been the main driver of climate change, primarily due to the burning of fossil fuels (coal, oil and gas), which produces heat-trapping gases.

 

What is affected ?

• Rising temperatures: global temperatures have risen by about 1.1°C since pre-industrial times, with the last decade being the warmest on record. This rise in temperatures has led to more frequent and intense heat waves, droughts, and wildfires in many parts of the world
• Melting ice: arctic sea ice has declined rapidly over the past few decades, with the summer minimum extent decreasing by around 13% per decade since the 1980s. This melting has led to rising sea levels, which threaten to inundate low-lying areas and displace millions of people in the coming decades. 
• Loss of species: climate change poses risks to the survival of species on land and in the ocean. These risks increase as temperatures climb. Exacerbated by climate change, the world is losing species at a rate 1,000 times greater than at any other time in recorded human history. One million species are at risk of becoming extinct within the next few decades
• More health risks: climate impacts are already harming health, through air pollution, disease, extreme weather events, forced displacement, pressures on mental health, and increased hunger and poor nutrition in places where people cannot grow or find sufficient food. Every year, environmental factors take the lives of around 13 million people. Changing weather patterns are expanding diseases, and extreme weather events increase deaths and make it difficult for health care systems to keep up.

To better understand the impacts of deforestation, we should take a rigorous scrutiny of the current problem landscape. 

 

Global Deforestation

• According to the Food and Agriculture organization of the United Nations’s Global Forest Resources Assessment report in 2020, a significant area of forest has gone away. Since 1990, more than 178 million ha of forest has been lost, equivalent to the size of Libya. During the period 2010-2020, the rate of decline of net forest loss is 4.7 million ha a year. 

 

Global Deforestation has led to these severe consequences on the environment: 

• Carbon Emission: UN Environment Program presented that Deforestation and the Degradation of forests contribute to 11% of carbon emissions, as forests and woodlands serve to absorb about 30% of emissions originating from industrial activities and fossil fuel usage. When forests are cleared or disturbed due to deforestation, this stored carbon is released back into the atmosphere as CO₂ and other greenhouse gase

 

• Global warming: deforestation contribute to climate change, or more directly, global warming through a triple effect
  • Loss of Carbon Sink: Forests act as allies in keeping excess carbon out of the atmosphere. When trees are removed, this natural carbon sink is diminished.
  • Direct Emissions: Felled trees release the carbon they had been storing, either through decay or burning on the forest floor. This process emits additional CO₂.
  • Accelerated Climate Change: The combination of reduced carbon sequestration and increased emissions exacerbates global warming

 

• Soil erosion: deforestation has increased the rates of soil loss, leading to many negative impacts on the environment. The rate at which soil loss accelerates following forest clearance is remarkable. Research conducted in Ivory Coast (Côte d’Ivoire) revealed that forested slopes experience a yearly soil loss of 0.03 tons per hectare, whereas cultivated slopes lose 90 tons per hectare annually, and bare slopes lose 138 tons per hectare. Another statistic that has proven the urgency of soil loss is that when compared with the world’s habitable land that was covered with forest, we have lost one third of this area, indicating a decrease from 6 to 4 billion hectares.
• Biodiversity loss: The WWF’s Living Planet Report 2022, which uses The Living Planet Index (LPI) to provide insights into the health of nature by tracking wildlife populations across the globe has found out that from 1970-2018, Wildlife populations worldwide had declined 69%. Biodiversity loss is the lowest in Europe and Central Asia with 18%, while Latin America and Caribbean suffer from the highest loss, accounting for 94%. Asia Pacific witnessed an alarming rate of 55%, urging us to take more action to prevent this reality. 

However, it is even more severe when taking it into consideration under the scope of its impact on human’s live. People rely heavily on the forest to earn a living, especially people in developing countries. Forests offer essential resources, from food, fuel, and building materials for people. WWF’s report that forests provide more than 86 millions jobs globally and these jobs include activities related to forestry, agroforestry, and sustainable resource management. However, the continuing deforestation has cut down a huge part of these jobs, creating an unsustainability and negatively affecting their lives. It’s more surprising to find out that deforestation impacts the lives of more than 1.6 billion people and 1 billion of them belong to the world’s poorest. 

 

One obvious case of this reality is people in the Mekong Delta region. In 2010, this country had 39.6 million hectares of natural forest, covering 61% of its land area. However, in 2023, this number decreased by 290,000 hectares. The loss of forest has led to: 

• The loss of livelihood opportunities: Deforestation reduces the availability of resources such as timber, non-timber forest products, and land for agriculture. Many local communities rely on these resources for their livelihoods, including farming, fishing, and gathering forest products. As forests disappear, these communities lose access to essential sources of income and sustenance.
• Increased vulnerability to natural disasters: Forests act as natural buffers against floods, storms, and other natural disasters. Deforestation in the Mekong Delta region leaves communities more susceptible to the impacts of climate change, including heightened flooding and erosion. This increases the risk of property damage, loss of crops, and even loss of life among local populations.
• Degradation of water resources: Forests play a crucial role in regulating water flow and quality. Deforestation contributes to soil erosion, sedimentation of rivers and streams, contamination of water sources, lack of water resources due to lasting drought. In developing country like Myanmar, agriculture is the main economic activity. The unavailability of water is a nightmare as they won’t be able to plant crops and carry out farming. Moreover, this can impact their access to clean water for drinking, irrigation, and other purposes, affecting the health and well-being of local communities.

 

The root causes that have led to these worth-worming situations are, sadly, coming from human’s demand to develop their living conditions. 

• Commercial agricultural expansion: The expansion of agricultural activities drives more than 90% of global deforestation, according to the Food and Agriculture Organization of the United Nations. Clear-cutting and logging operations, especially in tropical regions, clear large swathes of forests for timber and paper production. The expansion of Agribusiness, with rising demand for commodities like palm oil, soy, and beef drives the conversion of forests into agricultural land.
• The rising demand for farm products and meat is considered one of the main reasons for deforestation to happen.  For example, a research from Earth.Org enumerates that The production of beef is characterized by a significant inefficiency in resource utilization. To yield one pound of feedlot beef, an extensive amount of resources is expended, including approximately 2,500 gallons (9,463 liters) of water, 12 pounds (5.4 kg) of grain, 35 pounds (15.8 kg) of topsoil, and the energy equivalent of one gallon (3.8 liters) of gasoline. Furthermore, the inefficiency extends to soy production, a primary component of beef feed, where approximately 80% of globally produced soy is allocated for livestock consumption, leaving a mere 20% for direct human consumption. This disproportionate allocation of resources necessitates vast land areas to sustain the billions of animals slaughtered annually, often resulting in the conversion of previously thriving forest landscapes into agricultural expenses.
• Urbanization: the populational shift that is leading people to move from rural areas to urban areas is also the cause of deforestation (5% according to the FAO). This urban growth – in which 68% of the world’s population is expected to live in cities by 2050 – is leading to an exponential growth of housing and consumption sites. And as cities become larger so they can host more people, they challenge the natural boundaries surrounding them, often leading to deforestation.
• Building construction: globally, residential and commercial buildings consume over half of all electricity. As they continue to draw on coal, oil, and natural gas for heating and cooling, they emit significant quantities of greenhouse gas emissions. Growing energy demand for heating and cooling, with rising air-conditioner ownership, as well as increased electricity consumption for lighting, appliances, and connected devices, has contributed to a rise in energy-related carbon-dioxide emissions from buildings in recent years.
• Using transportation: most cars, trucks, ships, and planes run on fossil fuels. That makes transportation a major contributor of greenhouse gases, especially carbon-dioxide emissions. Road vehicles account for the largest part, due to the combustion of petroleum-based products, like gasoline, in internal combustion engines. Transport accounts for nearly one quarter of global energy-related carbon-dioxide emissions. And trends point to a significant increase in energy use for transport over the coming years.

 

About the current solution landscape. In Vietnam, there are certain social organizations that focus on tree planting like GAIA Nature Conversation and Save Vietnam Wildlife, Vườn rừng… These organizations have afforestation activities taking place on a large scale, attracting many stakeholders to participate. However, afforestation is not their one and only focusing, their Supervision and protection after planting still have many shortcomings due to shortage of technology 

When it comes to the transparency of tree planting organizations, the current systems have offered these following solutions: 

• Certification systems, used to ensure the sustainable sourcing of wood products through third-party auditing and certification processes 
• Remote sensing technology, used to offers a means to monitor afforestation project advancement and gather data on tree growth and survival rates. 
• Incorporating public reporting mechanisms provide stakeholders with insights into project progress, local community impact, and encountered challenges. 

• VerdeChain’s social solution design is centered around using blockchain technology to create a transparent and reliable forest planting solution. We do that through 3 steps:

 

• VerdeChain connects Sponsors and Tree Planters, and carries out verification work at the planned planting locations.

 

• Tree Planters use VerdeChain’s application to collect data at the planting locations and update information about the growth of the trees, the area covered by the forest, and more. 

 

• NFTs are stored and distributed to relevant wallet addresses for updating or retrieval at any time. These NFTs can also be displayed as evidence of the positive impact they have created on their social media accounts.

 

By using blockchain technology and NFTs, BlockTree creates a transparent and incentivized system that could have long-term impacts on both the environment and the communities involved in the project.

VerdeChain is proud to be one of the first and only organization in Vietnam to apply BlockChain for afforestation until now. The uniqueness of our solution are

1. Verification technology: By using blockchain technology to record and track the entire process of afforestation, from planting to maturity, it becomes possible to verify and track the entire process.
2. Real-time data transmission: allow stake other to keep track of tree condition after planting
3. Asia-focused: we focus on Asia market, a Pristine and unexplored land for afforestation using BlockChain
4. Emphasis on collaborative partnerships: we don’t try to do things on ourselves, we collaborate to exaggerate. 
5. Involvement of local communities: benefit local communities by creating jobs and motivate them to have responsibility with VerdeChain

We’re focused on meeting the expectations of our primary stakeholders, sponsors, who are typically companies and organizations. Their main concern is addressing the lack of transparency and accountability in traditional afforestation efforts. Sponsors are keen to engage in ESG activities and campaigns. However, post-campaign, they struggle to monitor the progress of their planted areas and quantify the environmental benefits. This inability to demonstrate the outcomes of their ESG efforts undermines trust with customers and partners, hindering further involvement in afforestation activities.

 

That’s the point where VerdeChain leverages our strategy to gain support from them. VerdeChain provides companies and organizations with  the 2 step strategy: 

First, VerdeChain will connect businesses with forest planters, part of VerdeChain’s network. Planters will be equipped with a comprehensive set of digital tools to collect data from planting sites and plan, assign tasks, monitor implementation & collect data right at the planting site in a simple, secure & transparent way.  Data will then verify with support from AI & advanced algorithms through a multi-layer verification process to ensure authenticity and accuracy.

 

The data is then minted to Green NFTs and by using VerdeChain’s solution, organizations will then have a unique, simple and delightful way to showcase their impacts. By leveraging blockchain technology, we offer investors greater transparency into companies’ ESG practices, reducing information asymmetry and mitigating risks associated with greenwashing and unethical behavior.

At the moment, we are collaborating with BlockTree, a technical platform connecting Planters and I’m a Sponsor in Asia. We receive operational support from BlockTree and their founders. We also receive academic support from VerdeChain’s Coach, all are FTU2’s lecturer. In the future, we aim to gain more financial support from companies and organizations. 

After our fieldwork experience, we’ve realized that many corporate ESG activities serve primarily as PR and advertising tools. Funds spent on such events could instead be directed towards impactful initiatives like tree planting. Moreover, these activities often contribute to environmental issues by generating additional plastic waste. Therefore, environmental efforts should prioritize tangible impact over image enhancement. Our project aims to create meaningful change for both society and the environment. With a strong ecosystem supporting social entrepreneurs, we’re confident in navigating the complexities of sustainable business models. Let’s work together towards a greener future where business success aligns with positive societal and environmental outcomes. Thank you for joining us on this journey