Climate Finance For Small Farmers

write a whitepaper with working prototype that outlines a profitable way to distribute the risk of modernizing methods of smallholder farms.

https://www.cardanonocode.com/leadership.html

 S U M M A R Y

Even though billions are contributed for farm modernization by the United Nations and NGOs, the amount only scratches the surface of what is needed. We must find a way to make it economically viable to invest in Climate Finance projects. 

The stakes are high: farms are very vulnerable to climate change, and farmers bear some of the most significant risks. But small farms are also a major cause of greenhouse gas; they can be part of the climate solution by applying by adapting new methods of agriculture.   

B E N E F I T S

Climate Finance is badly needed to support and finance climate-smart investments to help small farmers achieve climate change adaptation and mitigation and to preserve their livelihoods.

Reduce Greenhouse Gas Agriculture accounts for up to 24% of greenhouse gas emissions with small farms being a significant contributor*. Small farmers could sequester more than 100% of current annual CO2 emissions with a switch to widely available, safe, and inexpensive agroecological management practices that emphasize diversity, traditional knowledge, agroforestry, landscape complexity, and water and soil management techniques**.

Increase Rural Income. The Economist estimated that by 2030, with the right policies and investments, agriculture could unlock the extra US $2 trillion in rural growth. Much of the growth could benefit smallholder farmers in developing countries where, especially in Africa, agriculture is likely to be the main source of people's livelihoods for the next several decades.

T E A M    E X P E R I E N C E

Team

https://www.cardanonocode.com/our-teams.html

Jonathan KOH (Principal)

Jonathan has over 30 years of experience in providing solutions in the trade arena. Jonathan has hands-on experience in over 40 digital trade/customs/trade facilitation programs globally. He is an expert in trade platforms commonly termed as "single window" which is one of the principal trade facilitation instruments advocated in the World Trade Organization's (WTO) Trade Facilitation Agreement which is in force and ratified by over 170 countries. Jonathan served as the Project Director for the many customs/trade facilitation implementation projects including Kenya, Qatar, and Oman. He was heavily involved in consulting, serving as lead consultant to the Government of Hong Kong SAR for their next-generation Electronic Trade system. He was the lead consultant to the Government of Greece and helped to develop their National Trade Facilitation Strategy and Roadmap. He also led technical assistance/feasibility studies in many countries. He served as an expert resource for ASEAN Economic Community and helped to develop the ASEAN's Seamless Trade Facilitation Indicators.

Jonathan had also served as an expert resource to various international organisations in trade facilitation and policy issues. He was a visiting scholar with the International Monetary Fund, served as a member of the International Advisory Committee for the United Nations Network of Experts for Paperless Trade in Asia and the Pacific (UNNeXT).

Timothy O'Brien (Principal)

Tim has 20 years experience building mission critical applications while working for Raytheon, Citi Group, Deutsche Bank, Bank of Tokyo, Danske Bank, Philips Health, Cerner Health, Norwegian Air Continental Airlines and most recently Google. Tim has worked with Cardano technology since 2019 and is a member of the Atala PRISM Pioneers program. Recently Tim's primary focus is making the power of the blockchain available to everyone. Tim has 6 years of blockchain development and runs blockchain development company with over 15 employers. Tim is a member of Singularity University.

Craig Young (Advisor )

Craig is internationally known as an expert in international payments. As the former CTO of SWIFT and the current CTO of Diem Association Craig has worked tirelessly to make cross-border payments a reality. Craig honed deep technical knowledge, giving me a unique perspective as I've progressed to senior leadership positions. I've served in VP and C-suite roles at global telecommunications and financial services institutions including SWIFT and Verizon, running technology, product development, engineering, and cybersecurity operations.

Gerhard Eschelbeck (Advisor)

Widely regarded as one of the foremost experts on network and system security, Gerhard was invited to present his research in information security to the U.S. Congress, and he is also a frequent speaker at major industry conferences.

He was named one of InfoWorld's 25 Most Influential CTO's in 2003, 2004, and received this honor a third time in 2006. Gerhard is a frequent contributor to the SANS Top 20 experts consensus identifying the most critical security vulnerabilities. Gerhard is also a highly regarded author and is perhaps best known for publishing the "Laws of Vulnerabilities." He is one of the inventors of the Common Vulnerability Scoring System (CVSS) and holds numerous patents in the field of managed network security.C L I M A T E  F I N A N C E

The proposers are leading a project in Ghana to help farmers adopt organic farming methods that not only are better for the environment but also would result in a projected to rise by 30% - 50% more revenue for the farmer who is already facing declining prices. Notwithstanding the huge economic incentive, many if not most small farmers are reluctant to gamble with their livelihoods on modern agricultural techniques they know nothing about.

Knowledge asymmetry allows us to use our high levels of confidence in sustainable farming techniques and a higher risk tolerance to offer a financial service to the farmer who has in turn an extremely low-risk tolerance and a very low level of confidence in sustainable farming methods.

1. Identify buyers of organic produce and connect them using a last-mile supply chain.

1. Approved farmers plant 1/2 plot of organic produce and commit to using recommended farming methods including regular tests of soil and pesticides. Records are maintained as metadata on the blockchain. We ensure 100% of the income-generating potential of the original crop (the value at risk) and provide seed and training.

1. Farmers who have completed step I can decide to plant up to several hectares using sustainable methods. We ensure 50% of the value of the original crop after the farmer agrees to allow the necessary soil and other tests to ensure sustainable methods are being used.

 Costs of failure are recouped by charging a fee on the premium over the base revenue of the farm.

C O S T  B R E A K D O W N

Whitepaper ( 2 month)- detailed 20+ page witepaper that describes the economics of climate finance and the key variables that must be understood and configured to customize lending.  

                                                                                                                                                    $3,500

Financial Rule Builder  Prototype (3 month) A DeFi app that provides the flexibility to be adapted to several farming scenarios. We will adopt the strategy of many DeFi applications that allow financial engineers to create a market with specialized market rules which others can decide to use for investments To make this as easy as possible, we provide a configurator that allows financial engineers to add the rule using a simple GUI tool. 

                                                                                                                                                        $3,500

Proof of Concept - The principals in the whitepaper and efficacy of the Financial Rules Builder will be demonstrated in Ghana as part of our year long code hackathon.  A document with lessons learned from this process will be posted on the Catalyst Discord Server. 

                                                                                                                                                          $5,000

TOTAL COST ..........................................................................................................................  $12,000

W H A T  S U C C E S S  L O O K S  L I K E

3 month -whitepaper completed and posted to our website ** .Links posted on the Cardano Catalyst Discord Server.

6 month -Financial Rules Builder designed and prototype built. Links posted on the Cardano Catalyst Discord Server. Proof of Concept will be started. 

12 month - Climate Funding DApp will be funded and operational based on the research done in this project. Investors feel secure putting money into Climate Finance and will be seeing returns on their investment. 

P U B L I C  L A U N C H   D A T E

Feb 1, 2022

References

* https://www.epa.gov/ghgemissions/global-greenhouse-gas-emissions-data

** https://www.fao.org/3/cb3808en/cb3808en.pdfCLIMATE FINANCE

*** https://www.cardanonocode.com