! TUPIX offers a win-win framework for all stakeholders involved. Portfolio de Internacionalização_Brazil 2016

Transcription

1 A webbased trading platform and service company for local compensation by industry and commerce, offsetting their environmental impact in a straightforward and efficient manner. TUPIX offers a win-win framework for all stakeholders involved. Portfolio de Internacionalização_Brazil 2016

2 SLIDE 02 Payment for Environmental Services () are mechanisms that pay or reward those who preserve nature. It is a means of pricing environmental assets, goods and services incentivising conservation and regeneration of the natural environments quality and integrity. Within, the services are expressed in payments, that is, the costs of maintaining and increasing environmental quality and integrity. can be translated into sellable units ( credits), representing monetary value. As such, constitutes a market for offsetting environmental degradation as a result of industrial, commercial and infrastructural activity: is a means of compensating environmental impact as well as a payment for a guaranteed and continued supply of the natural resources extracted from the natural environment. is applicable in a wide range of sectors of the global compensation market, such as generating carbon credits, the conservation of water resources, the deploying of environmental taxation, the sustainable exploitation of forests, the sustainable use of biodiversity etc. WHAT is?

3 SLIDE 03 Notwithstanding the vast global trade in CO2 credits and other compensation products, the maintenance and preservation of the natural environment and the resources it produces is not always interesting from an economic point of view for the owner of these resources. For example, in many cases it is more profitable to cut a forest and turn it into pasture areas than to keep it intact. As owners do not receive remuneration for providing environmental services, they are unlikely to consider them when making decisions about land use. transfers part of the benefits that environmental services generate for downstream service users to upstream owners and suppliers. therefore allows for more direct and rational trading between those who degrade and those who conserve and regenerate. Next to that, puts value on the quality and integrity of the environment and its ecosystems as a whole, allowing for a much wider range of services and products, than, for instance CO2 credits, that only factor in CO2 sequestration, a mere fraction of the overall environmental impact of human activity. For these reasons is the most suitable mechanism to establish a platform that facilitates more streamlined modes of compensation with more concrete and integrated results for the integrity of the natural environment. WHY is IMPORTANT?

4 SLIDE 04 Brazil has not ratified the Kyoto Protocol, and Brazilian companies are not obligated to offset their CO2 emissions. The Brazilian mechanisms through which environmental impact is compensated are unique. They are also complex and heterogenous, varying vastly per case, sector and location. is well represented in the Brazilian compensation landscape and offers the best venture point for innovating the current mechanisms. Following the COP 21 in Paris and Brazil s pledge to reduce emissions up to 38,9% by 2020, there is an increased demand for platforms that are adapted to the Brazilian reality, but can also facilitate the required innovation aimed at a more streamlined and efficient compensation with better results in terms of economic and environmental yield. TUPIX uses these unique aspects of the Brazilian context to gain a market position: - is a proper functioning, well accepted and disseminated means for compensating; Some initiatives in Brazil - There is a stable growth in the demand for compensation and a growing supply of compensation products; - There are no innovative, web-based compensation trading platforms yet available. in BRAZIL: TUPIX

5 SLIDE 05 In the global compensation systems and mechanisms the act of degrading/polluting is geographically disconnected from the act of compensating: e.g.: a company can offset CO2 emission in Spain by buying CO2 credits that sequester CO2 in Brazil. This random, global trade in credits only benefits an abstract balance of offset emissions, and, due to the complexity of the transaction, only a small part of the sum of 1 credit will actually be spent on the actual emissions offset, This does little in terms of safeguarding true resilience, integrity and quality of the ecosystems our natural environment consists out of. In Brazil, compensation of environmental impact, more often than not, is done from one state to another, as legislation allows for this. Also this practice does not offer the opportunity to create much added value for the integrity of whole ecosystems, as the distribution of funds still is random, based on the requirements of the compensator, rather than those of the (integrity) of ecosystems. Only by compensating locally, within a preset range of where degradation and pollution actually occurs, added value can be created within ecosystems, or clusters of adjacent ecosystems: this way, a surplus of results is created, as the result of one environmental service enhances the result of another within the context of an ecosystem. That is why the TUPIX platform has a state as the largest operational geographical unit for trading. GLOBAL vs LOCAL COMPENSATION

6 SLIDE 06 In Brazil, the current systems and mechanisms to compensate environmental impact from industrial activity is a complex chain depending on a lot of steps through different institutional levels involving middle-men in each step. This way, a substantial part of the available funds is spent on activities that do not contribute directly to actual environmental compensation: generating. TUPIX services State Government CSR Carbon Credits REDD+ Voluntary Market CER units NAMA UCS Etc... NGOs NGOs certifying agencies UdC Obligatory & voluntary compensation Legislation & regulatory frameworks Environmental licensing Environmental taxes accreditation agencies Fundo Clima Federal State Municipal Banks IBAMA Industry and commerce Many of these steps can be simplified and automated: TUPIX cuts out steps through its web-based platform, integrating computational modelling of the parameters and algorithms used in evaluating environmental impact and calculating (the monetary value of). TUPIX makes compensating with easier, whilst it increases the level of funding available for proper. CURRENT SYSTEMS vs TUPIX

7 SLIDE 07 + (x) - (y) C L E A N Water Air Soil Extraction of natural resources Degradation Energy Food Material etc... Processing & manufacturing Waste as the compensation mechanism combined with local compensation establishes a direct correlation between the polluter/degrader and the immediate environment the degradation and pollution takes place in. This allows for including many more environmental services into tradable portfolios: the requirements for a clean environment (water, air, soil), clean utilities, food and materials etc. can now be setoff directly against the actual degradation, pollution and waste-generation that compromises these requirements. With this approach, TUPIX can include technological innovation in solid waste processing, waste water treatment, power generation etc. as proper: the implementation of technologies will directly increase the extent of environmental integrity and quality, also within the built environment. This substantially increases the potential volume of generated offering polluters the possibility to compensate through developing and investing in technology, within the context of their industrial and commercial activity. 1 2 x / y Pollution TUPIX, through this new approach to and through local compensation is truly geared towards creating a win-win for all stakeholders involved in the compensation value- and productive chain. TUPIX prioritises the allocation of funds there where degradation and pollution happens: the plant, factory, installation etc. - as within TUPIX - implementing environmental technology IS an environmental service. The TUPIX productive chain covers the whole trajectory from the factory, (1) to its immediate environment (2), to its intermediate environment (3), to the ecosystem that encompasses and supports it all (4). This way, TUPIX stimulates the effectuation of environmental integrity and quality, creating a trading surplus in terms of the economic and environmental yield when compared with other systems. This surplus, in turn, incentivises the participation in the local trade, increasing its overall volume making it possible to sell it off in an interregional and even global context, without compromising the local-trading rationale and benefits. HOW TUPIX WORKS

8 SLIDE 08 Total volume of required compensation by industry, commerce and institutional stakeholders PLATFORM Total volume of projects and programs by individuals, communities, SME, NGO s, government and corporations services TUPIX is an automated web-based platform where buyers and sellers of credits can trade in real time. Buyers can choose to buy from any supplier, but the more credits associated directly with their degradation/pollution more they buy, the more compensation certificates they acquire. This incentivises the suppliers to develop and offer projects and products that dovetail with the required remediation of the degradation/pollution on the part of the buyers. TUPIX also is a service company, streamlining the trade on the platform through the hands-on aligning of degradation and remediation portfolios for buyers, offering real-time monitoring and feedback of degradation and remediation processes so as to maximise PSE yields for buyers and facilitating regional stakeholder coordination. HOW TUPIX WORKS

9 SLIDE 09 TUPIX facilitates real time and direct trade. Buyers and sellers will be charged for using the platform in 3 ways: TUPIX will take a commission on each transaction, a percentage for each credit sold through the web-based platform; The credit suppliers can register on the platform after an evaluation process of their company, product or project. Suppliers can apply for registration on a solicitation basis, being charged a fee for the application process. Once registered, a supplier will pay a periodic registration fee; The section of the platform that monitors the trading and performance of projects and project portfolio s, allowing access to real time data, is made accessible to subscribers for a periodic fee. The startup phase of TUPIX will include putting together an initial portfolio, coordinated with the regional stakeholders, and sold upfront to (a) launching costumer(s). Partners during the initial phase, leading up to the launch of the platform include industrial federations, universities and their labs, state and federal governments, state and federal agencies, NGO s, state and national institutes, municipalities, start-up incubators, etc. Portfolio building, sales and trade regulation through a regional stakeholder coordination platform, are services offered by TUPIX on a commission and consultancy basis, constituting yet another revenuestream for TUPIX. The time-lapse between initial credits offerings and their sales will decrease in time, lowering the risks for the operational continuity of TUPIX, also increasing ROI: the process of offsetting the total required compensation (red line) against the total volume of offered credits (green line) is not only based on supply and demand, but also on regulations - degradation needs to be remediated according to municipal, state and federal legislation (grey lines). t HOW TUPIX makes MONEY

10 Obrigado Developed by: Daniel Lipschits Patricia Dousseau

11 The BIOSFERA Foundation is geared towards developing a sustainable biobased, circular and creative economy, industry and society.