 
Author: Sunny Trinh, co-founder and CEO of DevvStream
In business and politics, one promise currently trumps all: the “net zero goal.” This ambition is both well-intentioned and promising, but it is becoming abundantly clear that the majority of those in leadership positions – both in government and in the commercial sector – do not have the knowledge needed to implement measures that will make a real difference. like achieving this extremely important milestone.
A general consensus of perhaps justified cynicism currently suggests that some players are hiding behind the fanfare of announcing lofty goals as a smokescreen for lack of action. And despite capturing the attention of the world’s media at the announcement stage, there are often very few tangible plans or strategies to deliver what they have just proclaimed.
As CEO of DevvStream, a Canada-based technology-enabled ESG company, I have personally discussed the issue with UN representatives, and it is clear that the UN Sustainable Development Goals (SDGs) are still far from being met. So what specific challenges need to be addressed to change course and move more companies and governments towards a greener future – and what will it take to inform corporate leadership teams and governments?
First of all, we all need to identify where the problem lies. Second, we must use the tools that nature has already given us, in addition to the tools that we can invent ourselves through technology. It is also important to be realistic about human nature: we cannot depend on altruistic and charitable behavior to bring about change. Instead, we need to make this issue economically viable and even profitable. And this is why carefully targeted carbon credits are so important. To give an example, we have developed nature-based projects in developing countries to prevent rainforests from being destroyed by oil and mining developers. This is achieved by showing local tribes that they can generate more income by keeping the trees – and the ecosystems that depend on them – alive through carbon credits, rather than simply allowing irreplaceable parts of the untouched nature is erased for the sake of: chic furniture, say.
The technologies we need to fight global climate change already exist
As we all know, knowledge is power, and this is especially true in this context: companies and individuals need to educate themselves so that they can make informed decisions tailored to their specific needs and circumstances. This will hopefully help debunk some myths – such as the belief that nature-based solutions are central to the drive towards net zero. While these types of initiatives – like the one I just referred to on forest protection – are vital, they will not contribute nearly enough to anyone’s net zero target. A study from the American University School of International Service found that nature-based solutions will contribute only up to 20 percent of the reductions needed to meet global climate change goals. The remaining 80 percent must come from technology – which is why we at DevvStream place so much emphasis on technological solutions.
The crucial role of technology
The benefits of technology are undeniable and plentiful. Perhaps most importantly, technological solutions are much more scalable than nature-based alternatives. For example, we have a wastewater treatment solution that reduces energy consumption by as much as 83 percent compared to current methods. For a small installation, this amounts to an electricity saving of more than 1 GWh per year.
You will find wastewater treatment plants in almost every city in the world; so even if a small portion were to switch to this technology, the impact would be significant. Our building efficiency program is just as powerful, encouraging lower energy consumption through activities such as better HVAC systems or LED lighting; and as for the huge source of emissions that is transportation, our carbon credits, for example, help promote and pay for the electrification of cars and buses.
Another advantage of the technological solution is the speed at which it produces impact, especially compared to most nature-based solutions. Take reforestation for example: it can take ten years for trees to mature and start creating an impact. Their technological counterparts, on the other hand, can be implemented within months – if not weeks – and deliver immediate results.
To continue the comparative count, many nature-based solutions merely keep us at the status quo when it comes to environmental impact. You could argue that this can’t be a bad thing, and while it’s important not to make things worse, we still need to reduce our emissions further – and this is where technology comes into play. The main source of emissions comes from technology – including infrastructure. , transportation and energy from fossil fuels – and it only makes sense to focus on this source. On the positive side, we believe that the technologies we need to combat global climate change already exist. We just need to accelerate their adoption and make them economically viable – and carbon credits are actively helping to achieve this.
The benefits of carbon credits
Sometimes I’m asked: Are the types of carbon credit projects we develop designed with a specific end user in mind? I would say they have universal appeal, although the credit structure varies slightly from case to case. As we all know, global warming is a huge problem, with the main culprit being greenhouse gas emissions such as carbon dioxide. To address this, the United Nations and countries around the world have set emissions reduction targets and signed agreements to achieve them. When an organization or country takes steps to eliminate, avoid or store carbon from the air, it receives one carbon credit for every tonne. Meanwhile, companies and countries responsible for excessive emissions will have to buy one carbon credit for every tonne they exceed – either based on a legal threshold or a voluntary target. These targets are certainly not small: it is estimated that we will need to reduce our annual CO2 emissions by 23 billion tonnes by 2030, and roughly half of this will be driven by carbon credits. This is why the carbon credit market is already huge and continues to grow. The market was estimated to be worth $1.16 trillion in 2023 and is expected to grow to $2.68 trillion by 2028.
We need to make this issue economically viable and even profitable
At DevvStream, we approach carbon credit investments in a way that meets the principles I highlighted above: we develop programs that generate environmental assets, such as carbon credits, with an emphasis on technology. We use carbon credits to generate revenue streams for other companies, organizations or even cities and states. In other words, if a company has developed an environmentally friendly technology or initiated an activity that helps reduce energy consumption or greenhouse gas emissions, we come along and provide a full turnkey service where we generate carbon credits and convert them into income. without extra costs. The additional revenue stream makes their technology more viable. In turn, we are paid through a portion of the credits we generate. So there is no risk for our clients and it is a win-win situation for all parties.
The future of carbon credits
As for the future prospects of this sector and our role in it, it will undoubtedly continue to grow as more companies and countries set net zero targets, requiring them to invest in more carbon credits. At the same time, there will be greater demand for ‘high-quality’ credits that offer transparency about the CO2 impact. We will see an increasing demand for precision in measuring this impact, along with pressure to release further details on environmental benefits and so on. The process of registering, validating, granting and certifying credits will also need to be improved, with greater efficiency. Some projects currently can take up to 36 months to complete these processes.
By relying on our expertise and range of technologies – including blockchain and AI – we will help address and simplify these problems. It was an honor and also a testament to our achievements in this sector that groups such as the United Nations recognize DevvStream as a leading expert in the field of carbon credits. I was recently invited to the UN African Headquarters in Nairobi to speak at the UN Environment Programme’s Science Policy Business Forum. My talk focused on how to address some of the problems associated with the carbon credit market today. We have also provided guidance to several governments and their compliance programs. I like to think that we don’t just participate in the carbon market – we help shape and improve it.