K. Fran Benedito and Chief Cherry Interview

VeChain Foundation Climate Research with Fran Benedito and Chief Cherry of ClimateTrade
Video link - https://youtu.be/NYO_yk9-8EY

My name is Shannon Sherry, a lot of my friends and colleagues call me Chief for Chief Terry. Justin, so great to see you. Once again. We've got we've got a great history together through TEDx. And through being presenters and the organization. And I thoroughly enjoyed your, your topic on blockchain technology in TEDx Cocoa Beach a few years ago. So I really appreciate you inviting us on this call. I'm actually the director of sales with a emphasis on aviation, at climate trade here in the US. So I'm working with partners, partnerships, and we're just really working on clients in airlines, aviation, airports, you know, that industry and of course, everyone else is, well, that's just my focus. But today, what I really wanted to bring is really the CEO and one of the founders of climate trade, just an amazing person. He's got a great story. And just really one of the biggest reasons why I came on board why I'm here today, and just doing awesome things in this space, right with with with climate with carbon offsets with Blockchain technology. Without, you know, further ado, I want to introduce to Fran, thank you so much.

01:53
Yeah, thank you so much. And thanks, Justin for, for hosting us for having us here is a pleasure and is mature. Sounds like working together. And you have a strong background. And we are very proud to have unionization. So thanks for having us, Justin and to have inflammatory today.

02:13
Yeah, yeah.

02:14
Thanks for Thanks for coming. So Fran, can you can you just get us started and and just talk about what you all are doing within the within the climate space? And how you're actually integrating that with Dan, you know, are leveraging blockchain to integrate that?

02:29
Yeah, sure. Well, basically, clima Trail is a marketplace where since its inception, we try to create the leading marketplace in terms of supply, user experience and bringing to the companies SMEs, not only corporations, but also SMEs. But at the end, also, citizens, individuals that want to do something against climate change the possibility of accessing, in a very clear, transparent way. Some of the biggest players will why and some of the biggest supply of production today we are the marketplace with more breaks in terms of carbon markets, but not also not only chiral carbon credits, but also biodiversity, plastics, energy, other things, that our solutions for climate change that need funding as well. Right. So we thought when we started with the project, and there is a long story behind that, I don't know. It doesn't come to now to the moment but we started with thinking okay, if the natural markets like the capital markets, natural capital markets and climate markets are based basically, OTC or at 90%, LTC today, maybe they are word by brokers. How can we provide some transparency interests earlier of this and we thought on using Blockchain technology, basically, it was a clear use case, on providing real data of the transactions to the end user, the people that was buying because today, you can go to get a flight and offsetting your carbon of the flight, but you don't really know if your money is going to the developer of the pray. They are saying they are wringing your money to or and you don't have full transparency of how much is the cut of the guy that is buying the providing you the offsets or for real if the answers are for real or not. They can say they're for real, but you don't know if they are canceled or not in the register there. So climate trade uses that blockchain technology was like the first company to do it in the world in 2018. We were awarded by the UN by this. And basically we've been evolving through our API to keep constantly innovating in terms of connecting our marketplace to registries bring transaction in kilos not only tones, which is was normally something that and blockchain for us as a climate trade. It is A source of transparency interest already for the user, right, is a tool to provide that.

05:09
Interesting.

05:10
So can you can you? Can you expand on this on this API integration a

05:16
little bit? I know some of its proprietary. But you know, can you get it? Can you give, share some information that you can share? Of course,

05:23
man, Facebook is public. So it's public. So I mean, anyone that wants to enter climate, we can go to market dot climate with.com is for is fully open to the to any any user. And basically, what EPI, it was something that I came up with the idea I was getting a flight to the cop in Bonn, I think it was 2018, I was making a speech there. And I got to Ryan and flight, I pay five euros for my carbon footprint, offsetting. And basically, I didn't receive any certificate, any email, I didn't know where my money was going at all. And I thought, Okay, why five years, which is my carbon footprint, where my money is going. And I said, we have to make that totally the opposite, we have to provide full transparency, because we are also in the age of transparency, right. So bring full transparency to the end user. And that's what we brought. So we certified in blockchain every transaction and that's how the API was incepted was created. So today, we have more than 35 integrations, more use cases than anyone worldwide. And I can put you examples of what we do with the API, we calculate an offset, and user transactions. So whenever you go to buy a product or service in some of the companies we work with, we calculate the the carbon footprint of the product you're buying, then you buy it, you can also the product and then you receive a certificate that accredited where your money is going, which probably you are investing in all that now and put your samples. In Spain, there is a company called Cabify, which is the Uber of can collect the Uber of Spain and Latin America. So every ride you make with them, they charge you a steroid defeat. That's climate trade. So basically, every every ride that you make with them, we calculate real time the co2 of that, right, we you pay a sustainability fee. And then we issue a certificate for you as Justin Goldston for your ride with a co2 and how much money you paid into which product is going. Last year, it was a, it was like more than 300,000 transactions of certificates coming from that. And that's only for b2b. Now, it's we are doing it for every single transaction of Canada. We did same thing with Santander Bank for credit cards. So now with MasterCard and Santander we made a project where it is already live in Spain, now to Portugal and to to Brazil. And worldwide. When you pay with your credit card, we calculate the payments with your credit card, and you can offset it. You can offset the same thing with gas stations when you refuel your car, same thing for cargo, shipping, transportation, any any other sector that you may imagine. And that's why Shannon is targeting the airline sector. We provide transparency and traceability through the API to all the airline commerce

08:19
entries. Interesting. So,

08:21
so you got some that's got some interesting stuff going on. So what So what type of response have you been receiving from, from businesses, from consumers? And if possible, you know, what, what type of feedback have you been receiving from policymakers,

08:42
you know, on this solution? Well,

08:46
okay, going for different users in b2b is been some very strong work of evangelism evangelizing from the beginning. So we started in 2018. But our first customers are starting in 2019. Within the start in the best country, like Spain, it was not the like the most mature market France was more advanced in sustainability, Nordic countries Germany, but we lead the way of transport led the transformation in Spain towards sustainability companies that now they change the narrative in the market, like companies understand better sustainability, they have some regulations going on in Europe, as you know, they are like reporting regulations and all that. So companies are open to do this, they have targets of becoming net zero before 2050. So they have to offset they have to buy this project. So what we provide is a tool, you know, the two year offset but offset generating positive impact, which is what I am trying to pursue, right. I don't want you to make greenwashing of what you're doing I mean, I want you to generate impact on what you're wanting the money you understand. So companies are very receptive. And now we want To do the same we did in Spain and in the other countries we are present like we just acquired. We just enter in a new market in Germany, Switzerland, in Austria, the dark region, and we reincorporate, we are just Corporation now. So we are, like growing and building our forts in the country. And so that from the perspective of b2b b2c, as you were saying before, he needs to be a little bit more educated on why to buy offset, because there is a lot of misunderstanding, there is a lot of not ignorance, but not too much knowledge on why they are officers needed. I mean, and I always put the same example if we as as three, we go, and we reforest, we make a reforestation, we have to put our money right at work. If we go to the bank, the bank is gonna say, how are you going to pay me back? Are you going to sell the booth of the trees? How are you going to pay me back. And that's why the carbon markets are so good, because that's a collateral that you can use to fund your project. And then you receive money for doing good for the planet. That's, that's the beauty of the carbon markets. That's why they should be useful if you do it properly, because there are people that obviously like in any market in any business, they do bravery. We saw in the TV in the news people, conservation areas that didn't need to be conservative, there was a hunting area of a friend, there was a say, I'm not going to make a little bit of money here because I have these trees that do not under any threads. And they just started to generate resolve that. So that's why new tools new blockchain is important for these because provides transparency, and new tools are coming to say this proof is generous current praise, but is generous current grades, because so because it generates impact. And that's why the end user needs to be educated. I agree. And I think that the mindset of all of us has changed a little bit more after COVID. So people, I don't think there are too many, I mean, the percentage of deniers of climate change are being reduced are coming down every time more. Because I think that we all know that something is wrong, right? And, and, and at least what we want to say, let's do something about it right? Every time more. And if I can round up my food chains. When I buy something, and I put that money towards the climate. That's not to paint too much paint for me. And I'm doing I'm doing a good thing for the planet. And institutionally as the third party we're asking, in terms of the institutional and the governments and all that we've been having a lot, we have a lot of good acceptance by governments, especially in Latin America, where we closed an agreement with 35 countries to generate regenerative agriculture projects. So we are working with an organization called ICA, which is a sequel for agriculture. So we will be issuing carbon credits for regenerative agriculture, for rice for cocoa, coffee and for cocoa in the coming years. And we are doing prayers also to because we don't want to be only like the the trader or like the marketplace where to trade, we want to pause projects that need funding at the origin. Because maybe they don't have the money to generate the carbon for this to be sold. And later, they need to find you and usually so climate trade you can impose and you can invest employees that are in the initial stages, as well.

13:28
Very interesting. So So do you think so?

13:33
You know, that's my thought. It's my thought that, you know, if we educate the consumers of the importance of this, you know, they're going to provide additional pressure for these organizations to use to use solutions, such as carbon trade, climate trade,

13:50
because the consumers aren't going to be the users

13:57
of a lot of these a lot of these solutions like carbon offsets and things like that is going to be the organization's but the consumers are going to be the drivers to force organizations to do it right. Now, so what's your what's your thoughts on that?

14:13
No, look, I think that there are companies that are doing great on up play applying, like their solutions to the to the end users and I proved yourself the other day I was we work with three companies that provide plastic, they get out of the ocean, and they call it plastic prints, but they don't leave they just don't sell the plastic credit they use that plastic making products. So they are making furniture, they are making like like tables, they are making like benches, they are making chairs, they are making different things with that plastic coming out of the ocean. You buy the carbon UI, the plastic credit, but then the company is using it to produce products, which is great, right? So there's a whole Circular Economy. So we want to try to do something similar with the carbon credits here, right? So imagine at this point, there are different initiatives. And I put you, for example, the other day, we were talking about a, I was my runner, so I want to normally use, I was using Nike shoes. And I went the other day and say, well, lately, they're not that comfortable, I need to maybe change and I went to the store, and I saw that Adidas, were all made with plastic out of the ocean. And they were really looking very nice, super comfortable, and at the same time was plastic of the ocean, boom, I change brands like that. So Nike, now has two or other brands are gonna say, Okay, I need to follow this trend. So we are changing with our like consumers changing the way that the market works in the decision, because they are prosumers they are not consumers, they are prosumers. Now they decide they they make the companies to to make decisions based on that right. So I think it's really relevant that that we put all connected like that see require economy in our in that something is happening?

16:20
Yes, ESP is created journal article title from a prosumers. I like that. That one that was pretty awesome. That was pretty awesome.

16:29
So So you know, what? So

16:33
based on what you've seen, based on what you've seen, what do you think will be some of the some of the drawbacks and challenges for the tracking and tracing of, you know, carbon, and let me let me back up backup and backup and backup. So going back to going back to what you said about about the issues and how we can use carbon. Deborah doe, in a previous interview said that, you know, some organizations are in the early stages of capturing carbon on trucks and create those, you know, carbon blocks is expensive now, but they're just trying to just gauge it out, like carbon blocks, and they're gonna take that carbon that trap carbon, and they start to build buildings with it. Right? Right. Yes, it might be three or four years for that, but and we're in early stages now to track all that carbon from all these trucks and do that. So that's just one thing, you know, as compared to the shoes.

17:19
Would you? Go ahead, sorry.

17:22
Oh, but no, go ahead. Go ahead. response. I have a question after that. I

17:27
know, look, we are working with a company coming from the MIT friend of mine who is an MIT under 35. He created a carbon capture solution with micro algae is patented. So he modified genetically the algae, so it keeps the co2 nitrogen and suspended particles. suspended particles are more important even imagine a methane you know, small contaminant, that co2 suspended particles are some of the causes of the biggest health problems in the series, right? Because it's what you breathe. So these trees capture co2, like 365 natural trees, you put them in the industry, it's in the places that you cannot put the trees. And then you get the tubes out of microbiology, there is a reactor that makes brings the air through that the algae makes the process of photosynthesis, it grows. And every three months, you take off the tubes, you take the algae, and you'd make compost for the plants. So imagine I mean, there are processes like in New York, people don't know New York City has a program that is forcing every restaurant, the rest of the food has to go to a program that they pick up every day, and they make compost for the plants for farmers. How much waste do we throw out of the restaurants in Miami, in Florida and everywhere? That goes to generate methane emissions in a big scale? Amazing, no. So what our why don't we get that good practices, and we get solutions that can be circular economy for all of us. And that's something else. So we the algae is another another thing, but imagine what they're doing now with him is a super catch carbon capture in plant that we are working on a new methodology for that. And you get the head and you can create hempcrete you can build hempcrete for the houses, you know. So I mean, there are whole a lot of things like the co2 You were talking about. No, I mean, that's that's exactly the type of things that we have to be doing.

19:34
All right. Yeah.

19:35
Thanks for that. I have a I have an hour and a half to discussion on those types of things. But what are what I would say my last question would be, you know, what are the drawbacks and challenges to tracking to tracking carbon emissions carbon offsets carbon credits on the blockchain based on what you've seen, given that you all have, you know, began this process began this journey.

19:58
Okay, that's that's, that's a that's A good one and a complicated one. But to go in deep, but basically, you know, we have a lot of IoT devices that are coming out different satellites, drones, and let's say tools to analyze the, the soil in different components. So I mean, at the end, we have the good part we have a lot of electronics and are often Knology that we can connect to each other. We have digital MRB, we build the first digital MRB worldwide and last year, the same time than other days. A good friend of us is doing a great job on the general RV. We created one we connected to a registry, we include a certification combiner middle and we created real time carbohydrates from solar, it was a POC, because but we did it with solar plant because you had a smart metering there, we created real time carbon credits, we certify we register them, we bring them so on primer three, they were they were sold in immediately and canceled in the registry and issued the certificate. So there are a the beauty of these is everything was blockchain traced the whole process. Since since generation from the smart from the plant, it was a solar plant in a lake in Spain. So we got all the data from the regenerating carbon plate everything in real time. And it was sold in real time at the same time. So what I'm trying to say there are tools that we can use the challenges that you are that you're mentioning, is like how do you make that repeatable? Right? Because, as you know, Blockchain is great. But I mean, the data that you put in blockchain, it has to be reliable, it has to be portable, right? Because if you put a data, there's no reputable. Yeah, it is public, but it's not good data. So the good source of data for for for for being in the blockchain, it is if it comes from a device, or something that is providing good data at the end, right? So if you have a smart metering in a solar plant approved by the state, government, county, whatever it is, that is has that the Smart Metering has all the technical approvals and certifications of the market. Why do I have to doubt of that data that is smart metering is providing? Then if I put that data in, in blockchain, that data is correct. I don't need someone to go to test it because it was tested before making the solar plan. Right. So the data is accurate. That's the type of data it so that's the type of challenges who is one who is the one that is deciding which data is good, which data is not great. So it has to be the technology, the IoT devices and all that that we are using. But there has to be some frameworks or at least some guidance, some guides from organizations. That's why come up different organizations like reporting, who tells how to report is it the government, now there is Task Force worldwide this year, the FCD telling Task Force for climate disclosure, that they say, okay, or CDP carbon, because they have to, it has to be like this, and people will start to use the same way of reporting. Now, they come by at some point, the government will tell you it has to be like this now, like the European Union, for example, you have to audit all their regulation. But yeah, I mean, we need that because if not you and I, we can go and say, Okay, I'm putting this data, it is accurate, because I say so no, I mean, you cannot be judging parts. Right? You have to be one thing or another, right? Yeah,

23:44
no, have you if I

23:45
explain myself?

23:47
You did, and like, so that was one? That's the one question that I've had for a very long time. How long do you think is gonna take? Well, we do have one? Yes, we do have standards. You know, we Yes, we do have frameworks. But how long do you think it's going to take until we have one standard for all these standards come together? And say, okay, yeah, this is the one we're all gonna go with.

24:11
It won't be one a standard in my opinion. I mean, I think that it will be a Well, under standard of process. With the minimums, of course. I mean, that's why the task force for voluntary markets it was created. So the CCPs I mean, they are trying to bring up like a whole let's say, come on. Process Come on, rules for everyone to use. So more and more standards are coming before you were five. There were five now more coming to the ground and more technologies, generating carbon credits, and they don't have any standard they have just the blockchain but it is certified by someone. But it is not a standard. It is an A standard of process right how to guides the guides. somehow to proceed with that. So I think that will be minimums to be reputable. And whenever you you follow that, and you are you have that minimums of, of what a carbon credit has to be. Yeah, I mean, that can take, I mean, we are already working on that there are a lot of initiatives. So I wouldn't I wouldn't say a number of years. But I mean, there are already carbon credits being generated that doesn't have any standard behind it. Just pure in blockchain. Right. You mean generated from the source? We did it last year, and there was not understand that behind was a certification company, but it was all electronically made. Right. So yeah.

25:44
Excellent. So yeah, that was that's all that's really all the questions that I had, um, do you have anything else that you would want to add, you want to let people know about, about about climate trade?

25:58
While I mean, that we are super excited to to be now growing and accessing the US market with all the corporations here, helping them to understand like that, I mean, not only this about like, offsetting is not something boring, and that they have to do because they have to do it is something that can generate a positive impact then be something very good for their organizations, in terms of supporting projects. And at the same time, at the same time, the consumers are going to be the ones that are going to be valuing a lot that that the force that they are doing now. So we will provide all our expertise and our technology for the companies to be able to do something that matter for the planet.

26:45
Excellent.

26:46
Excellent. So thank you all once again, Chief Chief and framework can everybody find you?

26:54
So, yeah,

26:56
I'm, I'm located on Florida, in Florida. But anybody that's interested in meeting with me, and I'm meeting with as many aviation folks from airlines and aerospace and airports, as I can between now and the aviation festival in Miami, that's coming up in a couple of months. So trying to set up as many meetings as possible, please email me, I'm Shannon dot cherry at climate trade.com That's sh A N N o n.ch, e r r EY at climate trade.com and or find me on LinkedIn and I'd love to connect with you and, and friend as well.

27:44
Likewise, likewise, in my case, I'm in Florida as well. It looks like we are in the birthplace here but now we are in

27:53
and but like my emails from dot Benedito A, B E and EDI to at climate trade COMM And also in in in LinkedIn is like good way also to find me and yeah to look at the marketplace as I told before market dot climate free.com and let us know any any concern with any sector, any doubt any, any concern that you have and how you can bring your company in the right way towards sustainability.

28:23
Alright, thanks a lot for

28:27
that. And I do just yeah, I'll try to include all that information within within the within the description and the comments on this video. And I once again, thank you, everybody, and until next time.