Climate change is one of the most pressing challenges today, impacting global temperatures and threatening our natural resources. This complex issue is multifaceted and contributes to a cycle that accelerates environmental degradation primarily caused by increased greenhouse gases (GHGs) from burning fossil fuels, industrial processes and deforestation.
The increase in significant amounts of CO2, methane (CH4), and other GHGs, traps heat in the atmosphere and leads to increasing global temperatures. The consequences include rising sea levels, severe weather events, and ecosystem disruptions which all have global economic impacts. To tackle this challenge, it is essential to reduce greenhouse gas emissions and transition towards sustainable living.
Carbon trading, also known as emissions trading, is a market-based system designed to reduce greenhouse gas emissions. It involves the buying and selling of credits that permit a company or other entity to emit a certain amount of carbon dioxide or other greenhouse gases. Carbon credits and carbon trade are authorised by governments with the goal of gradually reducing overall carbon emissions and mitigating their contribution to climate change.
The concept is based on cap-and-trade regulations, where a limit (cap) is set on the total amount of greenhouse gases that can be emitted by all participating entities. Companies that reduce their emissions below their allocated amount can sell their excess allowances to others that exceed their limits. This creates a financial incentive for companies to invest in cleaner technologies and reduce their emissions over time.
Beyond compliance markets, there is also the voluntary carbon market (VCM). This market allows companies, governments, non-profit organisations, and individuals to voluntarily offset their emissions by purchasing carbon credits. These credits are typically generated through projects that reduce, avoid, or remove GHGs from the atmosphere, such as reforestation, renewable energy, or energy efficiency projects. The VCM offers entities a way to proactively pursue their climate goals, even without regulatory mandates. Verified Emission Reductions, the credits traded on the VCM, adhere to rigorous standards to ensure their validity and environmental impact. This market not only supports a diverse range of environmental projects but also drives innovation in sustainability practices.
EcoNetix is a global asset manager of high-integrity carbon projects. It uses a digital measurement, reporting, and verification process (dMRV) to digitize carbon projects, monitor and track CO2 bringing trust and transparency to the carbon market.
EcoNetix focuses on three main project areas.
How does EcoNetix do this?
Strategy
A challenge the carbon market faces is a lack of transparency, which makes it difficult to gain trust in the carbon market. EcoNetix addresses this problem by using a dMRV architecture utilising (i) software, (ii) hardware and (iii) machine learning / AI technology to automate and simplify the verification process. EcoNetix primarily enables companies and clients to generate revenue from carbon credits. They provide comprehensive services that facilitate the registration, certification and monitoring of carbon reduction projects while receiving a percentage of the carbon credits ultimately registered.
EcoNetix’s Digital MRV Solution
EcoNetix’s dMRV process guarantees transparent and efficient creation of high-integrity carbon credits by supporting carbon offset projects to meet the criteria set by recognized standards like Verra and Gold Standard, making them eligible for carbon credits. They work to ensure that these projects comply with verification requirements, thereby validating and monitoring the credits generated by the projects. The process is as thus:
Founded in 2023, EcoNetix is led by seasoned entrepreneur Jakob Maximilian Zenz who has a successful track record of building and exiting business and co-founded by Paul Nimmerfall and David Salzgeber. Jakob has raised over 5 million EUR in funding in the East African region and operating businesses in 8 countries with successful exits.
Their team is further led by multidisciplinary and diverse professionals that combine backgrounds in entrepreneurship, finance, law, carbon markets, climate technology and international relations. All team members have extensive on-ground business experience in Europe and East Africa. They, therefore, have a deep understanding of what it takes to navigate the unique challenges and opportunities of bridging Europe and Africa and fully utilising the potential of both regions to catalysing climate action.
Since its inception, EcoNetix has made significant strides in environmental projects across Uganda, Angola, Congo, Tanzania, Ethiopia, Senegal and Kenya. Key initiatives include the Blue Carbon Mangrove Project in Tanzania and Kenya, which enhances biodiversity and strengthens coastal resilience. EcoNetix’ projects are on track to capture over 20+ million tons of CO2 over the next decades.
Persistent’s partnership with EcoNetix will provide strategic connections and advisory support to further expand its impact. EcoNetix is set to broaden its project portfolio, reaching more countries and exploring new sectors eligible for carbon credit initiatives. For Persistent, EcoNetix signifies a pathway to a low-carbon economy, reduced GHGs and sustainable practices across Africa. We are proud of their work in bringing back trust and transparency into the carbon market.