🌳Interview with JaapNL
Interviewer bigjimmyonx
Could you share about your background and what motivated you to start Carbify, particularly with its unique approach to using blockchain for environmental conservation?
Background:
My name is Jaap Harmsma, a 48-year-old entrepreneur from Friesland, the Netherlands. I have two children, aged 14 and 16, and I am married to a beautiful wife called Mirjam. This will be an important detail for this question :-)
I have been an entrepreneur since I was 19. After selling my hosting business, which I developed into a market leader in advertisement hosting and game hosting over 20 years, I started to explore cryptocurrencies, particularly blockchain technology, due to the fact I had to sign a two-year non-compete clause during the company sale. That’s when I began mining Bitcoin from my garage with about a dozen self-built mining rigs. It was also during this time that I started writing, including Satoshi Nakamoto’s Bitcoin whitepaper. "Bitcoin Whitepaper for Dummies" to make the complex original whitepaper more accessible. I also wrote numerous articles about various projects. This period allowed me to delve into particularly the positive aspects that blockchain has to offer. I appreciate solid use cases, tokenomics that strengthen a project, and transparency and visibility.
I soon met Toby Wagenaar through Vulcan Forged, as well as William ten Zijthoff, who at the time was an important partner. Toby was my direct colleague, and we later found out that we lived only about 10 kilometres apart :-)
Motivation:
For years, I held two significant feelings.
A terrible feeling about the deterioration of our climate and the lack of solid applications to find solutions. When it comes to addressing climate change, a vast majority of initiatives are ineffective or even harmful to our climate. There is hardly any transparency, and a capitalist approach unfortunately dominates. There are a number of companies becoming extremely wealthy at the expense of our planet (even those claiming to be non-profit). That needs to change! I want to leave my children with a livable planet instead of a completely devastated one. This has become an important motivation for me.
Capitalist thinking: The influence of capital and the damage capitalist thinking has inflicted on our planet is enormous. Billions are made at the expense of the climate, environment, and our planet. It must be possible to combine a capitalist approach with a social and sustainable approach, right? If an approach like that were combined with a hyper-transparent solution (this is where blockchain comes in), then you would capture the best of three worlds. :-) This is essentially the core of Carbify. We are not climate knights, and we do like to make money for our community members, but we do provide THE solution.
I have long wanted to establish a strong and unique use case for blockchain. This is in light of how crypto and blockchain are often portrayed in the media. The blockchain world deserves better, as there are some amazing projects that truly make a difference by applying blockchain technology. Carbify is, of course, a very good example of this.
Together with William and Toby, we were able to translate the above into a very successful company!
What specific gaps or challenges in environmental sustainability did you aim to address when founding Carbify?
Carbify is currently focusing on the issues in the voluntary carbon market, which include several major problems:
Lack of transparency and traceability, or their complete absence. Issuance of carbon credits while the CO2 has not yet been absorbed. Often, credits are issued for 20 years in advance, which is incomprehensible to Carbify.
Carbon leakage. Claiming that a project provides compensation while it causes higher emissions elsewhere.
Additionality: This principle states that a carbon credit only has value if it leads to a reduction in emissions that would not have occurred otherwise. Many projects struggle to demonstrate additionality, undermining the effectiveness of carbon compensation.
Sustainability: Some companies are protecting forests in the short term for which carbon credits are issued, only for them to be exploited after issuance. Also, reforestation projects that face issues like (illegal) logging or wildfires.
Regulation and consistency, or the lack thereof. A standard must be established that ensures high-quality offsets. Unfortunately, this does not yet exist, causing many providers to make mistakes, either knowingly or unknowingly. For customers, it’s almost impossible to make the right choice because of the lack of transparency.
Harmful to habitability.
In recent years, numerous projects have proven to be fraudulent, including some of the largest ones. For example Southpole. The British newspaper The Guardian has investigated the market and, based on a six-month study, determined that 80 to 90% of carbon credit projects do not provide additionality or proved to be fraudulent, often by cleverly using carbon credit rules.
Carbify undeniably solves all the problems currently plaguing the carbon credit market in a logical but also innovative manner.
Transparency and Traceability.
Our agroforestry systems (biodiverse reforested plots) include not only a variety of plants, ground coverage, trees and bushes but also so-called hardwood trees. We geo-tag these trees. The data of the tree, such as the type, planting date, start date, etc., along with this geo-location, are used to mint an NFT called the NFTree. The above data is in the metadata of this NFT and can never be altered. After about a year, these trees will start generating carbon debits, a working alternative to carbon credits.
Once CO2 is converted into carbon, the NFTree will distribute $aCO2 to the owner. $aCO2 is an ERC-1155 crypto token and can include metadata because of its nature. 1 $aCO2 equals 1KG of CO2 absorbed from the air. This is tracked at the tree level by the blockchain. Each tree acts as a separate financial entity, all on-chain. By comparing the data deposited with the United Nations-validated registry with our immutable on-chain data, there is undeniable proof for every KG of CO2 that is absorbed. And this data is publicly accessible 24/7. Carbify offers the most transparent and available carbon administration in the world.
Carbon reduction certificates sold by Carbify show every KG by specifying which tree absorbed this KG.
Future Promise.
Carbify only issues carbon debits based on CO2 that has already been absorbed. It is not a future promise.
Carbon Leakage.
Our projects are planted to remain forever. In addition, all emissions (such as the use of a tractor or the fruit being harvested and consumed) are deducted from the total amount of carbon debits generated by the projects. How we do this is publicly available and can be reviewed by scientists.
Additionality. Our projects only issue the carbon debits that are seen as 'additional'. This is also described in the carbon standard, which is publicly accessible. Moreover, we issue fewer carbon debits than actually occur and do this for a maximum of 20 years, while the ecosystems last much longer than 20 years, usually even indefinitely.
Sustainability. We do not protect existing forests and request credits for them. We do not believe in this. We reforest in places where no trees have stood for at least five years. Only reforestation provides additionality.
Regulation and Consistency. Our methodology could become the new global standard. Something we are actually discussing at the European level.
Various institutions have already referred to the solution developed by Carbify as THE solution and the new standard. We are currently in discussions with various parties to realise our dream of becoming the new global standard.
What was the initial vision for Carbify and how has it evolved? How have your goals expanded with the company's growth?
Our vision aligns quite closely with the best case scenario that is currently unfolding. We especially want to make a very large impact with our planting projects. That has already been successful. Although we aim to eventually plant 100+ million trees. The crypto part of Carbify is also starting to take shape nicely. In that respect, we are more than satisfied and will continue to build. Our goals have not really been adjusted since the beginning of our project. We are well on schedule!
Could you describe some of the unique challenges Carbify faces in integrating blockchain technology with environmental projects?
The way we provide transparency is more complex than you might think. Because we effectively maintain a separate financial ledger for each tree on the blockchain, we make quite an impact, especially as we grow to 100+ million trees.
Our real challenge is to make all this fast and affordable. Polygon has not been kind to us so far, as claiming $aCO2 and selling $aCO2 can be quite costly for users, not to mention creating carbon reduction certificates. That's why we have been in discussions for some time with a professional team behind one of the most well-known blockchains currently. Together, we are going to build a Layer3 that will tackle all these problems. We are looking forward to that! The chain is already live in test mode.
Another challenge was rolling out a multichain solution for our NFTrees. We have also found a partner for this who helps us technically and provides Carbify with a financial injection.
As the CEO of an environmentally-focused tech company, how do you balance technological innovation with ecological responsibility?
At Carbify, we believe in being clear and direct. We focus on creating real solutions for environmental issues, not just making big statements or glueing ourselves to highways. We take our responsibility seriously and always try to make the most environmentally friendly choices, but we know we're not leading the entire industry in this respect.
At Carbify, we reduce our impact on the environment by using our own $aCO2 debits to offset our carbon footprint. This means we help reduce the amount of carbon dioxide in the atmosphere by balancing out what our company produces.
Personally, I also try to do my part. I've been reducing my own CO2 emissions for several years by using solar panels, driving a hybrid car and offsetting my footprint by buying offsets. These actions show that I live by the same values I set for my company.
Our goal at Carbify is to make sure our technology not only advances but also respects and takes care of our planet. This is how we make sure our innovations are responsible and helpful for the environment.
How does Carbify foster a culture of innovation, especially in a field that combines technology with environmentalism?
At Carbify, fostering a culture of innovation starts with our commitment to both technology and environmental sustainability. We encourage our team to think creatively about how to use technology not just to advance our business but to improve the planet. This means we often look for solutions that are not obvious, pushing the boundaries of what's possible in environmental technology.
Can you discuss a pivotal project or moment that reinforced your commitment to Carbify's mission?
A very important moment for me was certainly when I discovered how the carbon credit market currently operates, which is largely fraudulently. Certificates are sold that are essentially equivalent to owning meme tokens to make a comparison with crypto. The impact is literally zero, yet companies are buying these certificates en masse. This really needs to change. I do notice that this realisation is starting to penetrate, as the customers who come to Carbify often have already purchased carbon credits and have been deceived by them, and now they want absolute quality.
Personally, I also hope the same will happen with meme tokens. In my opinion, the crypto market cannot transform quickly enough into a more serious, technology-driven sector where use cases come first.
How do Carbify’s various initiatives like NFTrees and the Eco Empires game integrate into your overall vision for sustainable development?
NFTrees are at the core of Carbify since they are directly linked to the trees we plant. Those deliver a sustainable impact!
I think the question of how Eco Empires plays a role in our sustainable vision is a good one, indeed one that many others have already asked. Unfortunately, supporting underprivileged people, increasing social impact, and providing food in underdeveloped areas are not very appealing to crypto communities. While there are people who are willing to donate some money to these causes, running a crypto project on it is simply not feasible. That's why, in addition to having built a very innovative solution that can be seen as an alternative to carbon credits, we have also thought about how to market it.
Our tree staking program helps, but Eco Empires is also a huge opportunity for us to get a large number of people excited about Carbify's goals.
Let's take, for example, one of the biggest lotteries in the Netherlands, the Postcode Lottery. People buy tickets hoping to win a nice prize, but they are indirectly supporting hundreds of charities. That's exactly the approach we have chosen as well. Eco Empires is a super fun game without a 'preachy' element. It will attract many people who will contribute to the main goals Carbify stands for, as $aCO2 and $CBY subtly play a role in Eco Empires, often without most gamers even noticing.
What are the core values that guide Carbify, and how do they influence your operational and strategic decisions?
Transparency is, of course, very important for Carbify. Our solution provides the transparency needed to make the carbon markets fairer. However, being transparent is also a key focus for Carbify as a company. This can be quite challenging in the crypto world and therefore has a significant influence on the decisions we make.
I can give a few examples:
An exchange sets minimum requirements for the number of social media followers a project has. If there aren't enough, they won't list the project. It doesn’t matter whether the followers are fake or organic. So, what most projects do (with a few exceptions) is buy followers. Consider also the requirements for the number of active wallets, token trading volume, and more. Active wallets can be created by doing an airdrop. Volume is managed by employing a market maker to engage in wash trading. Much of what we see in crypto is fake. For a company like Carbify, this is problematic because we do not engage in these practices. We are therefore running a marketing campaign to expose this issue and at the same time to share how we deal with it.
As a company, we want to be honest, transparent and provide working solutions that add value. Especially honesty and transparency are almost daily reflected in our decision-making during management meetings. Unfortunately, we often encounter problems that somehow force us to make concessions in these areas.
So far, we have refused to do so by choosing not to collaborate with certain parties. I believe we are a very rare case in that regard.
In what ways does Carbify differentiate itself from other environmental blockchain projects?
I probably don't know all of them. But those that I am familiar with do not go as far as the Carbify methodology. I have looked at several projects, but I have yet to find one that resembles what Carbify is doing and aims to achieve.
Carbify has developed a carbon standard that has been certified by the United Nations. Additionally, we have planted about 3 million trees so far. Carbify has a live solution that completely resolves the issues with carbon credits. Other projects often focus on just one of these aspects and partially solve it. Carbify is comprehensive.
Moreover, we would certainly support similar projects. A change is needed, and all help is welcome. Additionally, the carbon offset market and tree planting markets are so large that Carbify could never serve them alone.
How important are collaborations with other companies or sectors in achieving Carbify's environmental goals?
Collaboration and partnerships are very important for Carbify, particularly in the web2 world. We require various certifications to do business with certain parties. Reputation and compliance are very important. As improbable as it may sound, Fortune 500 companies are an important target group for us. These companies are often already very advanced in setting their sustainability policies and can quickly do business with us once Carbify meets the requirements. Therefore, the selection is thin when it comes to providers of high-quality carbon offsets and tree planting. And in that category, we are at the very top. This makes us very attractive to these companies.
Therefore, we also collaborate with various parties such as 2Tokens, the United Nations, and Particula. We are actively lobbying to have our standard recognised as the European standard. If successful, that would obviously be a tremendous victory. William, my business partner, is an expert for the United Nations, and I am currently very active within 2Tokens as a tokenisation expert. 2Tokens is a steering group funded by the European Union and the Dutch Ministry of Agriculture to develop standards for various initiatives, including carbon credits. Our model is actively incorporated into this.
As you can see, we are probably not your average crypto project, given that the majority of our business and lobbying occurs outside of the crypto space.
Do you see Carbify doing business with companies like Shell or Tata Steel in the future?
That's an absolute YES. We are already in discussions with Microsoft, a major pharmaceutical company and one of the largest IT companies in the world. Shell or Tata Steel are of the same order and size, so why not?
Don't forget our carbon debits are extremely limited, though. We can only discuss tree planting with most of these companies, as we simply lack the carbon debits to supply what they need.
What actions do you personally take to reduce your carbon footprint?
We compensate our footprint using Carbify $aCO2 offsets, haha. Obviously.
How do you manage investor expectations amidst the volatile market conditions typical of both blockchain and environmental projects?
We are very active within our community on Discord. We hardly have any secrets, and we openly discuss all of our ongoing matters. We don't hide behind non-existent NDAs. I suspect this is appreciated.
Our community is very experienced because a large part of it has transitioned from another crypto project. There isn't quick panic, and they understand the dynamic world of crypto. In that respect, we have little to teach our community, which is very nice.
What key lessons have you learned while leading Carbify that you would pass on to future entrepreneurs in the tech and environmental sectors?
You can do things differently. Even if people tell you, it can't be done.
What future developments can we expect from Carbify? Are there upcoming innovations, projects or partnerships you can share?
We are thinking big at Carbify.
Our first collaboration will be mindblowing in the crypto space. And it will happen pretty soon. The Carbify blockchain will be released together with a huge partner. We will be the go-to chain for genuine carbon offsets and impactful RWA’s.
I have often told our community that we are different from all other crypto projects out there. Our product allows us to collaborate fairly easily with the giants of the world. I have already mentioned a few above. Expect big partnerships and Fortune 500 companies to announce that they will be working with Carbify products. What we are doing behind the scenes might not be known to the general public yet, but it will be soon.
What legacy do you hope to create with Carbify, and how do you envision its impact on global environmental efforts?
At Carbify, we are committed to planting over 100 million trees in a sustainable and effective manner, focusing on reforesting areas that have suffered from deforestation. Our goal is to demonstrate how real-world applications can drive successful crypto projects that not only excel in the coin market rankings but also earn the respect and value of the community because of our tangible environmental contributions.
The legacy we aim to establish with Carbify is to set a precedent in the web2 and web3 space, showing that projects grounded in real-world use cases can lead and transform market expectations. By seamlessly integrating blockchain technology with rigorous environmental initiatives, we are pioneering a new standard for ecological responsibility and transparency.
We envision Carbify becoming a model for how companies can align profitability with sustainability, thereby influencing global environmental efforts profoundly. Our impact goes beyond carbon credits or debits; it's about fostering a systemic change in how businesses address sustainability, inspiring industries across the globe to adopt more sustainable practices.
Through Carbify, we are not just aiming to mitigate the effects of climate change but also to empower corporations and individuals alike to participate actively in a movement towards a more sustainable future. This is the legacy we strive to build—a legacy of innovation, responsibility, and lasting impact on the planet.
Thank you very much, Jaap, for taking the time to answer these questions.
I wish you the best with Carbify in the future and I'm sure it will thrive even more! https://twitter.com/bigjimmyonx
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