Climate change is one of the biggest challenges facing humanity today and lack of monitoring and transparency in climate investments is a significant issue.
Climate change is a multifaceted issue that presents several major challenges, including global temperature rise caused by human activities like burning fossil fuels. Another consequence is the increase in extreme weather events, such as hurricanes, floods, droughts, and wildfires, which can cause devastating impacts on communities and ecosystems.
Additionally, rising sea levels resulting from melting glaciers and ice sheets and the warming of seawater, can lead to coastal flooding, erosion, and saltwater intrusion into freshwater sources. The increasing acidity of the oceans due to higher levels of carbon dioxide in the atmosphere can have a damaging effect on marine ecosystems, and biodiversity loss caused by the inability of ecosystems to adapt to changing conditions can have widespread impacts on both nature and humans.
Finally, climate change also threatens food and water security in many regions, with droughts and floods destroying crops and disrupting food systems, and rising temperatures leading to decreased water availability and increased water stress. The negative health impacts of climate change, such as increased heat-related illnesses, respiratory problems from air pollution, and the spread of diseases by insects and other vectors, also pose a significant threat to human well-being.
A real example of these problems can be found in the city of Manicoré, State of Amazonas - Brazil, where EBCF's main reserves and private properties are located. It's considered the 5th municipality on the deforestation ranking; just in 2021 alone, more than 12,312 hectares were deforested (Guarido et al., 2022). If we don’t change the economic logic, the biggest rainforest will be chopped down.
Moreover, on a global scale, climate shocks are increasing as the world races to become NetZero; many people feel powerless to help - charities are opaque, making it very difficult to know whether donations reach their destination and therefore discouraging people from even trying, and there is a general lack of knowledge on this topic.
Record temperatures are being hit and climate-related catastrophes are enveloping the world. Carbon offsetting is one way to mitigate the impact of climate change, but many new projects lack verification and credibility.
At MetAmazonia, we understand that transparency is critical to ensuring that climate investments are effective and aligned with climate goals. Unfortunately, the lack of transparency in climate investments is a significant problem that undermines the efforts to combat climate change.
One of the biggest issues is greenwashing, where investments are marketed as being environmentally friendly, but are not actually aligned with climate goals. This can mislead investors and make it challenging to identify and invest in truly sustainable projects.
Additionally, lack of transparency can make it difficult to evaluate the actual impact of climate investments. Investors need access to accurate and up-to-date data on the environmental and social impact of projects to make informed decisions about where to invest their capital. Without this data, investors may not be able to evaluate the effectiveness of their investments.
Furthermore, transparency is crucial in assessing the risks associated with climate investments. Climate investments are often complex and require a detailed understanding of the underlying risks associated with the project. Without transparency, investors may not be able to accurately assess these risks, which could lead to financial losses or other negative impacts.
At MetAmazonia, we provide a platform that promotes transparency in climate investments. We believe that transparency is critical to ensuring that investments are effective, aligned with climate goals, and support social and environmental justice.