Interview with Callirius: Nature as an Asset Class
As one of the assignments of the ReFi Talents program, I did an interview with Tim Schuldt, one of the co-founders of Callirius. They enable financing for high-impact nature-based climate solutions.
Mahsa: Would you please introduce yourself and tell us how did you end up in the ReFi industry? what is your story?
I’m Tim, one of the co-founders of Callirius. With over 20 years of experience in investment banking, my interest in technology, particularly in blockchain grew since 2017. Eventually, I discussed with like-minded friends the idea of stepping out of our banking comfort zone. We were keen on something involving blockchain and tokenization.
After exploring options, our banking background led us to notice a significant need, especially in the ESG segment, specifically related to carbon and climate change. Recognizing an opportunity to make a positive impact, we decided to venture into ReFi.
Mahsa: How would you explain your project to your grandma?
Explaining blockchain-related concepts can be challenging, but I’ll give it a shot. Refi, in particular, is unique. To simplify, we facilitate the redirection of private investments into the carbon industry. Essentially, we fund projects actively removing carbon and carbon dioxide from the atmosphere. Our goal is to combat and eventually reverse climate change. While the topic is intricate and goes beyond these basic terms, at its core, we aim to support projects involved in carbon credit and carbon sequestering.
Mahsa: When was the first moment that the idea of Callirius came into your mind? why?
There was a pivotal moment for us, that Aha moment, when we questioned why a piece of wood is more valuable when dead than alive. A living tree generates significant value, not only for the owner but also for the world and the climate. This realization fueled our decision to focus on ensuring nature is valued not just as a finished product but as a living entity. It inspired our slogan: “We want to make nature an asset class,” something as commonplace to trade and invest in as stocks, bonds, or commodities.
Mahsa: What problem is Callirius solving?
explaining the complexities of the carbon credit industry can be challenging. Over the past 12 to 18 months, the carbon credit industry has faced scrutiny due to discrepancies in project valuation. While the fundamental unit is a ton, prices for projects, ranging from avoided deforestation to direct air capture, vary significantly. Journalistic investigations have revealed instances of overstatement, particularly in red plus projects, casting doubt on the industry.
This skepticism has led to increased scrutiny from regulators, corporates, and the public, with concerns about greenwashing and the credibility of voluntary climate change initiatives. In response, our team at Callirius is addressing these issues. First, you’re implementing a stringent due diligence process to ensure the credibility of projects featured on your platform. Second, recognizing the uncertainty in future carbon credit prices, you’re developing an investment fund. This fund allows companies and investors to invest today in high-quality carbon projects, securing predictable costs for offsetting future emissions.
By bridging the gap between the time needed for project impact and the immediate financial needs of projects, Callirius aims to ensure a steady flow of investment into climate initiatives. Investors receive carbon credits as a dividend, aligning financial incentives with the goal of combating climate change. These initiatives aim to instill confidence in the industry and provide a practical solution to financing challenges.
Mahsa: Can you name some of your competitors? What makes your projects stand out among your competitors?
Callirius operates two distinct business lines. The first is the Project Portal, a platform where users can purchase spot carbon credits, invest in specific projects, and engage in the carbon credit marketplace. In this realm, there are existing competitors like Aircarbon and Ceezer, but Callirius distinguishes itself by focusing on premium, high-quality offerings. The emphasis is on a stringent due diligence process to ensure the projects on the platform meet elevated standards.
While there are comparable marketplaces, Callirius stands out through its commitment to quality and the avoidance of lower-quality projects. The second business line involves the creation of an investment fund, a unique proposition in the current market. This fund addresses the gap in carbon credit pricing uncertainty for companies and investors, allowing them to invest in high-quality carbon projects with predictable costs.
Callirius actively advises its clients on making accurate claims regarding their carbon neutrality efforts. The company emphasizes the importance of effective communication and offers consulting services to guide clients in articulating their sustainability initiatives accurately. While projects on Callirius Project Portal may be relatively more expensive, the focus remains on quality and credibility, providing clients with assurance and preventing accusations of greenwashing.
Mahsa: Is there anything else you would like to share about Callirius?
In conclusion, as we build something entirely new in an industry that hasn’t seen such initiatives before, securing investors for our funds is crucial for our company’s success. initially, when we entered this industry, some companies viewed us with skepticism, questioning the intentions of individuals with banking backgrounds. However, over time, people have come to realize that coming from a bank doesn’t automatically imply a focus on short-term profits. As a company, we prioritize long-term sustainability because addressing climate change requires business models with a lasting impact rather than quick fixes.
Mahsa: What do you think about the synergies between the blockchain technology and ReFi?
In essence, we are just scratching the surface of the potential synergies between blockchain technology and our regenerative finance initiatives. Currently, our use of blockchain is somewhat limited due to the slow adoption on the corporate side. However, we see immense possibilities, especially in a sector like ours, where blockchain can bring significant value.
One crucial application is the tokenization of products, enabling easier and automated trading. Dealing with carbon footprints in smaller units, less than one ton, becomes feasible through fractionalization and automation. This is a compelling use case for blockchain technology. While onboarding with existing marketplaces can be costly and challenging due to barriers to entry, trading with tokenized products offers a more accessible route.
In the voluntary carbon market, registries play a pivotal role, acting as centralized layers of trust for credit ownership. We envision a shift where carbon credits don’t require separate registries but are directly generated as tokenized products on the blockchain. This vision relies on transparency, a key factor in ensuring the quality of carbon credits. Blockchain’s open public ledger, which is immutable and transparent, presents an ideal solution for verifying and ensuring the quality of carbon credits.
The concept of Digital MRV (Measurement, Reporting, and Verification) involves tracking and reporting data on a public ledger in the blockchain. This would enhance transparency and provide a robust system for measuring the impact of carbon credit projects. Looking forward, we are exploring the possibility of eliminating the need for traditional registries. Instead, companies could issue their own carbon credits, backed by transparent records and proper auditing.
Considering the ERC-20 token standard, which is a widely used token technology, as a potential avenue for issuing carbon credits, could further streamline the process and reduce costs, particularly for smaller projects. While there is still much work to be done, we are enthusiastic about spearheading these advancements in the intersection of blockchain and regenerative finance, recognizing that we are only at the beginning of this transformative journey.
Watch my interview with Callirius on my YouTube channel:
About Crypto Diva
I’m already in the Future… Meet me there! Blockchain Technology is my passion and I have dedicated my career and research path to DeFi. My ultimate goal is to encourage more female professionals in the DeFi industry.
As the Sales and Marketing Manager of coinIX , I’ve got the privilege of being in close contact with Blockchain investment firms, as well as the innovative web3 projects which are creating the foundations the future financial world. I love to make the impossible possible and i’m willing to go the extra mile for that. Be my companion in my DeFi journey and I’ll show you everything.
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