Carrot Network is run by the Carrot Foundation, a non-profit Swiss foundation. Our team is headquarted in Brazil, with our initial launch country also being Brazil.
Carrot is a blockchain network whose mission is to accelerate the transition to a resource-efficient, low-carbon and inclusive circular economy by scaling recycling rates to upwards of 90% in our focus countries within 10 years. By doubling the current circularity rate, we could address 85% of global GHG emissions reductions needed to stay below 2 ºC (Circularity Gap Report), making the circular economy one of the most effective solutions to combat climate change.
More than 82% of everything we produce and consume is buried dumped or burned, yet 90% of it could be reused or recycled. On top of that, poor resource management is responsible for 45% of global GHG emissions.
Carrot provides a globally scalable and economically practical solution to increasing circularity rates. Our dMRV technology meticulously tracks waste through the recycling supply chain, certifies recycling, and mints the associated recycling and carbon credits via peer-reviewed, third-party methodologies. Upon credit sale, revenue is automatically distributed to the recycling participants whose circularity work led to the creation of each individual credit, completing a transparent value flow loop.
Credit sales place a value on environmental work, recycling by waste type, and avoided carbon emissions (from recycling instead of extracting and processing raw materials). Automatic credit revenue distribution acts as a direct investment into recycling infrastructure and incentivizing increased recycling participation –– bridging the gap between the cost of recycling versus landfilling, which is paramount to leading (with a Carrot and not a stick) the transition from a linear to a circular economy.
As our network of recyclers and recycling service providers grows, so does their aggregate up-chain reach and incentive to onboard Waste Generators (businesses or individuals who produce waste). If the waste generators are identified in a supply chain and have properly sorted waste, the associated recycling credit sale then distributes a portion of revenue to the waste generator. Additionally, when Waste Generators are identified, revenue distribution is also then increased to all other down-chain recycling participants, creating another potent incentive mechanism for down-chain participants, such as haulers and recyclers, to onboard their waste generators, leading to increased sorting rates, fully digitized supply chains, and greater depth to the data embedded within each credit. Properly sorted waste is paramount as it drastically reduces the costs of recycling, and in many cases, the sorting of waste is the primary factor in whether recyclable materials end up being recycled or simply landfilled. These sustainable incentive models, coupled with Carrot’s technology, create the foundation for system change in the waste industry and transitioning to a circular economy.