Cabify leads the way in offsetting CO2 emissions with blockchain

Cabify leads the way in offsetting CO2 emissions with blockchain 656 420 Climatetrade
  • The ridesharing company announces its alliance with ClimateTrade, an international leader in efficiency and service traceability on carbon neutrality.
  • Thanks to blockchain technology, Cabify takes a step forward by digitalizing, tracing, and ensuring transparency of both the offsetter and the environmental projects.

The multi-mobility company Cabify, the first and only carbon neutral operator in Latin America and Spain since 2018, has today announced it is boosting its environmental commitment with the pioneering solution of blockchain technology for carbon offsetting and the international expansion of the scheme. Cabify teams up with Climate Trade, leading fintech in Blockchain marketplace development for carbon footprint offsetting.  Road transport accounts for 11.7% of global GHG emissions and urban centers generate 70% of them, according to the International Energy Agency and C40 Cities: cities are therefore instrumental in the solution for climate change, which crucially requires taking steps towards decarbonization of mobility.

As of 2018, Cabify is the first and only company in the field to offset 100% of generated emissions (carbon neutral), not only by its operations but also from riders and corporate clients’ journeys taken in Europe and Latin America, having maintained this commitment for three consecutive years.  During this time, Cabify has offset more than 310 thousand tons of CO2 via environmental protection projects, which equals protecting 12 million trees in the Amazonian Rainforest or avoiding 280 journeys by car from Buenos Aires to São Paulo. At the same time, the company is making progress in the reduction of its emissions and the drive for the electrification of its fleets in 2025 in Spain, and in 2030 in Latin America.  

  • Focused on the environmental protection and the promotion of renewable energies, Cabify announces its involvement in new high-value offsetting projects in Brazil, Peru, and Chile for planetary health.

The projects to avoid deforestation in the Peruvian Amazon; waste management and renewable energies in Brazil; and forest biomass in Chile for energy co-generation, water pollution prevention, and forest fires risk reduction, are articulated by a fund traceability system via blockchain which guarantees full transparency of the process.

“These complex times that countries, cities, and communities are experiencing do not slow us down. On the contrary, they push us more than ever to move decisively towards sustainable urban mobility models. We maintain our progress and commitment to fleet electrification while we ensure making, though the right projects, a positive impact that goes beyond the carbon neutrality we reached three years ago, and also tackles enhancing socio-economic development of the communities we are part of,” said Juan de Antonio, Cabify’s CEO and Co-Founder. 

Decentralizing the offset is a key element in making a direct positive impact, not only on an environmental protection level, but also for socio-economic development, and local green job opportunities in the communities where Cabify offers safe, sustainable, and accessible ridesharing options. Besides, these programs integrate, and have a direct impact on several United Nations Sustainable Development Goals (SDGs) such as Climate Action (13), Life on Land (15), Decent Work and Economic Growth (8), Partnerships for the Goals (17), and Reducing Inequality (10).  

Cabify will soon activate an API integration (Application Programming Interface) and an individual traceability system so that riders and companies using the app can track, for every ride, the carbon footprint emitted and offset for them by Cabify.

Since 2018, Cabify has been a member of the United Nations Global Compact, and it has aligned its sustainability strategy with the 2030 Agenda, and with the United Nations Sustainable Development Goals, with the strong commitment to the European Union Green Deal, which lays the groundwork for the region to be carbon neutral by 2050, and aims for a 90% reduction of GHG net emissions. 

“From ClimateTrade we aim to complement Cabify’s leadership in sustainable mobility, and generate the greatest climate impact through the contributions of its clients. This alliance will provide transparent accreditation of the company’s carbon neutrality, generating a unique tandem in the international context to improve global health,” said Francisco Benedito, CEO of ClimateTrade.

Cities: the focus of efforts for planetary health 

ClimateTrade’s ecosystem aims to tackle climate change and poverty, supporting local development, and generating a positive impact on our planet. The main advantage of this fintech company is the usage of blockchain technology, which accelerates and simplifies transactions with absolute traceability, security and transparency. In this way, it guarantees that the funds invested in the carbon footprint offset are reaching the source. Climate Trade works with projects which are verified against the highest global standards, such as the Clean Development Mechanism (CDM), Verified Carbon Standard (VCS), and Gold Standard.

On June 5, World Environment Day, the United Nations Framework Convention on Climate Change (UNFCCC) launched the ‘Race to Zero’ which seeks to guide cities, regions and companies towards climate neutrality. Digitalizing calculations for the traceability, and offset of emissions places Cabify as the leader in carbon neutrality projects transparency, and allows for a quantifiable positive impact on cities, while they develop their Low Emission Zones (LEZs), Clean Air Zones (CAZs), and more sustainable ridesharing models. 

The Carbon Neutral Cities Alliance showcases the most ambitious local efforts across the globe to eliminate up to 100% of emissions by 2050. Today, 55% of the global population, about 4.2bn people, live in cities and urban centres. By 2050, this figure will rise to 70%, according to the UN.Making progress in planetary health with a multidimensional approach not only reduces disruption to ecosystems and their exploitation but also protects us against pandemics such as COVID-19. According to Dr. Peter Daszak, Chair of the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) workshop, “the same human activities that drive climate change and biodiversity loss also drive pandemic risk through their impacts on our environment. Changes in the way we use land; the expansion and intensification of agriculture; and unsustainable trade, production and consumption disrupt nature and increase contact between wildlife, livestock, pathogens and people. This is the path to pandemics.”