Blockchain technology has long been a part of the revolution in global supply chain management and the agricultural business. However, as the world continues to face the adverse effects of global warming and the increasing need to change how companies approach natural resources. This technology has an even larger role to play in battling deforestation.
Deforestation is one of the main contributing factors to the rapid increase in the net global temperature. Forests make up an essential part of the flora and biological diversity of the planet. And as industrialization and urbanization set in, deforestation is becoming an evident problem.
Blockchain technology and AgTech can play a significant role in helping slow down the rates of deforestation globally. What’s more, companies and businesses are starting to take notice. And more entrepreneurs are utilizing this type of technology at the very core of their operations.
AgTech helps fight deforestation by supporting the development of sustainable supply chains. Through blockchain technology, AgTech can help business owners and farmers trace the origin of agricultural products, ensuring that they are produced using sustainable practices.
Importantly, AgTech can help boost sustainability across the supply chain through the use of precision agriculture tools. Such as sensor networks, drones and precision planting equipment. These tools can help farmers better understand their land’s conditions and make more informed decisions about planting, irrigation and other aspects of farming. This can lead to increased crop yields and lower production costs which, in turn. Can reduce the need to clear new land for farming, and ultimately reduce the environmental impact of the agriculture sector.
What’s more, as refinements come to the blockchain tech sector, AgTech products are also becoming more advanced. AgTech pioneer Dimitra, a global leader in blockchain integrations in the agricultural industry, is using artificial intelligence, satellite imaging and mobile technology. To help boost sustainability and increase transparency across supply chain management.
AgTech tools can also aid in implementing sustainable farming practices like crop rotation, cover cropping and agroforestry. In turn, these techniques can improve soil health, reduce erosion and increase the overall resilience of land.
This is just one example of how Web3 tools can help to reduce the demand for products. Created through deforestation and promote the use of sustainable products. Not only that, but AgTech also offers traceability solutions that can help companies prove the origin. And end destination of their products in compliance with various local regulations.
The European Union aims to lead the way in terms of regulation and compliance requirements for businesses and producers looking to help combat deforestation. The union’s regulatory body introduced rules requiring importers to provide documentation ensuring that goods brought to the local market are obtained sustainably and in compliance with deforestation regulations.
These regulations mean that the EU is banning the trade of products linked to deforestation worldwide and helping to combat the effects of climate change. Traders and operators have 18 months to adjust to the new regulations. While smaller companies will have two years to adapt. Still, all businesses will have to prove that the products do not originate on land deforested after Dec. 31, 2020. Operators must provide satellite evidence demonstrating that the origin farms have not been involved in deforestation as well as GPS evidence of the source of the products, operators will need to verify that their production also complies with the local laws of the producing country.
This is another sphere where blockchain technology and AgTech can play a pivotal role. As more and more companies are turning to distributed ledgers to improve their supply chains, the tracking and monitoring of all materials used throughout production have also become more transparent.
Moreover, Web3 companies are joining in the effort to limit deforestation. Building on its supply chain management tools, Dimitra has created a blockchain-based Deforestation Certification Module as an upgrade to its Connected Farmer and Livestock Guru platforms. This module makes deforestation assessments and confirms compliance for producers, traders, consumer goods firms and regulators based on data stored on the blockchain.
While AgTech is still a relatively new sector and only a few agricultural companies have adopted blockchain-based solutions. This technology has a lot of potential to bring sustainability into the industry.
Companies like Dimitra are actively working toward bringing easy-to-use and accessible AgTech solutions that can be implemented into businesses of all sizes — from the smallest farm to the most significant agricultural conglomerate.
The fight against climate change is one of the ultimate challenges facing the human race at the moment, and blockchain-based solutions might just be the saving grace when it comes to factors like deforestation.
New Horizon Building, 3-1/2 Miles Philip S.W. Goldson Highway, Belize Cityinfo@dimitra.io
Deforestation affects everyone in the world. It is responsible for approximately 10 percent of global warming. Without trying to combat deforestation, it is impossible to combat global warming. EU Deforestation Regulation and Compliance is working to make the world a better place.
An example of this is slash-and-burn agriculture. It occurs when a farmer burns down trees on their land, allowing the ash to fertilize the land for crops. Although this may be sustainable for the farmers for a short period. They have to repeat it as the soil only remains fertile for a couple of years. It is not a sustainable farming method for the planet in the long run. It causes long-term harm to the environment.
When trees are cleared to make room for farming practices like logging, oil palm, rubber tree plantations, and cattle ranching, the amount of carbon dioxide released into the atmosphere increases. Trees play a vital role in the atmosphere. They take in carbon dioxide for photosynthesis, which is in their wood. Farmers burn the trees, and this releases carbon dioxide into the air. As the number of trees continues to decline. An increasing amount of greenhouse gas collects in the atmosphere, accelerating global warming.
In addition to the environmental repercussions listed above. Deforestation threatens biodiversity and leaves soil more prone to erosion and forest fires.
The United Nations and the EU are working to limit the trade of products linked to deforestation worldwide to help combat the effects of climate change. The new regulation sets strict mandatory due diligence rules for companies that want to place relevant products on the EU market or export them. Once it becomes law, traders and operators have 18 months to adjust to the regulations, while smaller companies will have two years to adapt.
Operators and traders will have to prove that the products do not originate on land deforested after the 31st of December 2020. In addition to deforestation, operators will need to verify their production complies with the local laws of the producing country.
Evaluating the metrics based on crop-specific criteria, regional or country-specific regulations, as well as EU-specified criteria. When considering the criteria, the metrics set by the EU will be used as the baseline standard, and any other criteria, be it regional, country-specific, or produce-specific, will be taken into account based on the highest of the two standards. If a specific country’s criteria are different or have different components. Measurements from both will be taken into account, and the higher standards will be considered the primary metric.
Farmers around the globe are adjusting their farming practices to adhere to these new environmentally conscious changes. Farmers have to substantiate their farming practices to allow for the export of produce. Otherwise, the importer will face fines of up to four percent of their annual EU turnover.
Besides avoiding deforestation to make way for farmland, planting new trees can make farms more sustainable. Some crops like coffee and cocoa grow very well under the shade of large trees. In addition, fruit-bearing shade trees can provide additional income for farmers. However, reducing deforestation doesn’t start and end with the farmers. Influential commodity trading companies are crucial to reducing farmers’ pressure to produce more.
Dimitra offers a Deforestation Certification Module as an upgrade to its Connected Farmer and Livestock Guru platforms making deforestation evaluation accessible to combat the climate crisis. The deforestation module makes it possible for producers and traders to prove their goods are unrelated to deforestation. It also helps regulatory authorities confirm compliance. GPS Track and trace is required to prove compliance with the new EU regulations by being able to show that the product is registered and comes directly from the farm.
Origin farms are defined by a geo-fence so that the system can continuously monitor land use via satellite. When products are being verified, the regulatory authority can trace the product back to its origin farm and assess if any trees were lost to make way for planting crops. Users also can create a year-over-year user-generated report based on data from their designated geofence inputs for an additional fee.
So, who can benefit from adopting this technology? This technology can impact any party within the agricultural chain. For example, farmers and cooperatives can consolidate the information on their farms, and governments can provide better compliance and standardized assessment for the buyers and producers of affected products. All of this data is written to an enterprise grade blockchain to provide transparency and take advantage of blockchain’s security and immutable ledger.
Dimitra also adds other values of importance to the EU, including the responsible use of pesticides, soils, and water, and respect for humans, including labor rights.
With Dimitra’s ability to fully automate the capture of deforestation, calculating the loss and coverage with year-over-year reporting, farmers, cooperatives, and governments can improve the accuracy of their information while helping to combat deforestation while trying to make an impact on climate change. Working towards this goal is essential to improve the state of the environment globally. In fact, it is estimated by the assessment from the European Commission that at least 71,920 hectares (278 sq miles) of forest annually — (around 100,000 football pitches) will be protected with this law. As a result, global carbon emissions are also estimated to drop by 31.9 million.
New Horizon Building, 3-1/2 Miles Philip S.W. Goldson Highway, Belize Cityinfo@dimitra.io