Refi | Cryptobeyer

I am currently part of the ReFi Talent program at Frankfurt School Blockchain Center, deeply immersed in the buzz surrounding regenerative finance. The idea is compelling: use innovative financial tools to restore and sustain our planet while creating wealth. It sounds like the holy grail—a win-win for capitalism and the environment. But here’s the thing: I’m skeptical. And you should be too.

Regenerative finance, or ReFi, promises yet another revolution. It uses blockchain technology, tokenization, and decentralized governance to address climate change and social inequity. Hear me yawn. Let’s not kid ourselves.

At its core, ReFi is still rooted in the same capital-driven logic that got us into this mess in the first place. It’s like trying to clean up an oil spill with paper towels, well-intentioned but woefully inadequate.

Take Al Gore, for example. His work with Generation Investment Management is often said to be a model for sustainable finance. Gore has pushed for the integration of environmental, social, and governance (ESG) criteria into investment decisions, aiming to align profit with purpose. Thanks Al, but the ESG movement has been riddled with problems.

Companies slap on an ESG label, but underneath, it’s business as usual. Oil giants tout their green investments while continuing to pump out fossil fuels. Banks invest in green bonds, yet finance deforestation and human rights abuses on the side. ReFi risks falling into the same trap of becoming a new, shinier mask for the same old capitalism. I see a problem here.

Let’s talk about the elephant in the room.

ReFi might promise democratized finance, but it’s plagued by capital bias. The beautiful message of Refi is that it promise to democratize finance, but the reality is that only those with substantial wealth and access to technology can fully participate and reap significant benefits. Sure a few farmers in Africa may earn, pennies worth, of tokens from using web3 enhanced cooking appliance and therefore decrease CO2 emissions in the process. But on a broader scale, capital bias reinforces existing inequalities, leaving marginalized communities excluded from the purported advantages of regenerative finance.

Those with substantial wealth and access to technology are better positioned to participate in and benefit from ReFi initiatives.

Refi has more problems. With weak regulation, the risk of greenwashing, cryptocurrency volatility, and governance dominated by tech elites, ReFi often prioritizes financial returns over real social and environmental outcomes. It’s a new game where the same players keep winning.

And what about the climate crisis?

ReFi might fund a few tree-planting projects or carbon-offset schemes, but it doesn’t address the root cause: an economic system that values profit over the planet. Take drinking water, for instance. It is often treated as a tradable resource rather than a fundamental human right. We don’t need more financial instruments; we need a fundamental shift in how we relate to the resources of the earth and each other.

The focus on individual projects misses the bigger picture, climate change is a systemic issue that requires systemic solutions.

Here’s the uncomfortable truth: ReFi, for all its promise, is still a Band-Aid on a broken system. It may patch up a few cracks, but it doesn’t address the underlying rot. To truly tackle climate change, we need to move beyond the hype of financial innovation and web3 technology.

We need to confront the real problem of a global economy that prioritizes wealth accumulation over planetary survival.

Thank you, Marjorie Kelly, for pointing out what is wrong here. The future we need is not one where finance plays the hero. It’s one where we redefine success, moving away from growth at all costs to a model that values sustainability, equity, and well-being. This means dismantling the structures of wealth supremacy that Marjorie Kelly critiques in her book, Wealth Supremacy. It means creating an economy that serves people and the planet, not just profits. We need systemic change, not superficial fixes.

So yes, I’m still part of the ReFi Talent program, for now, since I see some potential. But I also see the danger of buying into another false solution. If we want to make a real difference, we need to stop tinkering around the edges and start reimagining the system from the ground up. Anything less is just paper towels on an oil spill.

Cars speed by and make us sneeze on our way to work.
Soon, there will be no trees to see through the forest. It’s just too hot. As the climate crisis deepens, carbon trading has been hyped as a key solution, promising to reduce greenhouse gas emissions through market-based incentives. But is only partly works. This approach often results in unintended consequences, particularly for developing nations. Wealthier countries exploit poorer ones
through emissions trading, creating a new form of inequality (carbon colonialism). Can web3 tech have a potential remedy?

Carbon trading systems allow countries and companies to buy and sell emissions allowances or credits. In theory, this should drive cost-effective emissions reductions and stimulate investment in sustainable projects. However, the reality falls short. For instance, carbon markets have sometimes exacerbated inequalities by benefiting wealthier nations at the expense of poorer ones.

Let’s not kid ourselves. It’s good business to outsource carbon-intensive activities to poorer countries.

Nearly a quarter of global CO2 emissions now come from these imported emissions. For example, while the UK reports a decrease in domestic emissions, it has actually increased its imported emissions by 28% since 1997, shifting the burden to developing countries.

The financial implications are striking.

Research indicates that developed nations have far exceeded their fair share of the global carbon budget, using up three times their allocated amount and claiming half of what should belong to poorer countries. By 2050, it’s estimated that these nations will owe $192 trillion in compensation to the global South to address this imbalance.

But it’s not just about money! People suffer because of carbon colonialism.

In Uganda, the scenario of carbon colonialism is evident in afforestation projects by Norwegian companies. These projects, aimed at earning carbon credits, have led to social unrest and displacement of local communities. The focus on international carbon markets over local needs highlights a troubling trend of neo-colonial practices.

In this context, Regenerative Finance (ReFi) offers a different approach. ReFi aims to shift the focus from these failing financial models to those that prioritize local communities and ecosystems. One promising, yet simple area, is the promotion of clean cooking methods. ReFi projects designed to provide clean cookstoves to families can significantly reduce emissions and improve health outcomes.

Consider a family in rural Kenya. Previously, they used an open fire for cooking, which emitted harmful smoke and led to respiratory problems, particularly affecting the children. With a new clean cookstove funded by a ReFi project, their firewood can be decreased by 60%, and their health can be significantly improved. Cleaner air in their home can also led to better school attendance and lower medical expenses.

What’s new here? Clean cookstoves equipped with emission measurement sensors can track and verify carbon reductions. This data can be recorded on a blockchain, ensuring transparency. ReFi projects could use blockchain-based tokens to compensate families for their verified reductions. These tokens could be redeemed for goods, services, or further investments in sustainable practices.

ReFi represents a shift towards a more equitable approach to climate solutions, but its success depends on addressing fundamental issues. The brutal reality of foreign companies using carbon credits as an excuse to cut down pristine rainforests must end.

Let's stay alert to the risks of carbon colonialism, as it will probably persist due to the profit it generates.

But web3 tech is promising. By ensuring genuine community involvement, fair compensation, and transparency, ReFi could help move beyond the traditional carbon markets. It’s a chance to create a more balanced approach to climate action—one that genuinely supports and benefits the communities most affected by environmental degradation.