Laconic Infrastructure Partners Inc. (Laconic), a Public Benefit Corporation (PBC) founded in 2021 and based in Chicago, has secured a significant mandate from the Plurinational State of Bolivia. The agreement grants Laconic the authority to utilize its innovative SADAR™ Natural Capital Monetization (NCM) platform to facilitate technology transfer and enhance Bolivia’s capacity-building endeavors. This collaboration holds the potential for Bolivia to access up to $5 billion in funding for sustainability projects aligned with global climate objectives. Marcelo Montenegro Gomez Garcia, Bolivia’s Minister of Economy & Public Finance, stressed the nation’s commitment to eradicating deforestation within its borders by 2030. Through partnering with Laconic, Bolivia aims to fulfill this pledge and bolster its efforts under the Paris Agreement, benefiting not only its citizens but also contributing to global NetZero 2050 goals.
Empowering Bolivia’s Carbon Market with Laconic’s Innovative Technology
Laconic specializes in providing cutting-edge environmental intelligence and data management solutions to governments, corporations, and financial institutions, enabling them to participate transparently and equitably in the carbon market. The company’s unique SADAR™ NCM platform is designed to assist Bolivia in securing financing for its ambitious NDC goals. Powered by artificial intelligence, this platform offers a secure data repository and structured information exchange crucial for the efficient operation of carbon markets. By leveraging SADAR’s carbon securitization technology, Bolivia can transform its environmental assets into financial resources, potentially generating up to $5 billion to support sustainability initiatives aligned with global climate commitments.
The collaboration between Bolivia and Laconic arrives at a pivotal juncture for the global carbon market. Through the implementation of Laconic’s SADAR™ platform, Bolivia can ensure compliance with the Paris Agreement and relevant local and regional regulations. This strategic partnership enables the Bolivian government to enhance its NDC ambitions and contribute to global decarbonization efforts. Last month, Laconic also entered into a new Memorandum of Understanding (MOU) with the State of Espirito Santo, Brazil, integrating its SADAR™ Platform and NCM services to assist the state in achieving Brazil’s climate targets. The company’s commitment to providing timely access to critical information for all carbon market participants underscores its dedication to promoting liquidity and compliance in global financial markets.
Sovereign Carbon: The Carbon Financing Mechanism
Laconic’s platform will manage Bolivia’s carbon assets through the creation of a “Sovereign Carbon” product. This innovative approach represents a scalable solution to mobilize the $1 trillion annual carbon trading necessary to achieve collective net zero objectives. Bolivia’s market launch as the world’s first Article 6-compliant sovereign carbon sale sets a new standard for national-level carbon financing, offering governments an efficient mechanism to monetize natural capital on a global scale. This initiative also enables institutional investors to acquire legitimate securities backed by carbon assets, fostering a more sustainable approach to carbon finance.
CEO Andrew Gilmour expressed his appreciation for collaborating with the Plurinational State of Bolivia to pioneer the innovative Sovereign Carbon market. This transaction showcases the transformative power of technology in emerging markets finance, demonstrating the potential to generate economic growth through the preservation rather than exploitation of natural capital assets. Laconic’s Sovereign Carbon provides a unique investment opportunity in the carbon market, structured as a financial asset with inherent security features, verified authenticity, and alignment with the Paris Agreement. By adhering to a robust compliance and security framework, this initiative not only strengthens Bolivia’s position in the global carbon market but also sets a precedent for Article 6-compliant carbon financing, supporting international climate objectives through innovative financial solutions.
Source: Laconic and the Plurinational State of Bolivia announce landmark 5 Billion USD Sovereign Carbon Transaction
