Rice innovations qualify as cleantech
I’ve seen some unique business and financing models, but this one is certainly one of the most creative I’ve seen in some time. California based Arcadia Biosciences is working with the Chinese government to reward farmers in China that grow the firm’s genetically modified (GM) rice, with carbon credits that they can sell for cash.
This begs the question: why would GM rice crops qualify for carbon credit compensation?
From the Guardian:
Arcadia says its GM rice requires less nitrogen fertiliser, and so farmers that grow it will lower their emissions of nitrous oxide – a greenhouse gas some 300 times more potent than carbon dioxide. Swapping global rice supply to the GM version, the company says, would save the equivalent of 50m tonnes of carbon dioxide each year, and generate £750m in carbon credits for farmers.
Leveraging opportunities in an emerging market (China), funded by an industry ripe with cash (cleantech), to fund the development of a novel technology (Bio-Ag): clever indeed. Though certainly complex. And with each additional regulatory body you deal with, the number of risks out of your control go up exponentially.
Kevin currently manages initial client engagements with the MaRS Venture Group. He also administers a federal fund that provides mentorship to start-up companies across Ontario.
