LOS ANGELES--(BUSINESS WIRE)--ProducePay, the marketplace transforming the global produce industry into a more connected and sustainable supply chain, has partnered with ALLCOT to create a carbon offset program developed specifically for growers of primary crops. ProducePay’s first-of-its-kind program is tailored for produce growers, who until now have not had the tools to participate in the rapidly growing voluntary carbon market—which is estimated to reach $50 billion by 2030. The carbon offset program is the first component of ProducePay's groundbreaking Sustainably Sourced™ initiative which, when launched later this year, will be the first ever worldwide sustainable produce supply chain standard created to establish an efficient, profitable and sustainable fresh produce ecosystem.
A recent feasibility study ProducePay conducted in consultation with ALLCOT to assess the carbon market potential of five produce growers revealed that each grower was well poised to be a future participant in the global carbon market. While voluntary carbon markets have been created for the forestry sector and large securitized crops like wheat and soy in the U.S., there has never been an understanding of the potential role of the $1.3 trillion global produce sector in helping to limit global warming below 1.5 degrees Celsius.
The study, which examined farms in the U.S. and Mexico growing asparagus, grapes and strawberries, saw that the growers were already performing many of the sustainable agricultural practices needed for decarbonization and ultimately selling verifiable carbon offsets in the international market.
“Too often produce growers are left behind when it comes to innovation and modernization in the agricultural industry,” said Pablo Borquez Schwarzbeck, CEO and founder of ProducePay. “These growers are sitting on a lucrative opportunity to make thousands, if not millions, of dollars in residual income that will not only help the world mitigate climate change but also create a more resilient future for them—as these growers are often the most impacted by climate change. We want to empower produce farmers to be on the frontlines of carbon markets, not on the sidelines.”
Recognized as a world-leader in carbon offsetting and sustainability initiatives, ALLCOT has provided ProducePay with recommendations for helping its small-to-medium growers develop a roadmap for adopting additional infrastructure and carbon-smart practices, such as pressurized irrigation systems, alternative farming inputs and implementing water desalination technology, to become fully compliant with carbon market practices. ProducePay expects its carbon offset program to be a new service offered to growers in its marketplace later this year. ALLCOT has also ensured that ProducePay’s carbon offset program will meet the rigorous international standards of their carbon verification.
“It’s been an honor to join ProducePay in this transformational initiative for the agricultural sector. We are excited to lend our expertise and rigor in the climate markets space to establish ProducePay’s carbon offset program,” said Natalia Rodrigo Vega, Chief Business Development from ALLCOT. “Our efforts will equip growers to harness the power of carbon-smart practices to build their businesses, protect the environment and provide community benefits.”
Despite international efforts to reduce GHG emissions, they have more than doubled since the UN Climate Change Convention in 1994. This increase has raised the stakes and given urgency to ProducePay’s feasibility study, which was funded by IDB Invest, the private sector arm of the IDB Group. This funding supports ProducePay’s work to develop and implement internal strategies aligned with the objectives of sustainable development and environmental and social best practices at the international level.
By helping global growers access tangible economic benefits, ProducePay remains committed to promoting sustainability for the produce industry as well as sustainable outcomes for the environment. ProducePay’s Sustainably Sourced™ initiative will be a vital contribution to the global effort to reduce greenhouse gas emissions.
About ProducePay
Founded by Pablo Borquez Schwarzbeck, a fourth-generation farmer, ProducePay is transforming the fragmented produce industry into a more connected and sustainable movement. ProducePay gives farmers unprecedented access to the market, financial solutions, and trade protection they need. Buyers and consumers receive fresher produce more efficiently, knowing it is grown and delivered in responsible ways. This simplified and empowering approach is helping to eliminate over 50% of economic and food waste, while creating value for everyone involved. To learn more about ProducePay, please visit https://producepay.com/.
About ALLCOT
Since 2009, ALLCOT provides innovative solutions to combat climate change and promote sustainability through project development, carbon markets and advisory services. ALLCOT's vision is to lead and accelerate the global transition towards a climate neutral society by 2050. ALLCOT's unique approach is based on using Article 6 of the Paris Agreement, its linkage to the SDGs, non-market approaches and other market mechanisms.
