For some years now, Brazil has increasingly been in the spotlight again as an environmental offender on a grand scale. And if you look at the development since a few years, especially under the current government, the focus is also rightly set.

However, one should not lose sight of the fact that governments come and go. But the country will continue to exist, with all the comparative advantages and disadvantages.

What is on the assets side of the Brazilian balance sheet?

84% of Brazil's total energy comes from renewable energy.

Traditionally, hydropower took the first place. In recent years, however, solar and wind power together have grown to the same level as hydropower. While in other nations, especially in Europe, the expansion of renewable energy remains a mere lip service, in Brazil, no matter which government leads the country, renewable energy has been constantly expanded for decades.

In Brazil, approximately 65% of the total national territory is forest, of which 92% is native forest.

Comparison with the European Union shows that 35% of the land area is forested, but ⅔ of this is in Finland. Native European forest represents 0.7%, but this is spread over 32 countries.

For years, if not decades, Brazil will have the automotive fleet with the lowest CO2 footprint globally. Already today, the CO2 footprint is noticeably lower than after the planned electrification of the transport fleets in Europe and North America.

How do you get from these numbers now blockchain smart contracts in carbon credit?

The basic idea is to sell large emission volumes of rights to neutralize CO2 emissions for industry, retail and also large events such as international fairs, sporting events and concerts.

And this is where Brazilian startup DaX Digital Assets comes in. The startup, which operates a marketplace for non-fungible tokens (NFTs) from the sports and entertainment sectors, has created a business unit to "tokenize" CO2 credits and renewable energy certificates with global reach.

To that end, the startup sought out vast native forest areas from indigenous forest conservation and reforestation projects in Brazil, as well as recyclers that could generate the carbon credits that would be converted into NFT tokens.

In the renewable energy field, they went even further. The renewables are solar, wind, and hydroelectric plants built in Brazil, Chile, and Argentina. Renewable energy certificates function like I-REC stamps, certifying proof of sustainable origin, and have become an exchangeable currency for clean energy.

In the process, major producers from the Amazon are brought together. At the same time, all traceability of origin and certification is ensured through an audit by one of the 'big four auditors'. After these process steps, the NFT tokenization of the credit is done through a 'smart contract' on the blockchain.

The NFT tokens are traded in large lots of about 74 million tons, enough to neutralize two years of gas emissions from a large industrial plant.

DaX Green, the name of the new digital business entity, is coining the sustainable credits generated in Brazil in the United Kingdom. The country currently has one of the best regulations for digital assets.

The blockchain used is Polygon's, which is also carbon neutral. Polygon's cryptocurrency is the Ether, minted in the Ethereum blockchain. The tokens are traded globally through platforms.

To meet emissions inventory, auditing and sustainability certification requirements, DaX Green has partnered with ESG Ventures. This is an administrator focused on the corporate sustainability market.

DaX was founded earlier this year and manages NFT marketplaces in the gaming, sports and entertainment industries. The startup creates virtual environments, develops custom games and custom avatars that work in the web3 environment.