EcoCycle is a waste recycling-focused service which seeks to harmonise, reward, and empower actors involved in waste recycling and climate change mitigation. Waste to EcoCycle includes empty cans, plastics, spoilt or degraded electronics of any kind, and other materials deemed unwanted by their owner but potentially having a new life after repairs or recycling. The adverse effects of climate change are felt today in every continent, including Africa, contributing only about 4% to global greenhouse gas emissions (World Bank Blog, accessed 2nd December 2022). Hence, the need to ensure that actions to mitigate climate change are practical and drive sustainable development and economic growth.
The EcoCycle value chain has two significant actors: the collectors and the processors. The collectors (individuals) gather recyclable wastes and deliver these wastes to the appropriate waste processor. The processors (usually businesses) receive recyclable waste materials from the collectors and convert these materials into valuable items sold as products. As collectors and processors interact, they are rewarded using Ecotokens for contributing to the sustainable development of their communities. All those who participate in the EcoCycle system are known as EcoChampions.
For collectors to receive their EcoToken reward, they must make or receive payment for their services through EcoCycle as USDT, BUSD, DAI, or USDC. Likewise, for the processors to receive their EcoToken reward, they must make or receive payments through EcoCycle. Furthermore, the processors can list their products (EcoProduct) derived from recycling or refurbishing waste items on EcoCycle for purchase.
Using crypto stablecoins helps the processors, collectors and other Ecochampions hedge against inflation as in Africa, a good number of countries have double-digit inflation (Statista, accessed 2nd December 2022).
EcoTokens earned by EcoChampions can be exchanged for discounts (EcoDiscount), tax credits (EcoTaxCredit), and eco-friendly item redemption (EcoRedeem).
With EcoDiscount, EcoChampions can apply their tokens on an EcoProduct purchase and get discounted prices for the product.
Businesses can trade their earned tokens for tax credits. To get an EcoTaxCredit, only earned EcoTokens can be burned to qualify for a tax credit. Burning only earned tokens is to mitigate scenarios where businesses buy up EcoTokens without contributing to climate change mitigation to qualify for a tax credit. EcoTaxCredit will be viable in partnership with the Revenue Services in African countries.
With EcoRedeem, EcoTokens can be swapped for low-value eco-friendly products at designated EcoChampion stores. These products could include mugs, degradable cups, and mobile recharge cards.
As countries in Africa call for more funds to meet climate targets for the continent, COP27 reveals the dilemma of deciding which countries qualify for the compensation (WeForum, accessed 2nd December 2022). Furthermore, these compensations for climate change which are expected to be paid by wealthy nations whose historic emissions have fuelled climate change, need to be channelled towards the sustainable development of the fund's recipient nation. Therefore, EcoCycle positions its service as one which could aid in deciding which countries qualify for the compensation and also aid in tracking the impact of the received funds. Unarguably, every country which gets the climate change compensation fund should also use those funds to mitigate climate change. Furthermore, EcoCycle tracks eco-friendly activities hence the ability to provide valuable data that helps in making appropriate decisions regarding disbursing the climate change compensation fund.
The climate compensation funds could be paid in tranches, and as more activities addressing climate change in the recipient country are observed, the United Nations would release more funds. Using EcoCycle, all eco-friendly activities are tracked on the blockchain, which helps to give a source of truth regarding eco-friendly activities in any country in Africa. The EcoTaxCredit system reveals how businesses in a country are committed to mitigating the effect of climate change and how committed the country government in which those businesses reside in are willing to incentivise them, thereby boosting the nation's economic prospects. Action against climate change must also yield economic benefits to the citizens of the nation; otherwise, the same citizens sabotage their governments' efforts.