July 27, 2023

Is It Hot Enough Yet for Regulators to Act?

Is It Hot Enough Yet for Regulators to Act?

There is no doubt in our Project SAMSØ minds: The need for regulatory measures to effectively address the increasing temperatures and related disasters caused by climate change is paramount. Despite numerous temperature records broken, political and regulatory actions must improve to confront the crisis effectively. The lack of regulatory response to address the climate emergency has a devastating global impact.

Rising temperatures and extreme weather events have become more commonplace, with destructive flooding, heat waves, and mudslides occurring worldwide. Scientists' predictions about the cascading series of disasters resulting from global warming have been alarmingly accurate. However, the absence of substantial regulatory actions in many places (and yes, including you, the U.S. Securities Exchange Commission) hinders our ability to effectively mitigate these impacts as societies, countries, and humans naturally assume a more short-term view in everyday life.

Take Canada as one example of many: a liberal democracy with solid environmental sentiment and a front-row seat to the crisis due to the Arctic's rapid warming. Despite
widespread public concern about climate change, political dynamics remain dominated by the fossil-fuel industry, impeding meaningful regulatory change. We must acknowledge the contradiction between the public's awareness and general openness to change vs. the limited regulatory response.

Furthermore, we should consider climate change's economic costs and health implications. Economic analyses indicate potential significant reductions in economic growth, job losses, and adverse health effects due to excessive heat. Add the impact of artificial intelligence and the associated labor market impact on top of it. These impacts are not confined to any country or region but are part of the global challenge of global warming.

The disparity between the severity of the crisis and the insufficient response from regulators and politicians is frustrating to many. Regulators must heed the urgent call for action on climate change. It is crucial to prioritize regulatory measures that reduce greenhouse gas emissions, facilitate a clean energy transition, build resilience, and ensure equity in addressing climate change.

Offsets only get us so far. They are the quick and cheap way out on paper but are not only extremely limited but require vigorous verification, and even then, many come with considerable risk. If carbon removal is going to start having an impact, it needs to scale fast, really fast. By 2035, the world will need at least 30 to 40 times as many carbon credits as exist today, says consultancy firm Ernst and Young. That means deploying every carbon removal system practical in our race against the climate clock.

Natural solutions, such as forests, store significant amounts of carbon at a lower cost than high-tech systems; however, many have concerns about the longevity of carbon storage due to factors like wildfires and rising sea levels. Additionally, the distribution of benefits from carbon credit projects can be questioned as these benefits may only sometimes reach grassroots levels. The need for robust regulation to address unscrupulous operators in the carbon credit market is more than overdue. On the other hand, engineering-based systems for carbon removal offer predictability and long-term carbon storage but are currently more expensive than natural solutions.

In their efforts, Regulators should aim to strike a balance between affordable natural solutions and the development of cost-effective engineering-based technologies. Project SAMSØ is part of the solution, carrying a two-fold role: First, monitor entities on their path to reducing emissions. Second, steer efficient capital flows from companies to the most viable carbon credit efforts, leveraging the power of capital markets technology and patent-pending linking capabilities. Once the company's CO2e inventory is Project SAMSØ certified, our patent pending Carbon Neutral Securities (CNS) will create transparency and share the burden of getting to net-zero or better between the company's management and its carbon- responsible owners. CNS will convert any security into a clean, carbon-neutral investment for those investors.

About Strategy Partners LLC

Strategy-Partners LLC is a strategic designer of workflows and solutions for a Carbon Neutral Ecosphere. The firm assists with establishing unified accounting of carbon emissions and offsets with third-party verification and ongoing validation. Strategy-Partners is led by a team of financial securities veterans and data experts based in the U.S.  For more information, visit www.strategy-partners.net

About KALYP Technologies LTD

KALYP Technologies, a provider of enterprise software in the financial markets with its distributed ledger-based software, establishes smart market infrastructure for institutions and enables more efficient digital processing. The firm is independently financed and led by a group of securities industry veterans and distributed ledger technology experts with an international presence between London and Boston. For more information, visit www.kalyp.com

Important Information

All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability, or completeness of, nor liability for decisions based on such information, and it should not be relied on as such.


1) Is It Hot Enough Yet for Politicians to Take Real Action? The New Yorker. Bill McKibben. July 11, 2023.
2) What Counts As A Carbon Credit? Anthropocene Magazine. Mark Harris. June 15, 2023.