Crowdfunding for climate change is a new avenue of obtaining micro-finance from society for such projects that either require huge investments or can’t be funded alone by a single party. Resource depletion is a worldwide concern to save the planet. Every living organism needs a habitable environment to continue to live and reproduce. Saving the environment is a huge social and economic responsibility.
To mitigate extreme weather conditions, many organizations have started several projects globally. Ketto is redefining the status quo by offering continuing assistance to crowdfunding platforms that are aware of the catastrophic consequences of climate change.
Crowdfunding for climate change can act as a useful tool for raising funds that can contribute to environment-friendly businesses and welfare projects. The most innovative ideas come from the areas most impacted by the climate problem. Thus, fundraising gives vital resources to the torchbearers at the forefront of climate action.
What is crowdfunding?
Crowdfunding is the newest concept of raising public money for any project, venture or enterprise via crowdfunding websites or crowdfunding platforms from numerous sources in small amounts to drive the venture. It is a non-conventional mode of finance but is gaining popularity due to its vast scope, risk-free validation and easy access to the target viewers. It is proving beneficial to start-ups, emergency funding as well as in medical crises like medical treatment and cancer treatment.
What is crowdfunding for climate change?
Climate change is the worldwide phenomenon of drastic changes in climatic conditions like wind, rainfall and temperature that are mostly triggered by human activities. Uncontrolled use of fossilised fuels like petrol, diesel and coal is contributing to the increase of greenhouse gases (GHG) that are increasing the global temperature manifold leading to the melting of Earth’s ice caps, global warming, extreme weather calamities and changes in flowering patterns, thereby endangering global flora and fauna.
Many government organizations are dedicated to activities such as researching climate change impacts, reducing GHG emissions, providing clean water and sewage control and pollution control. However, these projects fall short largely of the required measures. There are many NGOs that are operating towards environmental goals like preserving land qualities, saving endangered species and suffering animals and introducing organic farming.
However, such innovative ventures need proper funding for the extra cost of sustainably sourced materials and processes. This is where crowdfunding by environmental entrepreneurs or green entrepreneurs comes to play. These entrepreneurs are environmentally conscious business people who think and work in innovative ways to promote business ideas that can benefit ecologically and produce minimal waste.
Environment crowdfunding is a relatively new topic, and India is still lagging in implementing environmental policies. This can be reflected in the fact that 3 cities in India are ranked among the 20 most polluted cities worldwide. So, we need more crowdfunding for green businesses in India.
How can environmental entrepreneurs help?
India is one of the rapidly developing nations, with large-scale industrialization and urbanization destroying its natural habitat. Many NGOs, research organizations and universities are working for conserving nature. They conduct ground-level research and help in fabricating governmental policy by providing practical scenarios, filling policy gaps, providing institutional help and communicating directly with the public to promote sustainable living practices.
Green entrepreneurs use campaigns for educating India through crowdfunding. They launch fundraising campaigns on environmental concerns and enforce green solutions for better sustainability. Their primary goals are as follows :
- Ensure environmental biodiversity
- Prevent all kinds of air, water and sound pollution
- Work to end nuclear warfare
- Promote global peace and non-violence
What kinds of ventures can create crowdfunding campaigns?
As we are striving towards a green economy, crowdfunding for climate can help prevent floods, droughts and dearth of natural resources, reducing daily wastes, appropriate sanitization and overall public hygiene. Some examples of green businesses are as follows:
· Organic seed culturing
· Organic farming like mushrooms and vegetables
· Reusable bags, cutlery and packages used at shops
· Energy conserving appliances
· Waste management
· Conserving water
· Planting commercially important trees to prevent deforestation
· Reducing carbon footprinting of the community as much as possible
· Animal welfare services
· Green cleaning
· Prevention of dumping of wastes and plastic goods in the water bodies and ocean
· Sustainable construction
· Environment-friendly event management
How could crowdfunding help these projects? What are the pros and cons?
Crowdfunding involves an empathetic relationship between its two main counterparts, the donor (one who donates the funds) and the creator (one who creates the venture).
There are mostly 4 types of crowdfunding:
1. Donation based: The donor supports the cause for charity with no monetary gains.
2. Reward based: The donors give in exchange for certain rewards or products but no monetary returns.
3. Equity based: The donor receives some part of the stakes of the venture or business they investment and thus receives likewise profit or loss as the venture.
4. Lending based: The donor lends and receives fixed annual interest as well as parts of the original investment.
The pros of crowdfunding are:
- It provides more widespread accessibility to finances as opposed to the traditional ones
- It offers more propulsion of funds, social inclusion and validity
- It provides more ideas from the public that provides scope for improvement
- It helps to garner primary supporters and investors.
- It helps the creator get a primary idea about the market acceptance of the project.
The primary cons are:
- High pressure to produce results
- Chances of fraudulence, as there are few opportunities for face-to-face meetings of the donor and creator
- Risk of a complete assessment of the mobilised funds
Many crowdfunding platforms, therefore, provide regular feedback on the ventures as well as fraud-alert services to overcome these disadvantages.
Climate change is a potential threat to our very own survival and well-being. Crowdfunding for climate change provides a platform for supporting a cause and a way to contribute to our surroundings and sometimes even garner a few profits for the participants involved in the green movement. This will make us responsible ancestors and provide a better future for the coming generations.