Gate.io AMA with XELS-Blockchain Meets Nature-Based Solutions In The Fight Against Global Warming

2023-02-14, 09:00

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![](https://gimg2.gateimg.com/image/article/1676364653123.jpeg)
**<font size=4>Time: Sep 26th, 2022, 13:00 UTC
[Gate.io](https://www.gate.io "Gate.io") hosted an AMA (Ask-Me-Anything) session with the Director of XELS, Mitchell Hammer in the [Gate.io Exchange Community](https://t.me/gateio "Gate.io Exchange Community").
Official Website: https://www.xels.io/   
Twitter: https://twitter.com/xels_PR   
Follow [XELS](https://twitter.com/xels_PR "XELS") on Twitter and [Telegram](https://t.me/xelscoin "Telegram")
</font>**
**Guest**
**Mitchell Hammer — Director of XELS**
I'm Mitch Hammer, Director at XELS, a Japanese venture applying technology to help companies leave a positive mark on our planet.
I have over 8 years of professional experience as a strategic advisor, program manager, entrepreneur, and environmental consultant. My expertise includes defining and driving fundamental change and improvements in strategy, process, and profitability, launching new ventures, go-to-market strategies, and leading cross functional teams across a range of industries including blockchain, digital assets, enterprise software, Carbon Markets, Environmental Projects e-commerce and government.

## Q&A from Gate.io
### Q1: What is XELS? There are a few projects tokenizing carbon credits, what makes you different ?
**Mitch**: Xels is an Eco-technology platform that is the future of decentralized climate disclosure for corporations seeking transparency in their environmental reporting.
![](https://gimg2.gateimg.com/image/article/1676365205321.png)
Xels allows corporations to produce and maintain accurate NFT based records of their carbon offset activities that are certified and traceable, as well as offering cost-effective solutions for the enterprise world. Corporations are acknowledging that carbon emission across the supply chain is a critical part of their corporate social responsibility.

### Q2: What’s the problem that XELS is trying to solve that others cannot?
**Mitch**: The absence of transparency in carbon footprint reporting, as well as difficulties in tracking emissions through the value chain, results in customer distrust in what companies promise, and in a lack of investor confidence in pledges.

Unfortunately, that’s exactly where we are today with climate change. Companies like Microsoft, IKEA, and Amazon are taking world-changing actions on climate change. But Are their suppliers following through and reducing their carbon footprints? Do their investors really know how well their carbon reduction plans are working? The answer to all is, no.
![](https://gimg2.gateimg.com/image/article/1676365158231.png)
XELS blockchain based solution would allow the industry to maintain open, transparent records — from generation to Corporate commitment to action. Xels will be able to provide both corporates and individuals with official certificates that can be used as proof of their carbon reduction initiatives, backed by immutable blockchain transactions that can be viewed by anyone.

### Q3: Why is this the right time for XELS?
**Mitch**: With the world starting to pay more attention to ESG action made by companies, transparency and accountability are the most important things.

According to the World Bank, humanity compensates for just 22% of global emissions through the purchase and retirement of carbon credits, yet the proportion of countries operating regulated carbon markets has risen from 40% in 2016 to 70% in 2020.

The result is a wall of demand that may far outstrip the issuance of new carbon credits, which is constrained by the slow and expensive process of carbon project certification.

Since fraud is already an existing issue, it’s important that the increased demand for carbon offsets is met with a better platform to protect those entities that want to do the right thing in the first place. The climate crisis is dire – sadly the “right time” has already long passed, but we hope that Xels will increase participation and get us on a better path toward carbon neutrality.

### Q4: Why is your team best positioned to solve this problem over others?
**Mitch**: We have spent a lot of time finding the right people and getting as many of them to Tokyo as possible, thankfully before Covid struck. Japanese startups tend to be rather homogenous, but we’re proud of our diversity.

We currently have team members from seven countries who speak more than 10 languages. Our chief technical officer obtained a PhD in Blockchain from the University of Memphis, we’ve got advisors from some of the biggest domestic and international tech firms, and we’ve built s<a href="/id/price/tron-trx" target="_blank" class="blog_inner_link">TRON</a>g relationships with the Japanese and regional governments.

### Q5: Can you now talk to us about how big this market opportunity is?
**Mitch**: Sure, It's really quite interesting as the ESG space has exploded in the past year. It has become a very interesting space.

Our initial focus is on Japanese companies looking to go carbon neutral. Japanese clean energy initiatives lag behind those of the UK by 50%, so the potential is massive. We’re supporting former Prime Minister Yoshihide Suga’s target of reaching net zero emissions by 2050, which is something all big Japanese companies will want to get on board with, or else face backlash from the government and consumers alike.

Two-thirds of companies we have apprised have a long-term emissions reduction goal or will have one by the end of this year. A modest carbon offset goal of 200,000 tonnes per year is equivalent to about US$2 million in investment per company – and Japan alone has over 3,700 companies listed on the Tokyo Stock Exchange.

Pressure from stakeholders – both consumers and investors – will be the main driver of  carbon reduction action, and Xels is ready to support any company or individual wanting to go green.

### Q7: Who is your target customer?
**Mitch**: Anybody can get involved in carbon offsetting, from individuals right up to the largest global corporations. Carbon offsetting is now a major goal of companies such as Amazon, Microsoft and Nike, who are no longer interested in waiting around for governments to take the lead. They’ve set out to neutralize their current carbon footprint, or even their entire historical footprint, on their own initiative.

Making it easy for companies to transparently offset their carbon emissions without fear of fraud will make them even more willing to enter the fray. And of course, normal people who want to offset their carbon footprint can also get involved. The platform is open to all.

### Q8: What is your revenue model?
**Mitch**: For each transaction that occurs on our platform, Xels takes a small commission. As mentioned, we’re in advanced discussions with five major listed companies here in Japan that are interested in using Xels to voluntarily offset their carbon footprints, even though it’s not required by the government.
![](https://gimg2.gateimg.com/image/article/1676365182213.png)
One of them has specifically expressed the intention of offsetting 200,000 tonnes of CO2 per year – that’s equivalent to more than 43,000 cars being driven for a year.

<div class="blog-details-info">
<div>Author:** Rio Fu.**, Gate.io Community
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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