YC
Diego Saez Gil - How Pachama Uses Tech to Solve Climate Change
@ Y Combinator
01/29/20
Takeaways
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Diego Saez Gil
01/29/20
@ Y Combinator
I grew up in Argentina, surrounded by nature in the Yungas, which is the last tip of the Amazon rainforest.
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Diego Saez Gil
01/29/20
@ Y Combinator
After finishing school, I got a scholarship to do a master's in Barcelona, which allowed me to travel across Europe as a backpacker.
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Diego Saez Gil
01/29/20
@ Y Combinator
I started my first company in New York City while I was broke, didn't speak good English, and had no idea how to start a startup.
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Diego Saez Gil
01/29/20
@ Y Combinator
My first startup aimed to solve the problem I faced as a backpacker by creating a mobile app to book hostels and bed-and-breakfasts.
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Diego Saez Gil
01/29/20
@ Y Combinator
After selling my first startup, I lost a suitcase on a trip to Argentina, which inspired my next idea for a suitcase that could be tracked.
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Diego Saez Gil
01/29/20
@ Y Combinator
I launched BlueSmart, a smart suitcase company, which we applied to Y Combinator and got selected in Winter 2015.
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Diego Saez Gil
01/29/20
@ Y Combinator
The vision for my previous company was to use technology to make travel better, but it wasn't about improving the world.
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Diego Saez Gil
01/29/20
@ Y Combinator
I learned that introducing a new idea can create a new category in the market, which inspired me to use that power to solve major global problems.
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Diego Saez Gil
01/29/20
@ Y Combinator
After my previous company faced challenges, I took time off for soul-searching and was inspired by the power of nature during a trip to the Amazon rainforest.
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Diego Saez Gil
01/29/20
@ Y Combinator
I discovered the potential of reforestation and forest conservation to capture carbon at scale, which is crucial for addressing climate change.
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Diego Saez Gil
01/29/20
@ Y Combinator
I realized that technology could enable reforestation and conservation solutions, leading me to start Pachama.
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Diego Saez Gil
01/29/20
@ Y Combinator
Pachama addresses the lack of funding for reforestation by utilizing carbon markets, where companies can compensate for their CO2 emissions.
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Diego Saez Gil
01/29/20
@ Y Combinator
Carbon credits are given to projects that reduce emissions or recapture carbon, but less than 2% of carbon market funding goes to forest conservation.
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Diego Saez Gil
01/29/20
@ Y Combinator
To certify a forest project for carbon credits, it can take two years and cost between $100,000 and $400,000, which is inefficient and limits project availability.
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Diego Saez Gil
01/29/20
@ Y Combinator
Pachama uses remote sensing and artificial intelligence for verification and monitoring of carbon storage in forests, increasing project credibility and efficiency.
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Diego Saez Gil
01/29/20
@ Y Combinator
We aim to connect carbon offset buyers directly with forest projects, creating a marketplace for trustworthy carbon credits from restoration and conservation efforts.
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Diego Saez Gil
01/29/20
@ Y Combinator
Our platform allows users to see detailed information about forest projects, including satellite images, photos, and descriptions of co-benefits like biodiversity and water conservation.
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Diego Saez Gil
01/29/20
@ Y Combinator
For service companies, the cost to offset carbon emissions is relatively low, averaging between $50 and $150 per employee per year.
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Diego Saez Gil
01/29/20
@ Y Combinator
One hectare of full-grown forest can contain about 200 tons of carbon, and we aim to present carbon offsetting in relatable terms, like protecting soccer fields of forest.
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Diego Saez Gil
01/29/20
@ Y Combinator
The world emits around 35 to 40 gigatons of CO2 per year, highlighting the enormity of the climate challenge we face. There is about 1 billion hectares on the planet available for forest restoration without competing with agriculture, allowing for the planting of approximately a trillion trees, which could draw down about 200 gigatons of carbon.
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Diego Saez Gil
01/29/20
@ Y Combinator
The potential for reforestation is significant, as planting a trillion trees could offset two-thirds of the emissions released into the atmosphere since the Industrial Revolution.
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Diego Saez Gil
01/29/20
@ Y Combinator
The main issue hindering forest restoration is the lack of incentives for landowners to participate in carbon markets, despite the market's growth of 50% year over year since the Paris Agreement.
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Diego Saez Gil
01/29/20
@ Y Combinator
Starting in 2021, airlines will be required to offset their emissions, creating a demand for carbon credits that is expected to grow significantly.
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Diego Saez Gil
01/29/20
@ Y Combinator
Our goal is to facilitate funding for reforestation and forest conservation, as well as other nature-based solutions like restoring coral reefs and mangrove forests.
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Diego Saez Gil
01/29/20
@ Y Combinator
The lack of trust in carbon offsets stems from a history of transparency issues and insufficient data, which we aim to address by digitizing the carbon credit process.
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Diego Saez Gil
01/29/20
@ Y Combinator
We are transforming carbon credits into digital assets that can be traced online, ensuring transparency in how credits are issued, calculated, monitored, and traded.
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Diego Saez Gil
01/29/20
@ Y Combinator
There are four main types of forest projects: conservation, improved forest management, reforestation, and afforestation, each with different approaches to carbon capture.
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Diego Saez Gil
01/29/20
@ Y Combinator
Sustainable logging practices can enhance carbon capture, as younger trees can absorb more carbon than older trees, depending on species and environmental conditions.
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Diego Saez Gil
01/29/20
@ Y Combinator
Improved forest management practices can create incentives for biodiversity while optimizing for both carbon capture and timber production.
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Diego Saez Gil
01/29/20
@ Y Combinator
We partner with the largest satellite companies to source high-quality imagery and collect lidar data, which is crucial for improving our algorithms and expanding our model globally.
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Diego Saez Gil
01/29/20
@ Y Combinator
Our company has made significant progress in its first year, partnering with major forest project developers and closing deals with recognizable companies interested in carbon credits.
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Diego Saez Gil
01/29/20
@ Y Combinator
Corporations, particularly regulated energy companies, are the primary buyers of carbon offsets, with countries also purchasing at scale. Many companies are taking responsibility for their carbon emissions and striving to become carbon neutral, as sustainability is now a key part of their value proposition.
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Diego Saez Gil
01/29/20
@ Y Combinator
Airlines are proactively offsetting their emissions ahead of upcoming regulations, with companies like Delta and United offering options for customers to offset their flights.
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Diego Saez Gil
01/29/20
@ Y Combinator
In Silicon Valley, employees, customers, and investors are increasingly demanding that companies address climate change by reducing and offsetting their emissions.
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Diego Saez Gil
01/29/20
@ Y Combinator
The future of the carbon offset market will likely involve companies making significant changes rather than individuals offsetting their emissions one flight at a time.
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Diego Saez Gil
01/29/20
@ Y Combinator
Investors are showing a strong interest in climate change startups, recognizing that addressing climate change presents both a significant challenge and a major opportunity for value creation.
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Diego Saez Gil
01/29/20
@ Y Combinator
During fundraising, I found that many investors were eager to learn about climate change solutions, indicating a growing awareness and interest in the sector.
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Diego Saez Gil
01/29/20
@ Y Combinator
I advise those interested in working on climate change to apply to Pachama, but also to consider starting their own companies or finding roles in larger companies focused on climate initiatives.
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Diego Saez Gil
01/29/20
@ Y Combinator
AI combined with various sectors presents numerous opportunities to address climate change, such as optimizing shipments, travel, and agriculture.
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Diego Saez Gil
01/29/20
@ Y Combinator
Taking time for thorough research and engaging with experts is crucial when starting a company focused on climate change, as it helps refine ideas and strategies.
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Diego Saez Gil
01/29/20
@ Y Combinator
Agroforestry and permaculture practices can yield more than traditional monoculture agriculture and are essential for sustainable food production as we aim to feed a growing global population.