Executive Summary
Transform Hemp into Carbon Credits
The Economic Challenge
Hemp is an incredible crop with validated potential (EU production +84% from 2015-2022). However, traditional hemp farming faces a fundamental economic challenge:
Traditional Model: Grow hemp → Find buyers → Sell at market price → Hope for profit
The Challenge: Farmers must sell hemp to make money, creating dependency on volatile market prices. High land costs require high returns, making profitability uncertain without guaranteed buyers.
Result: High break-even point makes hemp farming risky in commodity markets.
Our Breakthrough: Low Break-Even Point
Secret Trees solves the economic challenge with carbon-funded cultivation:
Our Model: Carbon credits pay for cultivation → Hemp becomes semi-free raw material → Low break-even point = profit even if hemp has zero market value
Key Insight (from An): We get paid to grow hemp that we get to keep. Traditional farmers must sell hemp to make money. We don't need hemp buyers because carbon credits cover our costs.
How It Works:
- Pre-Sold Carbon Credits: Ricardian Contracts guarantee payment before cultivation
- Multiple Exit Strategies: Build cottages, sell hemp products, or store for future use
- Zero Market Risk: Not dependent on commodity prices or finding buyers
Market Opportunity
Total Addressable Market: €690B+
Explosive Carbon Market Growth:
The voluntary carbon market is projected to grow from $2.5 billion (2023) to $100-$250 billion by 2030 - a 40x to 100x increase.
Market Drivers:
- 40% of world's top 2,000 companies committed to net-zero by 2050
- 11.5 billion tonnes of carbon credits needed for current commitments
- 15x minimum growth required just to meet existing pledges
- Early-stage market (no high-frequency traders yet)
Our Positioning:
- 50% below market pricing (€30-45 vs €80-90/tonne)
- Early mover advantage (level playing field)
- Multiple revenue streams reduce risk
Three Revenue Streams:
Corporate Carbon Credits (T1): €27.1B carbon credit market
- Target: 25 million EU SMEs
- Price: €30-45/tonne (below market €60)
- Tax write-off: 30-50% savings
Consumer Subscriptions (T2): €42.4B+ ESG market
- Target: Climate-conscious consumers
- Price: €10/month (0.1 tonne CO₂/year)
- Simple, no tokens
Eco-Tourism: €1.5B+ sustainable tourism
- Hemp cottages for rent
- €9-25K per cottage per year
- Self-funding after Year 2
Business Model
Two-Tier System
Tier 1: Corporate Carbon Credits (CCT)
- Pre-sold via Ricardian Contracts
- 1 CCT = 1 tonne CO₂ sequestered
- Delivered after hemp harvest (12-18 months)
- Blockchain verified (MRV device tracking)
Tier 2: Consumer Subscriptions
- Simple monthly payments (€10/month)
- Automatic carbon offsetting
- NO tokens, NO complexity
- 20% cottage booking discounts
Tier 3: Rewards (Launch LATER - Phase 3)
- NFT (Phase 2): Membership for Governance Access
- LEAF (Phase 3): Reward token for active governance
- Plan: Build after T1 & T2 proven
Competitive Advantage
Why We Win
Demand-First Model
- Buyers commit BEFORE hemp is grown
- Eliminates market risk
- Solves $17M+ industry problem
Blockchain Transparency
- MRV devices track CO₂ in real-time
- Blockchain verification ensures integrity
- Working towards EU CRCF certification (Q3-Q4 2026)
Below-Market Pricing
- €30-45/tonne vs €60 market rate
- 25-50% discount for corporations
- Tax write-off benefits (30-50% savings)
Multiple Revenue Streams
- T1: Corporate pre-sales (€30-40K)
- T2: Subscriptions (€20-30K)
- Eco-tourism: Self-funding after Year 2
Traction
Current Status (November 2025)
Platform:
- ✅ V1 MVP operational (app.secrettrees.io)
- ✅ V2 homepage live (secrettrees.io)
- ✅ Documentation site complete (docs.secrettrees.io)
- ✅ Two-tier model validated
Property:
- ✅ 14 hectares in Brocēni, Latvia
- ✅ Phase 1: 1 hectare demonstration (€130K)
- ✅ Expansion: 13 hectares available
Documentation:
- ✅ 100% investor-ready materials
- ✅ EU CRCF compliance research
- ✅ MiCA compliance analysis
- ✅ Complete business model
Financial Projections
Phase 1: Bootstrap (Year 0-1)
Funding Target: €130K from 3 sources
Corporate Pre-Sales: €50-60K
- Pre-sell 14 tonnes CO₂
- 50% upfront payment
- Ricardian Contract guarantee
Subscriptions: €10-15K
- 200-500 subscribers at €10/month
- Pre-selling Year 1 CO₂ allocation
- 6-month prepaid option
Investors: €55-65K
- Platform development
- Infrastructure setup
- Legal & compliance
Use of Funds:
- €28K: Land preparation (Zone 3)
- €15K: Hemp cultivation (1 hectare)
- €10K: Hempcrete processing
- €12K: Cottage construction (1 cottage)
- €10K: Platform development
- €5K: Legal & MiCA compliance
- €5K: Marketing & documentation
Phase 2: Growth (Year 2-5)
Self-Funding Model:
- Year 2: €562K revenue (eco-tourism + carbon credits)
- Year 3: €1.36M revenue (2-3 cottages)
- Year 4: €3.30M revenue (5-7 cottages)
- Year 5: €7.27M revenue (10-14 cottages)
ROI: 95-160% over 5 years
The Team
Founders
Ilvers Sermols - Founder & CEO
- Property owner (14 hectares, Brocēni, Latvia)
- 50-year commitment to Secret Trees Gardens
- Technical background and platform development
Ilze - Co-Founder
- Family business partner
- Local community connections
- Operational management
Advisors
- Legal counsel (EU crypto-asset specialist)
- Carbon methodology expert
- Blockchain development team
The Ask
Phase 1: €130K Bootstrap
What We're Offering:
- Pre-purchase carbon credits (corporations)
- Monthly subscriptions (individuals)
- Platform investment (investors)
What You Get:
- Corporations: Below-market carbon credits + tax write-off
- Individuals: Simple carbon offsetting + cottage discounts
- Investors: Support sustainable platform + potential returns
Timeline
Year 0 (2025-2026):
- Raise €130K from 3 sources
- Build 1 demonstration cottage
- Cultivate 1 hectare hemp
- Generate 14 CCT tokens
Year 1 (2026-2027):
- Deliver CCT to corporate buyers
- Expand to 2-3 hectares
- Build 2nd cottage
- Achieve positive cash flow
Year 2+ (2027-2030):
- Self-funding growth
- Scale to 10-14 cottages
- Open platform to other communities
- Expand across Europe
Legal & Compliance
EU MiCA Compliant
- CCT: Utility token (NOT security)
- Subscriptions: Simple service (NO tokens)
- NFT: Governance Membership (Phase 2)
- LEAF: Governance Reward Token (Phase 3)
Carbon Methodology
- Working towards EU CRCF certification (Q3-Q4 2026)
- Scientific hemp sequestration: 8-22 tonnes CO₂/ha/year
- MRV device tracking: Real-time blockchain verification
- Third-party verification: Independent audits
Tax Benefits
- Corporations: 30-50% tax savings (year of purchase)
- Individuals: Support sustainable projects
- Investors: Utility token structure (basic KYC only)
Why Now?
Market Timing
Carbon Markets Growing
- EU ETS2 launching 2028
- Corporate demand increasing
- €60/tonne market rate rising
Hemp Construction Gaining Traction
- Sustainable building materials
- EU Green Deal support
- Growing consumer awareness
Blockchain Adoption Increasing
- Transparency demanded
- MRV technology proven
- EU MiCA framework established
Next Steps
For Corporations
- Review Ricardian Contract - Pre-purchase carbon credits
- Schedule discovery call - Discuss your CSR goals
- Sign contract - Lock in below-market pricing
For Individuals
- Subscribe - €10/month carbon offsetting
- Track impact - Monthly reports
- Visit cottages - 20% discount on bookings
For Investors
- Review materials - Complete investment documentation
- Schedule meeting - Discuss Phase 1 bootstrap
- Participate - Support sustainable platform
Contact
Email: ilvers.sermols@secrettrees.io
Phone: +371 25285999
Website: secrettrees.io
Platform: app.secrettrees.io
Documentation: docs-staging.secrettrees.io
Transform hemp into carbon credits. Join us today.