Inventory of seven early projects worthy of attention in the carbon credit tokenization track

特邀专栏作者

2022-06-01 03:30

This article is about 5006 words, reading the full article takes about 8 minutes

Recently, carbon credit tokenization projects such as Flowcarbon and Allinfra have received financing from venture capital institutions, and this track is becoming a hot trend in the industry.

AI Summary

Expand

Recently, carbon credit tokenization projects such as Flowcarbon and Allinfra have received financing from venture capital institutions, and this track is becoming a hot trend in the industry.

Author: Cookie, Chain Catcher

More than 130 countries and regions around the world have proposed carbon neutral goals, and green, low-carbon and sustainable development have become an international consensus.

As one of the industries with the fastest energy consumption growth in the past few years, more and more encryption projects are also facing this problem. On the one hand, many exchanges, mining companies buy carbon credits to offset the carbon emissions generated by their operations. On the other hand, many projects help reduce carbon emissions by changing routes or increasing investment. For example, Ethereum shifted to the POS mechanism, Ripple promised to invest 100 million US dollars in the carbon neutral market, and Polygon plans to achieve carbon negative emissions in 2022. Pledges $20 million to fund projects that use technology to combat climate change.

In addition to these routine actions, many start-up encryption projects are trying to tokenize traditional carbon credits, and use blockchain encryption technology to transform carbon credits into tokens that can be split, easy to circulate, and have a transparent mechanism to solve the voluntary carbon market. Existing problems. Compared with the traditional model, carbon credit tokenization can build an efficient carbon trading market and carbon regulatory environment, and further promote carbon emission reduction.

The main model of carbon credit tokenization is to act as a platform for carbon credit transactions, most of which serve institutional investors or companies. Generally adopted solutions include carbon offset, carbon emission reduction, and carbon capture and storage, and the industries involved include forestry, agriculture, and energy industries.

secondary title

Project Introduction

1、 Flowcarbon

Flowcarbon is a Celo-based open source protocol for carbon credits that drives institutional capital into climate change mitigation efforts by tokenizing carbon credits from traditional exchanges. In addition, the agreement aims to become a transparent and threshold-free carbon trading market, which will continue to help companies achieve net zero or net negative carbon emissions.

The Flowcarbon team believes that the most effective way to mitigate climate change is to trade carbon credit tokens. . Traditional voluntary carbon markets are inefficient, opaque, and have high barriers to entry. Various brokers and advisors take commissions as high as 20%, and it is not uncommon for a single type of carbon credit to be sold to different buyers at different prices. Currently, at every step of carbon credit trading (issuance, clearing, settlement, and custody), the transaction process is expensive and slow.

a16z stated on the official website that in the Flowcarbon protocol, on-chain carbon is an innovative tool that can be integrated into the existing DeFi ecosystem as an innovative combination of finance, and is explained by the builders in web3 and a16z For a whole new way to inspire climate positive behaviour. Flowcarbon's GNT is fully backed by the real-time value of off-chain credits, which can be used as collateral, protocol treasury assets, stablecoin reserves, or offset on-chain carbon credits. On-chain carbon credits will be a key part of the financial architecture, driving a zero-carbon future.

Flowcarbon is supported by Adam Neumann, the founder of WeWork, and completed a US$70 million financing led by a16z at the end of May. a16z believes that the carbon credit market may grow to 50 billion US dollars in 2030, and carbon credits on the chain can promote the realization of this expectation.

secondary title

Official website:www.flowcarbon.com

2、Klima DAO

Klima DAO is a protocol that seeks to drive climate action by accelerating the price appreciation of carbon assets through its KLIMA token. To incentivize emission reductions by driving up the price of carbon assets, each KLIMA token is backed by real-world carbon assets.

The reserve asset of Klima DAO is Base Carbon Ton (BCT), which is a carbon offset index token representing a basket of carbon emissions including TCO2. Each TCO2 unit represents an individual carbon offset that users can purchase on the Polygon blockchain through the Tucano carbon bridge. In addition, TCO2 carbon offsets contain characteristics such as project name and type, serial number and verification year.
Klima DAO is a fork of the popular Olympus DAO protocol that offers users two incentives:

Bonding: Encourage other carbon emission reduction agreements or application projects to participate in Klima's ecological construction. If they are willing to give up the assets on the chain of other agreements or application projects, they can obtain Klima's assets on the chain equivalent to the public market and corresponding discounted rewards as compensation.
Staking: Encourage participants to hold assets on the Klima chain for a long time, allowing holders to receive rewards and participate in governance. Participants who mortgage Klima will get 1:1 sKlima, and hold sKlima to obtain corresponding income according to the length of time and the floating interest rate of re-baseline.

3、Nori

Nori is a blockchain-based carbon removal platform founded in 2017 and headquartered in Seattle, Washington. Nori's goal is to create a marketplace that solves double counting and fraud in existing marketplaces and builds a strong economy around carbon removal.

Suppliers first register their carbon removal projects with the Nori platform, report the carbon removal cases taken, and provide enough data to establish an accurate project baseline. Once project data is fully entered, the Nori platform commissions an independent third-party carbon quantification tool to estimate carbon removal, and then uses that estimate to determine the amount of NRT tokens to create for suppliers. Afterwards, buyers can purchase NRT directly from suppliers on the Nori marketplace and receive a carbon removal certificate. In Nori's marketplace, suppliers receive the total price of NRT purchased, and Nori charges buyers an additional 15% transaction fee. One NRT represents one ton of CO2 removed.

secondary title

Official website:https://nori.com/

Related Reading:"How Nori Protects Landowners》

4、JustCarbon

JustCarbon, a trading platform that simplifies carbon offsetting and supports high-quality carbon removal projects to combat climate change, aims to address these challenges through a symbiotic token system: JustCarbon Removal Unit (JCR) and JustCarbon Governance (JCG).

JCR tokens can be generated after physical tons of carbon are removed from the atmosphere and verified. The role of JCR is to connect project developers and buyers more directly. Holders can "burn" or "decommission" JCR to offset carbon emissions. JCG holders will have the right to propose and vote in the centralized autonomous organization DAO.

Carbon removal assets procured by JustCarbon must be Gold Standard or Verra (VCS) certified producers and have minted additional CCBA certification within the past five years.

According to JustCarbon's official website, JustCarbon only provides carbon offset personal services for buyers who spend more than $10,000. Buyers can fill in the carbon offset offset and contact information to be purchased on the official website, and use PalPay to pay. JustCarbon charges a 5% handling fee during the process.

secondary title

Official website:www.justcarbon.com

Related Reading:"JustCarbon Whitepaper》

5、Toucan Protocol

Toucan Protocol is a protocol that brings carbon as a currency Lego building block to Web 3.0, aiming to turn carbon credits into programmable assets and fundamentally improve the traditional carbon market. The protocol mainly implements tokenization through the functions of Carbon Bridge and Carbon Pools.

Specifically, these carbon credits are transferred from the traditional market and transferred to the chain through the Toucan Carbon Bridge, minted into a BatchNFT containing all the information of the carbon credits. The carbon pool further splits BatchNFT into TCO2 tokens for easy circulation in the market. This two-way anchoring and traceable method avoids the problem of double spending of assets.

secondary title

Official website:https://toucan.earth/

6、Coorest

Coorest is a platform for blockchain-based carbon credit solutions backed by real-world assets (land, buildings, and trees) designed to address the inefficiency of carbon calculations.

Coorest's NFTrees are non-fungible tokens associated with real-world trees. The carbon token $CCO2 generated by NFTrees is equal to the amount of carbon removed from the atmosphere by its real-life counterpart. Holders of NFTrees will start collecting $CCO2 tokens the moment the tree is planted. Currently, Coorest owns fruit trees and forests in Zaragoza, Spain and New York, USA.

secondary title

Official website:https://coorest.io/

7、Moss Earth

Moss Earth, a climate technology company focused on environmental services, simplifies the offsetting process and guarantees traceability and transparency by using blockchain technology. In 2020, it will use the 150,000 carbon credits generated by the Amazon rainforest every year as its asset reserves. These carbon credits have passed the verification and registration of the standard agency Verra, and by freezing the carbon credits of Verra's centralized trading center, mint assets on the MCO2 chain for transactions buy and sell. Users can purchase, store and offset MCO2 to protect the atmosphere.

Moss Earth mainly uses funds from carbon credits on the platform in three ways:

Reforestation: Projects that sequester greenhouse gases from the atmosphere by reforesting with native species.
Reforestation: Projects that sequester greenhouse gases from the atmosphere by reforesting with native species.
Carbon Sequestration Credits: Reduce greenhouse gas emissions by collaborating on projects that promote sustainable agriculture through agroforestry systems or reduce the use of chemical fertilizers.

Summarize

Official website:https://moss.earth/

Summarize

With the increasing importance of global carbon emission reduction, whether it is Flowcarbon, Allinfra, which has recently obtained financing, or Moss Earth, which has cooperated with many companies, it shows that carbon credit tokenization may be more convenient than traditional governance methods. This is a solution that makes it easier for the public to participate in carbon-neutral climate governance, and blockchain-based tokens can be combined into DeFi projects to obtain incentives.

However, because the overall transaction process of carbon trading is too complicated, and it is still impossible to bypass the centralized verification agency, the role of carbon credit tokenization is greatly reduced. In addition, some carbon credit tokenization projects are only falsely traded for short-term benefits, and have not truly fulfilled their responsibility to protect the environment. A clearer and more standardized regulatory process is needed in this regard.

On May 25, Verra, the carbon credit standardization organization, believed that carbon credit-related cryptocurrency projects had brought confusion to the market, and many encrypted projects could not bring about the promised climate improvement effects, so they stopped supporting the verification data required for carbon credit tokenization projects . Verra is the institution that issues the largest number of carbon credits and is also the setter of carbon credit standards. This restriction has dealt a serious blow to the carbon credit tokenization project. Without the endorsement of the Carbon Credit Standards Organization, the process of transferring carbon credits from off-chain to on-chain cannot be completed. However, Verra also stated that encryption projects will reopen data support on the premise of stopping fraud and truly maintaining the environment.

At present, both carbon trading and blockchain are industries with a lack of supervision, and their combination process is bound to cause various chaos, but we cannot stop because of fear of failure. a16z quoted McKinsey in its blog post announcing its investment in Flowcarbon Takeaway: These challenges are daunting, but not insurmountable.

Web3.0

Welcome to Join Odaily Official Community