Published Tue Mar 15 2022
As it seeks to develop a base cryptocurrency backed by carbon, with KLIMA becoming the dominant means to exchange carbon on the blockchain, KlimaDAO needs innovative partners who share its long-term vision of a carbon-neutral – and even climate positive – world. One of the most exciting new projects in this space is DeltaWave Energy. DeltaWave provides information and data services to energy companies, leveraging the technology and tools of the blockchain to revolutionize this process. We are pleased to share more about our partnership with DeltaWave, bringing the ease of on-chain carbon credits to oil and gas companies.
DeltaWave grew out of the pressing need to improve the financial and climate reporting of energy companies. Energy companies – typically producing oil or gas – have a long lag-time of between 60 and 90 days in their ability to report well production. Additionally, there are concerns regarding transparency, verification, and reporting standards across the industry, with each company having slightly different methods of calculating and reporting well production. These concerns are of great relevance, inter alia to partners and interested parties who conduct business with these companies.
Blockchain – with its transparent and inalterable ledgers – is ideally placed to solve such problems. DeltaWave functions as an integrated operating system for its clients, leveraging the advantages of blockchain technology to establish transparent, real-time reporting. In addition, it directly addresses the lag in reporting production by employing neural networks in order to predict well production near instantaneously.
In providing information and data management to the energy sector, DeltaWave has also recognized an opportunity to move into the space of ESG reporting. ESG refers to a company’s impact in the environmental, social, and governance domains. Energy companies are recognizing that, while their work remains critical to the global economy, the energy sector has begun the transition away from fossil fuels, toward renewable energy and sustainability.
As a result of this transition, these companies are required to have a keen interest in ESG reporting, compliance, and carbon offsetting. DeltaWave’s data will allow them to create a detailed, public dashboard showing the carbon footprint ‘debt’ of a corporation’s activities that can be broken down by individual project.
As with well production data, carbon-footprint data in the energy markets is often inconsistent, opaque, or greenwashed. DeltaWave’s use of the blockchain, with its public ledger and transparency, allows for more standardized and trustworthy reporting.
Additionally, energy companies are interested in the ability to offset some or all of their emissions. By integrating a carbon offsetting function into its existing interface, DeltaWave is able to increase the value it provides to its clients. This is where the partnership with KlimaDAO comes in.
DeltaWave is partnering with KlimaDAO as a Klima Infinity partner in two separate ways. As with many organizations, DeltaWave will be offsetting its own carbon footprint through Klima Infinity in order to become a carbon neutral organization. This includes the footprint of its servers and other infrastructure.
DeltaWave is also integrating the Klima Infinity suite, in order to provide a seamless carbon offsetting service to oil and gas companies. DeltaWave clients will be able to purchase and stake KLIMA in order to increase their offsetting power. At their discretion, they can then send a portion of their staking rewards, or the underlying principle, toward retiring the underlying carbon credits they choose.
Clients can retire the underlying tokenized carbon credits, selecting from carbon pools such as Toucan’s Base Carbon Tonne, Moss’s MCO2, or C3’s UBO and NBO tokenized carbon credits. Through Klima Infinity’s offsetting function, they will be able to compare the quality and standards of these pools, selecting the pools that fit their organization’s mission. If they so choose, clients will be provided with enough granular detail to allow them to choose only the credits of specific projects. For example, if an oil company specifically wants to help reforestation projects in the Amazon rainforest, they can do so.
In this way, DeltaWave will function as a vault or bank, allowing energy companies to buy and store KLIMA with them, receive staking rewards, and retire them when they so choose. Using on-chain carbon tokens from the KlimaDAO vault, energy companies gain access to substantial liquidity, transparency, and convenience – advantages that are unavailable to them in the traditional voluntary carbon market. DeltaWave OS seamlessly integrates this process with its carbon footprint calculator and public reporting, creating a unified tool for companies to use.
DeltaWave also enables clients to establish an additional revenue source. For example, companies could make changes to their production methods that reduce their carbon footprint, and in so doing, certify, bridge, and sell carbon credits through DeltaWave. By establishing bi-directional flow of carbon credits, DeltaWave is leveraging web3 technologies with the aim of helping transition the energy industry toward greener methods and operations.
For DeltaWave, this partnership will allow it to expand its range of services, becoming a fully integrated tool for companies to understand and offset their carbon footprint in one place. Revenues from KLIMA staking will also provide operating income for DeltaWave.
For KlimaDAO, this partnership establishes a bridge to the energy industry, expanding the scope of the on-chain carbon market. Energy companies are not technology companies, and therefore will not often possess the expertise or interest in blockchain technologies to participate in the KlimaDAO Protocol directly. DeltaWave is effectively providing a technology service to these companies, thus making KlimaDAO more accessible to a wider range of clients.
Ultimately, for both organizations, this partnership will help accelerate the development of the voluntary carbon market – an important tool in the process of reducing greenhouse gas emissions, and incentivizing climate positive action.
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