Our second ON SET session – Leveraging Digital Carbon – built on the momentum of our first session with 500 registrants and 197 attendees across 53 countries, with the United States, United Kingdom, and Germany most represented.
The session started with a brief recap of digital carbon and carbon pools, which were covered in depth in the first session: Fundamentals of Digital Carbon. Our three guest speakers then shared how their organizations leverage digital carbon across each stage of the carbon market value chain: Juan Duran (CEO of EcoRegistry), Wassim Sahibi (Trader and Portfolio Manager at SCB Group), and Ryan Fleischmann (SAP Architect and Developer Evangelist at Provide) each shared case studies, which we have summarized below.
Finally, KlimaDAO’s Head of Product Gabriel Kent unveiled Carbonmark, which is set to revolutionize demand in the Digital Carbon Market by enabling the instant and direct sourcing of over 20 million tonnes of verified digital carbon with 0% additional fee – and to catalyze supply by enabling sellers to open their own digital carbon storefronts.
The ON SET #2 webinar recording
The ON SET #2 webinar recording is now available on YouTube:
Takeaways from the session
Juan Duran, CEO, EcoRegistry
Juan shared how EcoRegistry is bringing integrity to the Digital Carbon Market through the issuance of digitally native carbon credits. EcoRegistry makes it easier for project developers to sell their credits by providing buyers with full information on the origin and characteristics of carbon credits. As the first blockchain-based carbon registry to connect with the World Bank’s Climate Action Data Trust, EcoRegistry is secure and interoperable. This is key to scaling the carbon market, as increased interoperability between registries and market participants can reduce administrative burdens and integration costs.
Wassim Sahibi, Trader and Portfolio Manager, SCB Group
Wassim shared how the Digital Carbon Market unlocks new capital for carbon offset projects by reducing bottlenecks around measuring, reporting, and verifying carbon credits. The Digital Carbon Market allows for early price discovery for the credits issued by carbon projects, key to de-risking and reducing exposure for project developers. One such example is SCB’s recent project, partly funded by the KlimaDAO treasury, providing 100,000 smokeless cookstoves to Rohingya Refugees in Bangladesh.
Ryan Fleischmann, SAP Architect and Developer Evangelist, Provide
Ryan shared how digital carbon enables Fortune 500 companies to programmatically offset the emissions of their supply chains. Provide has just revealed its Provide ECO platform, which is a stepchange for carbon offsetting demand: Provide ECO enables carbon retirement as-a-service for enterprises using SAP and ServiceNow. Enterprises will be able to integrate carbon offsetting into their operations and benefit from the full traceability of digital carbon, from credit issuance all the way to retirement. Provide ECO demonstrates how powerful use cases can be built with KlimaDAO’s open-source carbon retirement aggregator.
The Carbonmark reveal
To wrap up an insightful session, Gabriel Kent, Head of Product at KlimaDAO, unveiled Carbonmark – the universal carbon marketplace. With tens of millions of verified digital carbon credits from hundreds of projects, Carbonmark will be the primary platform for every organization in the world wanting to acquire, trade, or retire carbon. With 0% additional transaction fee, and open access for both demand and supply-side market participants, Carbonmark is designed to enable carbon project developers, brokers and commodity traders, organizations, and individuals to leverage a seamless user experience to drive climate impact.
We are excited to share more about Carbonmark in the coming days and weeks – to be the first notified when the Carbonmark public beta becomes available, and to gain access to insights and guided walkthroughs, register now for ON SET #3.
The most asked questions at ON SET #2 | Leveraging Digital Carbon
Over 30 questions were asked during the session – we have provided responses below:
Questions about digital carbon
How does the Digital Carbon Market improve the quality and transparency of carbon credits?
The Digital Carbon Market will provide widely accessible, high quality data on projects, thereby allowing stakeholders to compare projects and establish benchmarks for quality, price, and other key criteria. For example, Carbonmark provides various information associated with a project including a project’s origination documents, with every transaction on the blockchain.
Hi Drew, I have a post on D-MRV to share that may be useful to the discussion: https://parisii.io/home/f/d-mrvwhat-is-it-and-why-does-it-matter
Thank you, I will take a look at this.
What happens if the validity of certifications, from Verra for example, are questioned by market participants? What is KlimaDAO’s position on that? What happens to KlimaDAO if people lose trust in the certification institutions?
Digital MRV is one area we're excited about because an additional layer of certification regarding the integrity/quality of projects can be achieved at a much more rapid pace (often, current verification schemes take place every 2–4 years). These digital MRV updates could be streamed in 'live' to offsets on-chain to provide greater assurance of the projects' integrity. KlimaDAO will leverage new digital tools as they come online and are proven to help facilitate high-quality offset trading.
How do you see the level of scrutiny of carbon projects nowadays? How far are we from preventing greenwashing?
Answered live. Refer to recording.
Questions about KlimaDAO
What happens when the treasury (18m tonnes) is empty or demand outstrips supply?
We anticipate that supply will grow over time.
What is the relationship between KlimaDAO and Carbonmark? How does KlimaDAO and $KLIMA benefit from Carbonmark? Will the Carbonmark marketplace work with $KLIMA? Or have its own token?
What role does the KLIMA token play in Carbonmark?
As a long-term KLIMA holder, how does this affect the value of the token going forwards?
What is the initial and planned revenue model of Carbonmark? It was said to be zero transaction fee, but nothing more about cost and revenue. Asking to better understand the long-term economic sustainability and strategy of this great initiative!
Is it zero transaction fee for both customers and developers looking to list projects or is it zero additional transaction fee? How do you make your money?
The Carbonmark revenue model is 0 fees. It is a marketplace built by the KlimaDAO team.
KlimaDAO's aim is to increase throughput in the Digital Carbon Market, in order to accelerate the delivery of climate finance. KlimaDAO is the economic engine of the DCM. Carbonmark is built to support this aim, by making the DCM super easy, fast, and cheap to navigate – both for buyers and sellers.
Basically, KlimaDAO provides the infrastructure rails, while Carbonmark is a market-facing product that abstracts away some of the Web3 complexity and increases the functionality of existing tools.
In terms of how KlimaDAO and Carbonmark come together, we will have more interactions on this with the community and will publish some blog posts that will make everything clearer shortly. For now, it is best to think of Carbonmark as an evolution of KlimaDAO that allows it to interact with the wider market and help the VCM evolve by opening up the ability for anyone to buy and sell digital carbon through a universal marketplace.
Do you have any plans for future integrations with new carbon liquidity pools? As a ReFi builder, can you advise who at KlimaDAO/Carbonmark is the best point of contact for partnerships/integrations?
Please reach out to email@example.com.
Questions about Carbonmark
When will Carbonmark be available to the public?
Sometime in March.
Will Carbonmark work with KLIMA Token?
Yes! You can also use USDC and other carbon assets. And also a credit card!
How can you log into Carbonmark?
You can login with an email address, social account, or Web3 wallet.
Will Carbonmark be mobile compatible?
Yes, carbonmark.com will look great in your phone browser, but there is no dedicated app right now.
How does Carbonmark interact with the KlimaDAO infrastructure?
Carbonmark acts as a Web2 interface that sits on top of KlimaDAO’s Web3 infrastructure. There is two-way connectivity between the Carbonmark and KlimaDAO infrastructures. Carbonmark uses KlimaDAO’s infrastructure to clear trades and source the current inventory of digital carbon credits, and KlimaDAO will have access to any new carbon listed directly on Carbonmark.
When will the Carbonmark website be open to the public?
Please post the link / website for the carbon market.
Where can we sign up to get the news of Carbonmark being released?
Carbonmark.com will be launched later this month, so stay tuned.
As a Blockchain DeFi/ReFi developer how can one interact with Carbonmark?
Join our Discord server, where you can connect with the wider community and team.
How will you bridge credits?
Does Carbonmark only trade ex parte carbon credits? Does it include tokenized forward purchase commitments, and other purchase agreements of ex ante credits?
How is Carbonmark going to interact with carbon pools? Are you creating your own pools?
Would you accept blockchain native dMRV carbon credits?
KlimaDAO has incentivized the creation of a number of digital carbon liquidity pools, including BCT, NCT, etc. Carbonmark will allow people to list specific projects as well that they bridge over (without needing to deposit in any carbon pools).
We will provide further information here in subsequent blog posts. Be sure to watch out for our launch later this month and tune in to ON SET #3: Carbonmark for more information about how the marketplace functions.
Are there fees for project developers? Is it straightforward to connect a project proponents account to the Carbonmark platform to transact the credits?
This will be explained in more detail following launch.
How can you log into Carbonmark?
It will be possible to log in with your web3 wallet, or with social sign-ins where you can create a profile on the website.
Will Carbonmark be available in a mobile phone app edition?
The website will be accessible and usable on mobile browsers
Questions about EcoRegistry
Where is it possible to check the standards applied for projects
On which Blockchain does EcoRegistry operate?
Under the project view, you can check on the technical information tab and there is the information. There is an example at the following link: https://www.ecoregistry.io/projects/60
EcoRegistry operates under a Multichain private network and is connected periodically to a public network that we use as a backup system. We are also connected to the Chia Network via the CAD-Trust.
How are carbon storefronts validated as high quality?
Answered live by EcoRegistry. Refer to recording.
Which pool / project can be considered to be the highest quality? Is there an overview?
https://carbon.klimadao.finance gives an overview of pools.
Thanks but my question was about the quality. Does EcoRegistry answer this?
While generally every carbon credit represents one tonne of CO2, nature-based projects typically have greater bundled impact, so: NBO, NCT, and MCO2.
Questions about SCB Group
To StarCB/ KlimaDAO: What do you mean by origination? What are the costs? Why does money need to go back to that?
What do you mean by origination? Financing and developing new carbon reduction/removal projects.
What are the costs?
Depends on the project type (renewable energy, clean cooking solutions, reforestation, blue carbon..), scale, location and a few other factors.
Why does money need to go back to that?
To generate more climate, biodiversity, and social impacts – to help improve the lives of millions of people in hard-to-reach communities – to reforest heavily deforested areas – to protect existing biodiversity...
How can you guarantee that part of the token price will go to the project’s activity (e.g. CCB)? Is part of the token held for that purpose?
Essentially you are using technology from NFTs (non-fungible tokens) which allows for a 'royalty' to be paid to a specified blockchain address when they are traded. This address can be set up by a project developer.
Questions about Provide
How does commerce play a role in getting those atomic offsets? I am thinking of customer orders. Is that a use case as well for Scope 3?
Answered live. Refer to recording.
Hi Ryan! Your solution with Provide is fascinating, and highly relevant to the work I am doing at EY Blockchain to help enterprises manage their carbon footprint. I’d love to connect and discuss more. What is the best place to reach you?
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