This RFC is in response to KlimaDAO releasing an ‘alternative standards framework to analyze novel carbon certification and offset issuance standards.
It’s Coorest’s goal to expand into partner ecosystems like KlimaDAO with our blockchain-native carbon token to gain more adoption for these types of assets.
The text below provides an overview of our platform, answers to KlimaDAO’s Alternative standards framework, and serves as a starting point for KlimaDAO’s community to analyze a partnership together.
Coorest introduces a new carbon standard and a platform based on blockchain technology to cut out the middleman allows for easy and transparent access to carbon compensation.
The certified Coorest Carbon Standard focuses on newly planted trees (additionality) only and allows the onboarding of farmers and green projects globally enabling them to generate and monetize their carbon sequestration efforts. Besides onboarding green projects, Coorest has its own in-house tree planting operations in Spain. All projects are monitored via satellite data (dMRV) to warrant the continuity and transparency of carbon sequestration efforts.
The Coorest carbon ecosystem has the following tokens; NFTree, CO2 token ($CCO2) and Proof of Carbon Compensation certificate (NFT). Through the tokenization of trees, absorbed CO2 and the claim on carbon compensation, the problem of double counting of compensated carbon emissions is avoided. Via the Coorest dApp, individuals, companies, and institutions can easily compensate for their carbon footprint while having maximum transparency.
#Responses to KlimaDAO’s Alternative Standards Framework
How does your standard address the following concerns regarding carbon credit integrity?
Real: All emission reductions and removals—and the project activities that generate them—shall be proven to have genuinely taken place.
** How does your standard prove that emissions reductions and removals have taken place?**
Coorest uses MRV data for minting CO2 tokens. We have a monthly biomass datafeed via Chainlink DON directly integrated into the CO2 token minting functionality. We use biomass as an indicator for vegetation presence and growth backing up our CO2 absorption calculations. We are adding and integrating satellite CO2 absorption data to validate the CO2 token amount. Therefore, we have a 2-step verification in the CO2 token minting. Step1: check if the trees are present Step 2: check Co2 absorbed amount (this is currently under develoment)
** Does your standard involve verification via remote sensing technology and/or other digital means?**
Coorest uses biomass satellite data via our partner Floodlight Chainlink Oracle. Once a month the Coorest smart contract makes an oracle call to update all projects.
** Measureable: All emission reductions and removals shall be quantifiable, using recognized measurement tools (including adjustments for uncertainty and leakage), against a credible emissions baseline.**
** How is a project baseline determined with your standard?**
The baseline scenario in CCS consists of the current rate of sequestration; and the current amount of carbon that is stored in the existing vegetation. It is stated in the CCS document that “in the event project activities have started prior to calculating the baseline, the project needs to estimate the above-ground biomass using historical information about vegetation type and satellite imagery for estimating vegetation density”. Coorest has developed Coorest Sequestration Factor database (CSFD) for the calculation of baseline carbon sequestration. The database requires input of diameter at breast height, height of tree values.
** Should baseline determination be dependent on the methodology applied within your standard, please include those details here.**
All details rgarding baseline scenario can be found here: https://coorest.io/wp-content/uploads/2022/09/ESPL_-Coorest_Carbon_Standard__Methodology_Certification.pdf
** Permanent: Carbon credits shall represent permanent emission reductions and removals. Where projects carry a risk of reversibility, at minimum, adequate safeguards shall be in place to ensure that the risk is minimized and that, should any reversal occur, a mechanism is in place that guarantees the reductions or removals shall be replaced or compensated. The internationally accepted norm for permanence is 100 years.**
** How is permanence determined within your standard? How does this differ between supported methodologies within your standard?**
Permanence is determined by the minimum amount of that the trees will stay in place after being planted. However, trees are always exposed to external risk threathening the permanence. Therefore, we are developing a tree and carbon token insurance with Etherisc to insure the trees and CO2 tokens. Read more about the parametric insurance: https://coorest.io/first-on-chain-carbon-insurance/
** Does your standard adhere to the internationally accepted norm for permanence (100 years)?**
No, we have a minimum of 20 years at this moment.
** Additional: Project-based emission reductions and removals shall be additional to what would have occurred if the project had not been carried out.**
Does your standard adhere to the principle of additionality? If not, what measures do you have in place to ensure that finance generated from the sale of offsets under your standard are contributing to the fight against climate change?
Additionality has been a deeply focused principle in the Coorest Carbon Standard. The projects wishing to be registered in CCS have to demonstrate the additionality principle. This component is achieved via additional sequestration or emission reduction through implementation of project activities over and above what would have occurred in a baseline scenario and without the revenue generated by the sale of offsets. The eligible project activities under CCS are: • new tree planting, • improving soil characteristics, • enhancing biodiversity through agroforestry methods, • avoiding monoculture by positively affecting biodiversity, • and no intentional deforestation prior to planting new trees.
If adhering to the additionality principle, how is additionality determined under your standard?
CCS requires project owner to confirm on additional activities planned in the project area that would benefit the project, activities should not be mandatory in the project location, and no land use change or deforestation took place in the past. Coorest will analyze, on a case-by case basis and in accordance with the specific circumstances of every single project, whether each project complies or not with the additionality requirement.
Independently verified: All emission reductions and removals shall be verified to a reasonable level of assurance by an independent and qualified third-party. ○ How is third party verification undertaken by your standard?
The CCS has been audited by Earthood. All our tree planting projects are monitored by Floodlight satellite data and put on-chain via Chainlink DON. This data is required to mint CO2 tokens. Coorest itself can’t mint CO2 tokens.
** Assuming third party verification takes place by entities outside of your organization, how are such entities evaluated?**
Coorest is a data driven organisation, utiising near- real term satellite data to verify emission removals
** Please include additional information related to the verification of emissions reductions and removals under your standard which you see as advantageous to the integrity and climate impact of your projects.**
** Unique: No more than one carbon credit can be associated with a single emission reduction or removal as one (1) metric ton of carbon dioxide equivalent (CO2e). ○ Do you adhere to the uniqueness principle?**
Yes. Our projects are not issuing offsets under another standard or project development activity.
** Does your standard support the issuance of carbon credits in units greater or less than 1 metric ton (CO2e)?**
The Coorest CO2 tokens ($CCO2) equals 1 kilogram of absorbed CO2
** Does your standard support the fractionalization of carbon credits after their initial issuance?**
Ex-post vs. Ex-ante
Currently, forward carbon credits issued under Gold Standard’s forestry projects (Planned Emission Reductions), ex-ante Plan Vivo Certificates and Temporary or Long-term CER (t/l-CER) are not considered valid for making environmental claims because they do not meet ICROA requirements on verification and permanence.
KlimaDAO holds the view that any credits utilized for offsetting claims should be ex-post; ergo, no ex-ante credits can be utilized in our Retirement Aggregator.
Does your system allow users to make claims analogous to traditional retirement prior to the final verification of the underlying environmental claim?
The CCO2 token are overcollateralized and released in aprox the same rate as the trees are absorbing CO2. Therefore, each token represents an actual kilogram of absorbed CO2.
If your system facilitates forward or ex-ante credits, how do you ensure that no claims are made on the underlying environmental benefit until after verification and subsequent retirement?
Many projects that issue carbon credits under traditional standards have so-called “co-benefits” associated with their activities, typically classified according to the Sustainable Development Goals. How does your standard assign and quantity co-benefits?
- All projects onboarded by Coorest generate their own CCO2 tokens. Coorest isn’t the custodian of their tokens, making us a decentralised platform. Proceeds of CCO2 token sales go directly to the green projects.
- Coorest introduces the proof of carbon compensation certificates (PoCC) that can only be generated by burning CCO2 tokens, thereby, removing the double counting/claiming issue.
Ultimately the value of any environmental service credit derives from the willingness of an end-user to purchase and consume that credit for its intended end-use (a.k.a. retirement). Traditional corporate buyers, who make up the bulk of current demand for carbon credits, look to industry organizations like the International Carbon Reduction and Offset Alliance (ICROA) or Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) for guidance on which carbon credits are appropriate for their needs. As such, recognition of any new standard by these bodies goes a long way toward indicating the level of acceptance those credits will receive among existing market participants.
** Has your system been endorsed by any of the mainstream VCM associations, such as ICROA or CORSIA? If not, are you pursuing such an endorsement?**
Not yet, we are open to pursuing ICROA endorsement.
** Have any traditional buyers (e.g. corporates) purchased and retired credits issued under your system? If so, please indicate the estimated volumes retired in the past year. If no retirements have occurred in the past year, please provide an estimate based on current buyer commitments.**
Both retail and small companies have used CCO2 tokens to generate 141 PoCC certificates. 39,733 kilograms have been retired since October 2022.
Proof of Carbon Compensation certificates contract:
Coorest token users:
1.Apparel group / Tommy Hilfiger purchased 100 NFTrees that generate 25.000 CCO2 tokens yearly.
2.DexTrac (Chainlink node operator)
3.AG digital marketing agency
#Interest in partnering with KlimaDAO
Coorest views KlimaDAO as a well established company in the blockchain VCM. This partnership comes as a logical next step for Coorest as both companies operate on Polygon and serve the same carbon compensation needs. Collaborating expands KlimaDAO’s offering with new crypto native assets and helps Coorest grow liquidity for CCO2 tokens.
We would like to list CCO2s on Carbonmark and eventually list the fractionalized NFTrees that represent ownership of the carbon projects themselves.