• Proposals

  • KIP-37: Integrate Coorest’s CCO2 into Carbonmark and Retirement Aggregator

Summary

Add support for Coorest’s CCO2 digital carbon assets in Carbonmark, as well as KlimaDAO’s Retirement Aggregator.

This proposal is in response to an RFC posted by Coorest on April 19th, 2023: https://forum.klimadao.finance/d/203-rfc-blockchain-native-carbon-tokens-coorest-x-klimadao

Motivation

KlimaDAO seeks to offer a diverse array of carbon credits to its users. This goal can be advanced by adopting new digital carbon assets that undergo review and satisfy requirements around additionality, co-benefits, monitoring, reporting, and verification (MRV), and industry acceptance.

Coorest’s goal is to expand into partner ecosystems like KlimaDAO with their blockchain-native carbon credit token to gain more adoption for their assets.

Initial review, corroborated by discussions with advisors and among the community on the RFC, found that Coorest’s CCO2 digital carbon assets satisfied minimum requirements across the aforementioned factors.

Proposal

Add support for CCO2 tokens within KlimaDAO’s Retirement Aggregator.

KlimaDAO’s Retirement Aggregator serves as base layer digital carbon infrastructure and provides an interface for selecting digital carbon assets for retirement, as well as handling routing between disparate liquidity pools for any required trading to complete retirements. CCO2 support will allow users to retire their CCO2 tokens and create a retirement certificate via KlimaDAO’s infrastructure, as well as via Coorest’s in-house certificate generating mechanism.

Add support for CCO2 tokens on Carbonmark.

Carbonmark is the Universal Carbon Marketplace – an open-source, publicly available carbon credit market for every organization in the world seeking to acquire, trade, or retire carbon credits. Adding CCO2 listing, trading, buying and retiring support on Carbonmark will grant exposure to this asset for our various partners integrating with Carbonmark. Importantly, it will allow CCO2 to be accessed by digital carbon market participants via the Carbonmark interface, providing the same great user experience for both digitized (a.k.a. bridged) legacy credits and digitally-native credits like CCO2.

Implications

Since May of 2022, new carbon supply has been blocked from being digitized due to a moratorium on bridging by Verra, along with Gold Standard and other traditional carbon registries. This proposal, and the support of CCO2 on Carbonmark and KlimaDAO’s RA, will help increase demand for CCO2s, grow digital carbon supply, and provide a greater diversity of digital carbon assets to users of our products and services.

Implementation

Should this proposal pass, KlimaDAO’s product and engineering team will work with Coorest to add support for CCO2s on Carbonmark and our Retirement Aggregator.
Further collaboration related to liquidity provisioning or bonding, as well as hosting Coorest’s CCO2 generating project NFTs on Carbonmark, will be explored at a later date.

Polling Period

The polling process begins now and will end at 18:00 UTC on 29/05/2023. Assuming the forum proposal is approved, it will advance to Snapshot.

Add support for CCO2 listings on Carbonmark and integrate CCO2 into KlimaDAO’s Retirement Aggregator?

This poll has ended.

    optima exciting to see the first new standard formally proposed for integration

    The Coorest team's RFC was thoughtful and informative, and the community raised a variety of concerns, which in my own view were addressed adequately to justify this first phase of integration.

    The only real cost to the DAO from this level of integration is the engineering resources to build it - which should be fairly modest since the credits are issued natively on Polygon. This will also give our engineering contributors an opportunity to generalize Carbonmark a bit so it'll be easier to integrate more credit types in future.

    Considering it's been over a year since bridging from traditional registries was halted, with no clear timeline for when two-way bridging will be permitted, it makes sense to integrate the most promising novel standards like Coorest as they come online - as long as they address key principles and questions around additionality, permanence, monitoring, etc. - even if the supply available is relatively small compared to traditional registries.

      What is the plan should the traditional registries not come back on board? Is there enough momentum in the digital carbon space to not need them?

      I've been very impressed with the professionalism of the Coorest team since coming across them last year, and the thoroughness of their answers to the questions responding to their RFC convinced me that they are a serious outfit that can play a key role in the Digital Carbon Market going forward. Undoubtedly, expanding Carbonmark's array of digital carbon to include credible blockchain-native tokens is a clear win for KlimaDAO and vital for scaling the DCM. I therefore strongly support this integration opportunity.

      At the RFC stage, I gave several recommendations to improve the quality of carbon credits and to set a fair price.
      The Coorest believes that their strategy is successful and token will be in great demand.
      We`ll see...

        carbonadvisor Agree. Price discovery on these assets will be an essential indicator in market acceptance and any hopes of scaling the Coorest solution.

          21 days later
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