Summary
To promote KlimaDAO's vision of providing the transparent, neutral, and public infrastructure necessary to accelerate climate finance on a global scale, we will begin a pilot for J-Credits in Japan.
About J-Credits
Under the J-Credit Scheme, the Japanese government certifies the amount of greenhouse gas emissions (such as CO2) reduced or removed by sinks through efforts to introduce energy-saving devices and manage forests, as "credit.“
This scheme, which was created by expansively integrating the Domestic Credit Scheme and the Offset Credit (J-VER; Japan's verified emissions reduction) Scheme, is administered by the central government.
Credits created under the scheme can be used for various purposes, such as achieving the targets of the Nippon Keidanren's Commitment to a Low Carbon Society, and carbon offset.
Partnership & Actions
Pilot Activities
Core Activities
- Utilize MORI-NFT’s J-Credit registry account to hold credits during a pilot.
- A ‘digital twin’ of held credits will be created via C3’s infrastructure.
- Tests will be conducted related to: 1) retirement on-chain; 2) API communication with MORI-NFT for reflecting retirements in their J-Credit account; 3) auditing of MORI-NFT’s J-Credit account (and exploring automations for this purpose); 4) Pooling and J-Credit pool design.
- The core infrastructure developed via this pilot will allow other entities holding J-Credits to tokenize them and utilize them across KlimaDAO’s infrastructure (importantly, they will be able to list these credits for sale via Carbonmark).
Ancillary Opportunities - Utilize an SPV for creating a bankruptcy protected custodial entity for J-Credits. This aligns with the current structure for 2-way bridging that C3 is pursuing.
- Hosting J-Credits on a 3rd party platform, such as Carbonmark, for retirement there.
Capital requirements
- We request 35,000 USDC to fund the onboarding around 1,000 J-Credits from the absorption/carbon removal class.
- These credits will be sold via CM to Mori’s existing corporate clients.
- J-Credit sales via CM will include a 4% fee (in KLIMA) that will be automatically sent to the KlimaDAO DAO wallet.
NOTE: this KIP does not grant permission for the KlimaDAO treasury to bond or provide liquidity for J-Credits. Such actions would require a subsequent KIP.