KIP 48: J-Credit pilot activity support & J-Credit integration

Cujo

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.

endwar

beautiful

optima

Firstly, the initiative to integrate J-Credits into KlimaDAO's framework is a commendable step towards globalizing our carbon offsetting efforts. The Japanese market holds significant potential, and the J-Credit system is a well-regulated mechanism for carbon credits.

The proposal aligns seamlessly with KlimaDAO's mission to accelerate climate finance on a global scale. The integration of J-Credits could serve as a blueprint for future collaborations with other national or regional carbon credit systems.

The capital requirement of 35,000 USDC for onboarding around 1,000 J-Credits appears reasonable. The 4% fee in KLIMA that goes directly to the KlimaDAO DAO wallet is a smart move for revenue generation.

Overall, the proposal is strong, well-thought-out, and aligns with KlimaDAO's objectives.

Dionysus

optima

This is the way.

The opportunity to tokenize J-Credits and supporting them across the Klima ecosystem strongly aligns with our innovative approach of catalyzing the next generation of climate finance.

MarcusAurelius

This is an exciting opportunity to expand the Digital Carbon Market and KlimaDAO's ecosystem, demonstrating the unique advantages of open, permission-minimized infrastructure for climate finance.

Voted "yes"

rittaaka

Excellent use of funds, and opportunity to show the way forward for other registries and carbon standards, and the broader VCM in general.

bbillzy

A great idea!

d3s4i

Exciting to see mandatory markets coming a step closer to the DCM

KTOR

Fully in support of this great integration