KrypC’s CarbonCore is a solution for all parties in the Voluntary Carbon Marketplace that simplifies the entire process, making the carbon trading market safe, reliable, efficient, convenient, open, and inclusive.
Global Carbon Markets in 2022
global emissions reduction
Ravi Jagannathan
President & CEO, KrypC
Industry
dMRV Reporting
Overview
KrypC’s CarbonCore is a solution for all parties in the Voluntary Carbon Market (VCM). It helps create and develop digital Measurement Reporting Verification (dMRV) workflows, audit trails, and project registration with traditional registries to enable carbon project listing and documentation on Hedera through the point of sale in the VCM.
Challenge
There is a current lack of transparency in the voluntary carbon market today. The requirements for qualifying carbon credits and certifying projects are done by the process of delegated authority. This is then processed in a way where data is difficult to verify outside of PDFs and web2 portals. Leaving little veracity of how that data transformed into information and who was involved in the Measurement Reporting and Verification (MRV) throughput. This lack of transparency makes the market difficult to understand and opaque.
Solution
CarbonCore helps create and develop MRVs, architecture, and libraries to deal with the carbon project listing process and documentation on Hedera. The process is to tokenize, and mint tonnes of carbon offsets (tC02e) created within a project lifetime.
In 2021, the voluntary carbon market quadrupled from its previous year, reaching approximately $2b in market value. (source) The demand for trustworthy and transparent carbon credits is growing as institutions work on sustainability initiatives and comply with evolving environmental regulations. The changes put in place to get this thriving voluntary carbon market are ongoing, and it is just the beginning.
In the past, there has been negative press around sustainability due to: the carbon marketplace not having the proper mandates from the government, corporations greenwashing, and there not being a universal ability to monitor these credits and projects. More companies today are becoming net zero by some point in the next decade or so, yet political differences and inconsistencies across different regions of the world make it difficult to have a transparent view of regulations.
When compared to other markets entered by countries, there is a lack of governance within the voluntary carbon market. In today’s version, private parties determine the requirements for project certification and what constitutes a carbon credit. There is a huge lack of transparency and trust that regulates participants and inhibits a fully free market. Along with a distrust of these credits and lack of regulation over these private entities, you leave bigger opportunities for fraud.
There has been a need for a 360-degree view of the voluntary carbon market to better instill transparency and validity of the assets within them. KrypC’s CarbonCore is a solution for all parties in the Voluntary Carbon Marketplace. It not only helps create and develop MRVs, architectures, and libraries to deal with the carbon project listing process and documentation on Hedera; through Guardian. But also able to tokenize, and mint tonnes of carbon offsets (tC02e) created within a project lifetime; through the Hedera Token Service.
CarbonCore helps simplify the entire process and looks to make the carbon trading market more inclusive, efficient, safe, and reliable. Through the power of Hedera and the Guardian, it looks to be a ledger for creating the trust chain of verified carbon units and emission reduction assets. Making these assets verifiable will increase the credibility and value of these credits. Giving an opportunity for more funding for impactful sustainability projects.
Through the Guardian, they can leverage and add to the open-source methodologies/policies to ensure proper schemas for dMRV. Auditors within the ecosystem are then able to access this data, and certify it, allowing for it to be tokenized and then placed within a peer-to-peer marketplace. All powered on top of Hedera.
The urgency of trustworthy credits and projects is continuing to grow, and CarbonCore, Hedera, and the Guardian help us bring that forward. Hedera is eco-friendly, has predictable fees, can scale quickly, and has an entire ESG ecosystem built around it. The depth of knowledge in the community attracts more projects of the same to contribute, helping scale one another at a productive rate.
CarbonCore on Hedera helps entities purchasing carbon offsets feel safer around their acquisitions. Helping improve the comfort around credits through regulation and clear auditability is a key initiative toward a more trustworthy market. With no problems regarding the token origin or certification, credits will be of high value during sales for investors and carbon offset suppliers, leading to a stronger impact on the fight against climate change.
Hedera is not affiliated with, and does not sponsor or endorse this project.
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