Klima DAO

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.