Summary

Deploy capital to fund carbon project development and secure the forward delivery of EEIMP pool compatible credits.

Motivation

Background Pursuant to KlimaDAO’s mission of rapidly scaling up the deployment of capital toward high-impact sustainability projects, in September, 2022 we proposed the utilization of a set amount of treasury funds toward financing the development of new carbon projects. This effort strongly aligns with the coalition-building necessary to accelerate the on-chain carbon ecosystem’s development and showcase the collaborative potential of the ReFi space.

EEIMP Pool Bootstrapping C3’s Energy Efficiency and Impact carbon pool design is centered on carbon projects with strong social co-benefits, including small-scale community led energy efficiency projects. The pool is thus designed to impact various Sustainable Development Goals (SDGs), including: -SDG 3: Good Health and Well-Being -SDG 6: Clean Water and Sanitation -SDG 7: Affordable and Clean Energy -SDG 11: Sustainable Cities and Communities -SDG 13: Climate Action

The types of projects which would qualify for the EEIMP pool include clean cookstoves, clean drinking water, and small biogas plants. Currently, the digital carbon landscape lacks strong representation from these types of projects. Supporting the EEIMP pool’s development is therefore a direct means at increasing the overall diversity of carbon project types on-chain.

Project Support: Improved Cookstoves for Rohingya Refugees in Bangladesh

Project Context The Improved Cookstoves project in Bangladesh is a small yet significant step to address the fact that globally, more than three billion people use inefficient stoves or polluting open flames to cook their meals, which harms their health as well as the climate and the environment, according to the Clean Cooking Alliance a non-profit focused on the issue. In Bangladesh, Rohingya Refugees live in cramped conditions with limited access to income generating activity or to sources of fuel to boil water and cook food.

The energy-efficient, improved smokeless cookstoves known locally as ‘Chula’ are a massive improvement on the current reliance on traditional stoves or open wood fires, which damage respiratory health exacerbated by the confined space of the dwellings made of tarpaulin. The improved smokeless cookstoves burn wood more efficiently, causing less environmental impact from the extensive wood harvesting for cooking fuel in the forest area surrounding the camps.

StarCB’s full RFC post is available here: https://forum.klimadao.finance/d/131-rfc-eeimp-compatible-project-opportunity-starcb-x-klimadao

Importantly, this opportunity is a direct project financing initiative and thus KlimaDAO can market its participation as such.

Credit Issuance & Costs Units are priced at $8/tonne

2023: 15,625 2024: 15,000 2025: 625

Total offsets: 31,250 tonnes Total cost: $250,000 (250,000 USDC)

Risk Mitigation SCB mitigates the risk of non-delivery by conducting in depth due diligence on the feasibility and technical parameters of the project. SCB conducts a detailed review of the project developer with whom it is partnering in the project implementation. For this particular project it is VNV, a seasoned project developer with many years of experience. VNV’s teams have already completed more than 26 high impact projects which are registered with The Gold Standard, the credits of which have been retired by reputable organizations known for their strict DD standards on the quality of the credits they use, namely PwC, McKinsey or Laudes Foundation etc.

Additionally, KlimaDAO has ensured the following parameters are included in a prepared Verified Emissions Reduction Purchase Agreement (VERPA): -Should a delivery failure occur from this project, StarCB will provide ‘like’ credits from a similar project in terms of vintage, region, certification standard and technology type/methodology. -Should bridging not be possible at the time of credit delivery, KlimaDAO holds the right to sell the credits at no charge by StarCB to another entity. Any gain from such an action will be sent to the DAO wallet. These potential future transactions will be facilitated via StarCB’s registry account.

Polling Period

The polling process begins now and will end at 17:00 UTC on January 27, 2023. Assuming the forum proposal is approved, it will advance to Snapshot.

Vote

1. Enter into forward delivery agreement with StarCB for 31,250 tonnes delivered from 2023-2025 at $8/tonne.
2. Do not enter into a forward delivery agreement with StarCB.
3. Abstain