Carbon Credit Tokens
The Carbon Credit Tokens (CCR) are ERC20 tokens backed by 'active' carbon credits and carbon credits contracts.
Description
Carbon Credit Tokens or CCR tokens are ERC20 tokens backed by 'active' carbon credit. Active carbon credits means the carbon credits are still valid and have not been retired or struck-off (deleted) from the official carbon registries. Retired carbon credit means the carbon credit doesn't exists any longer and hence has zero value since it has been deleted from the official carbon registries.
Features
A digital token created on a public blockchain : CCR Tokens are created on a public blockchain, that means it doesn’t exists in a centralized server prone to hacking, human error or downtime. All datas on a blockchain are also immutable, that means no wallet, token, past transactions data can be deleted.
Transparent: All information on CCR token issuance, transactions, token holders (wallet) and retirement (burnt) are publicly available and available 24/7.
Backed by real & active carbon credits: CCR Tokens are backed by real & active carbon credits that exist under the International Carbon Registry, Verified Carbon Standard (Verra), Gold Standard Registries , and also under the UNFCCC Clean Development Mechanism Registry.
Affordable & Offset Matching: Each CCR Token is equivalent to 1kg CO2e, this is smaller than standard minimum carbon credit size of 1 tonne CO2e. This makes it affordable for everybody to invest in, users can also offset their exact carbon footprint.
No maturity: Carbon Credits do not have a maturity date until it is retired (use for carbon offset) from the registry by its owners.
Investment vs. offset choices: User has a choice to purchase different types of CCR Tokens for carbon offset purpose or investment purpose. This is because unlike other seller/brokers we don’t immediately retire the underlying carbon credit on a sale. The users can hold Kyotocarbon purely for investment purposes.
Carbon Credit Token Types
There are 3 types of CCR tokens:
Carbon Credit Spot Tokens ("CCRS"): Tokens backed by 'active' carbon credits. 'Active' means the carbon credit have not been retired and can therefore be traded. CCRS can be retired for carbon offset purpose at any time.
Carbon Credit Forward Tokens ("CCRF"): Tokens backed by forward agreement for future delivery of 'Active' carbon credits before or on specific time in the future. CCRF can be traded and can only be retired for carbon offset purpose at or after the future delivery date.
Carbon Credit Offset Tokens ("CCRO"): Tokens that represent 'Right to Redeem' CarbonDEX NFT Offset Certificate. CCRO tokens are meant for Users who wants to immediately offset their carbon footprint and NOT for trading. The CarbonDEX NFT Offset Certificate is backed by retirement certificate of active carbon credits purchased & retired for this purpose.
Carbon Credit Token Series
Since each carbon credit project is unique the CCR will be issued in different series to reflect the different type of projects in different countries. Different projects within a country can also be grouped under a country series and some series can also be issued under its continent, where projects from different countries of the continent can be grouped together. The combinations are endless but the main purpose here is to give choices to the investors.
For example:
The Token symbol for Carbon Credit Spot Token based on Verra Forestry projects globally series 1 will be: CCRS-VR-G-S1
The token symbol for Carbon Credit Offset Token based on UN CDM projects in Asia series 2 will be: CCRO-CDM-A-S2
Fig. 25: Various types of carbon credits
The underlying carbon credits backing CCR Tokens are those issued under the standards below:
CarbonDEX NFT Offset Certificate
Users who redeem their CCR Tokens will be issued a carbon offset certificate in the form of an NFT on the Polygon network. Consistent with industry practices, the CarbonDEX NFT Offset Certificate will be issued back-to-back with a retirement certificate issued by the Standard bodies to CarbonDEX or iP2P Global on our customer's behalf.
CCR Tokens sent to the redemption wallet will be burnt, hence reducing the supply of the particular CCR series, once ALL the tokens have been redeemed, that particular series will be delisted from CarbonDEX. A minimum of 100 kg CO2e is required for an NFT certificate to be issued.
Fig. 26: CarbonDEX NFT Offset Certificate
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