CAC - Long Term Plans

Over the medium term, we plan for the Carbon Balance Service to utilise pre-verified carbon credit-producing projects, that have already been processed by the existing entities in the industry. As mentioned previously, we do feel that this industry is currently overly layered and somewhat opaque, with many of the key players not publicly publishing their verification methodology. For our long-term goals, we intend to be involved in three of the key stages in carbon credits - their Creation, Distribution and Retirement.

CARBON CREDIT CREATION

Generating carbon credits is a multifaceted process that involves a project positively impacting the environment, such as planting trees, generating renewable energy, or utilizing direct carbon capture. The project must undergo a rigorous evaluation process to determine the amount of emissions it will offset, and subsequently, the quantity of credits it can generate. Meeting a variety of criteria is necessary to obtain approval, and typically, the project must already be in existence to provide tangible evidence for the calculation process. However, in certain cases, a project may undergo the process before its inception, provided that there is a clear means of verifying the CO2 that will be captured, sequestered, or avoided. Whilst we will initially be purchasing and retiring carbon credits from existing organisations, we will be working towards formal accreditation to also become producers of carbon credits. We aim to eventually allow carbon offsetting projects to onboard with us, such that we handle the review and ultimately the creation of the credits, allowing for the potential to fractionalise them further for users who don't need to offset more than 1 tonne of CO2.

CARBON CREDIT DISTRIBUTION

Once created, carbon credits will most commonly be sold to those who want to buy them through brokers. Brokers provide value by finding credits that meet the buyers demands but in doing so charge additional fees. We intend to solve this by creating a Carbon Marketplace, similar in concept to a decentralised exchange, only that the assets being traded will be tokens that represent a given carbon credit(s). Using blockchain, we will be able to track back to the source of each credit, giving users a direct link to all of the project's information, allowing them to assess if they are a good fit. Having Carbon Credits on the blockchain in this way will open up a free market allowing users to determine the value and trade as needed to meet their emission level needs.

CARBON CREDIT RETIREMENT

The end goal of any carbon credit is to retire it. In doing so, the user essentially ‘spends’ the credit, using it to offset their emissions. This is mainly done through the large, centralised organisations at the moment and retiring a carbon credit essentially involves marking it as so in a centralised database. This isn't necessarily a bad thing, but it lacks the transparency we feel that this industry needs to further enhance the value of carbon credits. Our aim is to allow users to create their own Web3 profile for use within a Carbon Credit Exchange. We will then harness the concept of how crypto assets can be sent to a ‘burn wallet’ – in doing so, we will be able to trace each credit from its creation to its retirement, knowing the sender wallet was the user who has offset their emissions. By implementing this feature, users will be able to showcase their carbon offsetting activities on their profiles as they wish. We consider this to be an essential aspect because carbon offsetting has an accountancylike nature and doesn’t naturally lend itself to being something that people can showcase to others. We believe that features like this, combined with our certifications mentioned above will allow everyone to easily offset their carbon emissions and communicate the positive impact they have had.