The Open Carbon Credit (OCC) Effect

The potential of flourishing carbon credit generation, offtake, and trade as part of a larger solution to the climate crisis remains pivotal. The ethos emerging from global conferences such as COP29 in Azerbaijan, dubbed ‘The Finance COP’, paints a clear picture of the need to channel immense amounts of funding to nature-based solutions. In return, natural capital is created, predicted by the World Economic Forum to be one of the most valuable investable assets going into the next decade.

The benefits of high quality, high integrity, and locally managed carbon credit creation extend far beyond the sequestration of CO2 in the ground: forests are restored and begin to thrive, generating massive ecosystem ripple effects. Biodiversity makes a comeback as flora and fauna regenerate. Water systems, climate, and weather patterns, and the quality of life for billions of people around the world who rely on forests each day are improved. Livelihoods for communities are bolstered, and income can be generated through healthy forests instead of cutting them down.

A trustworthy carbon market also represents people, governments, and corporations making the active decision to involve a thriving environment in economic markets instead of capitalizing on its destruction. Offtaking entities meet their net-zero goals with full confidence and the ability to consistently report progress through open access to carbon and project data. Local communities receive the revenue from open carbon credit sales, expanding their operations.

Open Forest Protocol was built as a vertically integrated solution to generate the world's first fully digital, investment-grade, high-impact carbon credits. Here’s how we are doing it:

• 100% Traceable: From forest to retirement, powered by blockchain, our carbon credits contain within them the ID of the project that it was created on behalf of, enabling you to review all project records and data from the date of project registration.

1. Exact location and boundaries of the project.
2. When the project started.
3. What data the project has uploaded both past and present, from required ground truth data to additional info such as drone footage or biodiversity measurements.
4. What methodology was used to calculate the carbon issuance.
5. How validators voted on the data upload, and any comments from the validator discussion on the data.

• Rigorously Verified: Independently validated for the highest standards. Multiple third party validation bodies from around the world, over 30 now to be exact, simultaneously but independently review each data set uploaded to the protocol by project developers. Assigned to different projects, there is no relationship or contact between projects and validators, removing any immediate conflict of interest. On OFP, validators receive rewards from a global verification pool based on a blockchain-innovated, token based system. There is no direct financial incentive from projects to validators but rather from participation in the ecosystem as whole.

• Community-Focused: Supporting projects that were previously excluded from carbon financing, driving economic opportunities for local communities. OFP enables direct ownership of resulting credits, expanding the definition of “project developer” and  ensuring just compensation for previously marginalized groups.

• Homogenized: All projects use the exact same tools, upload the same data, and make use of the same globalized set of equations that convert forest-growth data into credits. Understanding credit issuance from a single project on OFP enables understanding of all projects on OFP.

We are proud to offer any local community or project the chance to generate high-value carbon credits, entering a global market with transparency and integrity. Access to cutting-edge digital measurement, reporting, and verification (dMRV) tools and high-value carbon credit generation is now in the hands of any sized forest project around the world, built to empower communities.

‍Payments and any carbon credits generated are received directly by the projects themselves, cutting out unnecessary and draining third-party intermediaries. Impact on the ground gets tangibly rewarded, and incentives to invest in sustainable practices are increased. Through the OFP mobile app and ease of data uploads, this system allows projects to make their own frequent measurements, which are then reviewed by Validators. Bypassing classic lengthy systems of verification, efficiency, and scalability is inherent.

To learn more about Open Carbon Credits, contact jeremy@openforestprotocol and follow us on social media for carbon generating project updates!