COP29 | How Technologies Solve Double Counting Problems in Carbon Markets

audience and esteem speakers I'm Jan I'm cover asset operation specialist from biosphere stre um welcome to biosphere 3 cop 29 webiner series throughout the week at C 29 whether you join us online or offline all videos will be available on your you on our YouTube channel bi 3 the webar will cover a range of important topics including bamboo farming low carbon communities in brace countries common offsetting in aviation International green energy certificates in China today's session begins with our first topic how Technologies solve double counting prods in Caron markets which is now life to start let me introduce our distinguished guest speakers federo interim CEO of City trust St sustainability and Innovation officier at act group and vice chair of ITA Andrew managing director of C Mark Chris J general manager of the biosphere 3 training platform Gordon CEO of one Earth fund us it speak speaker will deliver a keynote presentation over the next 40 minutes followed by a 10 minute Q&A St we begin with Chris followed by federo angre and Gordon let's dive in here we go so I think we start now uh today's host is Jen from my team and I think everyone is ready so can you start hello everyone um I'm chis from bios trading platform so the topic today is using large langage model to score the risk of double counting in Cent markets so the initial question is why double counting is a problem uh actually sorry actually double counting um brings in multiple challenges including misre presentational reductions it will forcefully inflate environmental benefits undermining true impacts of climate initiatives and then it may also compromise cred credibilities that investor and buyers and lo will lose confidence in C Market and the third one is that disc cour discouragement of for stakeholders that without Rob system buyers and investors has they to particip participate in carbon markets so ideally there should be an integrated data system can solve this problem but in many cases the regions or the register is lacking the Necessary Technology instructure or governance to provide data efficiently so this is where large langage model can step in and when these kind of Registries are not interconnected so because lacking the primary sources and large language model excels in analyzing D diverse often prma data sources including uh public available data it will revals Registries reports and even news articles to cross check the information and then the um to be more detailed and the it will use uh review the auditor and verifier reports this kind of independent audit records will provide insights of discrepancies and to be more accurate um large language model can use uh kind of unstructured database and then it will transer inconsistent format into standard and comparable data sets so uh based on um this kind of sources uh within large language model can detect the likelihood of double counting and so it will analyze the features um such as um project metadata byr scrutinizing project names discriptions and stakeholders for over overlaps and then uh it will reveal the documentation consistencies by identifying missing Fields um in consistent methodologies or vague baselines and the third um it will uh look into the activity claims such as highlighting a discrepancy like missing cost or unusually high expenses compared to Industry norms and then in time frames uh it will also detect if similar project claim cred credit for the same time period and the last one stakeholder history it will assess the um if the developer or regions with a a true record of disput or double counting So based on this kind of analyze and analyze and and and scorings uh there one multiple benefit for large Lang model so um we can see the benefits and we can achieve through langage large langage model by proactive risk mitigation because they can um assess the potential risk uh before the credit credits are is registers and it will bring in transparency through throughout all the process to build trust among stakeholders and then for scale of economy um large Lang model can handle large data set so making it suitable for Global markets and the last but not least it's much more efficient to reduce the cost and efforts of U manual validation allowing um human oversight to focus on high risk um projects so in summary I think we see uh double counting is a significant challenge in carbon Market uh so uh large Bank model can provide a scalable efficient and transparent solution to mitigate this risk that's all about my report thanks for your attention so let's let me forward to for back to uh J okay thanks a lot for cre insightful presentation about large language model application and avoiding double counting problems in C markets that's really an inspiring sort to utilize an advanced technology yes um so now let's move move on to move over to our next speaker federo federo are you ready to show your idea with us yeah um I just want to I think that what I want to share today is about my my experience with with cut trust the what's called climate action Data Trust And by that's a blockchainbased uh say it's project that I want to share the features about think I think they relate what what Chris has just mentioned um so one minute of History so so uh climate action Data Trust or cut trust is a in fact is a spinoff of a broader uh ecosystem called climate Warehouse of the World Bank um and this spinoff has been done in collaboration with aita which is the emission trading Association and um the government of Singapore so few years ago they they they said okay why don't we create in fact an an NGO a non for-profit organization to support clim action data and make sure that those are functional now what are this in practice so you think about the umbrella of uh a mix of voluntary carbo Market being scattered across different Registries chis was quickly mentioning that indirectly you think about um mix of the Paris agreement which will uh somehow manage the uh the transactions across countries and players through the countries of different carbo markets across the world they all have a different taxonomy a different way to calculate things they have registry very very often in place so there is a high risk of uh not having Clarity of what's going on right especially when those two those things overlap like National Registry voluntary registry and overlaps of projects ET Etc so the cut trust try to do two two simple things one was okay why don't we Define um a mean say common taxonomy or a language that we all have in common so we don't want to we don't believe that the world will go towards a centralized ecosystem because that's not good for for uh creativity is not good for even not even in line with the spirit of the Paris agreement or the spirit of the Paris agreement um but we think about okay why don't we defining at least a minimum common denominator like a Common Language across all the different carbon Market initiatives across the world and once you have def find this uh this common taxonomy this common language uh we can also think about having a data layer where we can somehow feed data from in each given cabon registry through this common language so we can see kind of what's going on in any given registry across the world and the idea was not to have data about anything which is happening anywhere because that device we become impossible to create a language or a taxonomy and and that's not even the purpose of the of the catras the idea is what we create a a taxonomy which is powerful enough to be able to give us tools that we can assess what's going on in the Cabo Market but still flexible enough to allow different initiatives to still run their course so uh the idea was okay we end up having I think 85 different fields and and and those connections with the the veras and go standards and those main Registries already already done and there is a very complex governance ecosystem because taxonomy in Cabo Market is not something that you can do only one time in your life has is a constant Evolution many things has happened ever since um and now with the article six negotiated in at cop a few new features will definitely come into play with national Registries coming up International Registries which are part of the unfc Mandate so the complexity is actually growing so once we have this uh common taxonomy and this data layer where you have data fed through uh connections right through apis or or different form of connectivities to the different registries you can create this Center place where you can look what's going on uh one important feature worth mentioning is that was done on was a blockchain base and the reason why blockchain base is because for two main reason why because you want to have an immutable Ledger and distribute and distributed Ledger because you don't really want anybody to owns the data because it's very sensitive in international agreement to have a specific player or even a specific country having this sort of a source of truth right of what's going on in the world unless maybe the UN could play that role potentially but then we felt you know there's no need to politically debate where those data are hosted why don't we just create a distributed Ledger uh so that kind of solve the problem because everybody has access to everything right as part of the technology and that's was the the bridge on how technology is solving an actual problem on on ownership not to mention of course the reliability and the auditability of the process and then the last thing I want to say is okay but what what you can you do if you have this common taxonomy so you're defining a common set of data that everybody somehow can can can engage with and you have this common place where the some of those data are are some plot into uh what can you do with it um and that's I mean the cut trust is a public good uh uh kind of initiative is meant to be okay what is this common common based data that everybody needs to have so we are not taking care of transaction pricing volumes because those are very sensitive and and has to do with um private sector initiatives or country level initiative we only wanted to have the key core data which allows to think about integrity think about the ecosystem being robust and safe but then then the last step with this logical flow from defining the taxonomy and having the connections and and and the blockchain base to have the action data repository the third step is okay but what what is possible to do with the data and cut trust is a public good as I mentioned so this third step is left to the world right to potentially use and Define but we are also kind of incubating somebody else also in a way to prove the existence of and the value of cut trust in the first place and I'll give you a couple of examples one is which is still in making at all all these are kind of in the making as I'm talking about one example that we testing is under C because Coria so the airline mechanism is there is not such a thing like a common registry Coria has approved a set of Registries and is part of their process to do a double counted check all the time there is a transaction or or in a registration s transction under ccia so cut trust could be a way to simplify extremely the process on how a registry can go through the ccia double check right but you can think also from a voluntary Integrity point of view everything which has to do with double accounting not in its details part but in its core part the cat trust is meant to be core simple essential that can be facilitated facilitated through katras katras doesn't do anything it's just a data and the service layer is up to any of you if you have ideas and want to use the data and we are more than happy to engage right because this the core public good element is the data repository and the language and the Comon exonomy as such another use case maybe I can use it to wrap it up very interesting because now it's l it's linked to cup under article six of Paris agreement of course different countries can transact M communication outcomes um and some countries want to try already to to establish a potential partnership with another country under article six but they don't have yet a registry in place in order to do the actual transaction but the registry is nothing nothing nothing that nothing different than just allowing them to understand what's going on in the country and then we say okay but why do we need the registry in the first place why don't we uh use the existing International standards for now and you use cat trust to take the snapshots that you need to have in order for your country to be able to provide uh the report the article six of the Paris agreement forces you to do towards the the UN NC so you as a country can use cat trust to kind of having a a view of what's going on in your country and therefore having accounting kind of analysis on what's happening in your country even though you are not yet having a registry which the purpose of C seeing what's going on in your country because you can use cut trust to see what's going on through International Registries any given Caron project happening in your country so you can change and adjust your carbon accounting accordingly so this is just two examples the double accounting and article six facilitation of many other potential use cases that katras can do and the overall power of katras are in fact this governance that makes sure that it's a very complex governance where countries are part of the of the of the board and same as Vero standard Registries so there's a ecosystem that agrees on this taxonomy and the second thing is that is public goods and meant to be and be blockchain based so in a way everybody can leverage right on this transparency as such that's the what cat trust is in nutshell and so back to you so thank you very much federo that's really an impressive presentation uh common tonomy in carbon market and data fat can be definitely beneficial and the reason for using rockchain is security and cred credibility to build a safe ecosystem as well and I think Andre will be very familiar with broing as well um let's listen to Andrew's demonstration about broad chain technology usage hey Andrew are you are you ready great to be here everybody and um yeah it's it's a it's an interesting ecosystem on the blockchain side of things in the carbon Market I think a few of us here have already work together on some things but uh it's certainly a growing space and obviously you know CAD trust is one of the the Pioneers there to really leverage a decentralized system as a a data warehouse for the market and there's a few reasons that that makes a lot of sense in my opinion so what I'd like to do in my time here I'm going to speak a bit about what carbon Mark does and why we chose blockchain technology and then I'll dive into some of the interesting use cases that I see emerging here that um in our opinion will help one reduce the risk of of double counting or double issuance um but we also just provide greater Fidelity into what is going on in the market itself um so if I begin just about carbon Mark so we are essentially a platform for facilitating the trade of carbon credits uh we've built infrastructure to connect to various registry systems where these credits can be brought online um when they're in our platform itself uh these credits are represented as a blockchainbased asset and there's some pretty important reasons for that uh essentially when you take an asset and you move it onto the blockchain in the way that we do you are uh essentially making it programmable now when you make an asset programmable you can start to automate different processes around its usage so that can relate to things like the purchase of a carbon credit the automated retirement of a carbon credit um the nationalization of a carbon credit into different units um than would be normally shown on the registry you know 10 kg retirements 50 kilogram retirements Etc and still have it linked it's that original asset um you can just start to send live data back to the Registries themselves based on what's going on with those credits when they're purchased retired all that pricing information the volumes uh transacted and so on can all be made available um and because we're a blockchainbased system we've you know found it quite intuitive really uh to already utilize some of the data that the the cad trust provides for example so our content management system is fed in by the API related to um projects on eco registry through the cad trust and then this data is something that we can show on our project Pages um concurrently we are looking at providing real-time insights on what's going on uh within our you know blockchain ecosystem to other data providers in the market um you know players you could imagine like Allied offsets msci Etc because when you have all these different trades and carbon retirements occurring on a distributed Ledger system like the one that we leverage uh you really have real-time Data Insights and I think for those of us that have been in the market um for quite some time you know we've grown to appreciate things like the ecosystem Marketplace reports this is a fantastic data set um but I think that we can do better in terms of the the timing when we receive the data because a lot of times these types of reports rely on retrospective survey based uh data collection and that's fine but we're not really getting the whole picture necessarily uh depending on what our sample is and uh it's retrospective right it's not real time on the other side of things when you have these assets being traded and facilitated on the blockchain system you really do have real-time uh insights uh to the second of what is going on and you can pull that data in you can um show case it in any variety of ways that you'd like to so that's really the powerful piece of the system so with that uh I thought I would i' would dive in a bit deeper on you know why blockchain itself uh on this piece so there's been a few um a few phrases that were already mentioned we we heard about immutability so the the fact that you know the transactions are actually permanent they can't be tampered with after but there's also some pieces around enhanced security in RV so know Records On blockchain are essentially encrypted um they can't be altered really enhances the integrity and the security of the data because you don't have a central party that can go in and potentially uh change the types of transactions and you know the history of of The Ledger of transactions um there's also a piece around reduced risk so because they're taking place in a distributed system uh it reduces the overall burden of a on an individual or Central authority to to actually operate the system if you consider blockchains like ethereum for example or uh even polygon these are networks that have had pretty much continuous uptime uh which you know we know there are there are risks when you have something running on a on a central server um you know wherever it is you might have downtime you might have data corruption etc etc so a distributed system uh really helps um you know mitigate some of those risks the other piece is the transparency um because transaction are recorded on a public Ledger you know not only are they they permanent and immutable there but you have visible transaction histories and I think this is actually going to be really important when we start to look at things with the Paris agreement when you have itoe transfers between countries uh and so on you really want a globally distributed system that's tamperproof that's fully transparent that anyone at any time can audit and that's the promise of a decentralized system and so I don't think it's any surprise actually that the undp released a framework an open source digital public good for a national carbon registry uh that was blockchain based and I think we can start to Envision a future where we have the national carbon Registries that are running on these types of systems they're fully interoperable together you can have the assets transferred between Registries or between exchanges that are enabled and so on and have it very interconnected um interoperable and uh running on infrastructure rails that are fully transparent uh and traceable that's going to be the key thing here um so what why else should uh someone be caring about blockchain let's say um there's two other pieces and I think I know I'm almost at time I believe so I'll go quick through these last two but one is in regards uh to dmrv and automations around credit issuance so there already are companies that are um leveraging dmrv systems that may be satellite monitoring there's others that are doing sensors related to CO2 concentrations in seawater for example um but in any case this this data is automatically streamed in to uh our blockchain based system uh and then what can happen here is that based on that data from the project you can automatically issue the carbon credits uh directly to to the system itself now again when you validate methodologies like this and you have that the dmrv system set up you of course want third parties to look at the overall system and say yes okay the the flow and the process here from taking that data in and issuing a carbon credit that makes sense it's cogent Etc but once you have that set up you can actually start to automate some of the data collection pieces here um now the other piece with with BMV is that you could you know actually pull this data in to credits that are on the blockchain that were maybe issued by one of the traditional Registries and start to add an additional layer of certification on top of them just an additional data layer live being streamed in from these dmrv sources to the credits that if you purchase those credits or retire them you have all that data available as well so it just gives you additional assurances there um so that's that's one piece and then the other is around just automating the usage uh through something like an API uh again I think there's there's a lot of new use cases out there for credits a lot of integration opportunities into other fexs where transactions are proven to be carbon neutral where users that are purchasing a product can can make them carbon neutral just by clicking a button and having the whole purchase and um retirement process automated and so on and so we you know we believe that there there there is Merit to a more Tech enabled carbon Market we think there's a lot of unlocks in terms of scaling demand for new use cases we also think that um essentially this technology provides a way to make a more secure transparent um and you know ultimately scalable Market in the future so pause there thank you um really thanks for your presentation Andrew for Real Time Data Insights and transparent systems and automatically managed coverent CICS coverent marketed build an infrastructure based on blockchain and offer API to get Market connected now um let's move on to our next speaker Gordon V share his experience of project development in terms of performant and methodology hey Gordon um are you ready to share with us good day everyone hopefully the audio connection is good uh I am it's a pleasure to be here and pleasure to meet fto Rico for the first time and Jan as well um but just want to I think maintain the momentum uh that feder Rico and Drew have built within the discussion and build on some of the things that Chris brought up as well uh so very quickly background uh Wonder fund is a nonprofit based in the United States we hope to have Global uh Global positive impact through the reduction of greenhouse gas emissions through uh waste diversion that is converted through biological means very simply stated that could be compost uh that could be insect cultivation but uh those are our two primary focuses um we've been around since 2018 um had been working um and through various Registries and and various Market uh opportunities um and so we're we excited uh for what's happened here um just in the last year um and have had a the privilege of start to work with carbon Mark uh which is very well aligned with um our our perspective the reason we selected uh waste aversion uh through biological means was precisely based on the foundations that I think have already been addressed here um every Market uh is founded on trust if there's no trust in the market um then the value of the market Mark erodes rapidly um and eventually disappears uh so trust is invalid trust and a market must also be based on data accuracy of knowing that what you're trading or buying uh is actually what uh you intended to purchase and has the value that she decided to to purchase uh and so the reason that I think this aligns with our operating model is waste diversion has a a very good alignment with that because it is a quantifiable and degrading resource um and so it is ideal for the technology technological improvements that we've seen in the current market that allow for what you we call batches of waste that can be Quantified um and then provided unique identifications um and then they are processed through the various different biological processes so whether it be traditional compost or whether it be different types of insect or other animal cultivation uh our focus is on the black soldierly which we think is the ideal animal to do that but it can be through various mechanisms at the end of that you have a quantifiable batch of waste um that is processed through a known and uh verifiable uh process that results in a verifiable output um and that is I think uh Drew would probably align a ideal mechanism for uh using a blockchain because it's a unique batch with unique output um that then becomes a unique identified uh asset that is then marketable um into the market and I think that's where the future is in terms of providing the accuracy um and the trust that buyers and sellers are looking for um especially across the International Market uh where there are opportunities um that have unfortunately been exploited in the past uh and other types of allet um trades that this would help solve um and as dreu rightly pointed out uh the data becomes Incorruptible it becomes protected and it becomes auditable uh so that if there are any questions that a someone who had any uh Su suspicion around the trades or the assets that they are purchasing is able to backtrack that and know that on this date this amount of waste was collected it was validated through a known methodology method methodology and was in processed accordingly um and at the end of it it had an output um that is both measurable and aligned with the expectations um one of the processes that we've also started taking in in terms of monitoring that aligns with this um is actually tagging batches uh using RFID and other ways of maintaining uh Integrity of the waste being diverted um and the quality of the waste uh so that when it goes to the process at the end of it um and as we develop the project and submit the um submit the project to the marketplace um everyone has clear transparency into what was actually processed where it came from where it was uh where it was actually uh converted from a waste to an asset um and has a clear methodological uh emissions standard uh that can be validated um so that if weights or quantities don't line up uh that that can be audited as well so from our perspective it's critical uh to maintain that data Integrity I think the other component of it as well um that that Drew uh may have touched on but just to uh go a little bit deeper into um is it also accelerates the uh verification and validation process that is so critical uh two offsets and The credibility there uh so the ability to uh more rapidly move through uh the verification and validation process um by using these technological means uh reduces the amount of physical auditing uh that is uh so that drives up cost especially for developers like us um whereas with other types of um previous regimes uh that was very difficult and expensive and eventually and in some cases uh the trades did not make economic sense but with the ability to use technology and the ability to create unique uh and secure identifications for the resources uh that uh I should say for the assets that are being uh developed uh by project developers regardless of where they are in the world provides a significant amount of positive cost impact especially for our partners in developing countries uh where uh there is a un unfortunate perverse incentive the further away you are from a validification verification and validation entity uh the more costly the project is to develop uh the more costly the project is to develop uh the lower uh the the required profit that makes the additionality of the um of required by the methodology to work um so what we've got in a number of cases is a cycle that drives a project uh so with that I think uh we're kind of running up on time sorry my mic went off for a second uh like I was saying with that uh hopefully that provides a little bit more clarity and uh additional reinforcement um to the points that the Fred Rico and Drew brought up in terms of the value uh of this new uh an improving Market ESP especially from a developer perspective who we were specifically oriented on avoiding the the risk of double counting by creating quantifiable um uh degradable meaning that it could not be shifted or double counted um types of assets that were converted into resources uh that were also quantifiable so inputs in quantifiable uh outputs quantifiable and now with uh the blockchain that creates a immutable and uncorruptible uh mechanism for accounting for that so that that in the end increases the trust of the market and the higher the trust in the market the greater the value of the market um across you know International boundaries so thanks very much and open for questions okay thanks for sharing Gordon um the broad chain can definitely made the quantification and developing process of carbon access creatable and trans parent um so that's our speakers are finished their Keo presentation and we should move forward to the last session and the 10 minute Q&A I will collect some questions from the audience and our colleagues and the first one is forward to Federico how will cause be effective when project proponents apply such a solution to develop their C critics okay um FICO can you answer you can share your ideas about it thanks you ah okay um so for for now talk about cat trust in this case right for cat trust now we don't have yet um a financing model if you like of what we are building everything is been done through has been done through philanthropy um the idea is a lot of philanthropies are interested in having core data as a public good as part of their mission um so for now all the activity I mentioned about taxonomy creation governance and the data repository layer and everything around that has all been done with philanthropic fundings um in the future obviously you might want to have a model where potentially some revenue or Revenue financing stream might happen and that could be by the user of data so whoever is us using data from cat trust could support cat trust existence as such but the idea that we have or I have is to have cat trust as lean as possible uh and then everything else so the use cases around cat trust to be uh different Ventures that can be public or private in nature and therefore self-funded so the idea is so not to have a fee that somehow get charged to standards and then directly to project proponents but more try to be as as lean as possible as a way to is an enabler right for the industry to Works more effectively so that's been so far the model okay thanks thanks for answer federo and this one is forward to Gordon the question is if a method designed to aide double counting is already set up how to make it effective or convincing thanks for the question uh the methodology that is currently in place um on the as accepted is the um ACM 0022 we are currently working on an updated methodology for U black soldierly cultivation um as well as using the climate action Reserve um 2013 version for compost both of those um have monitoring requirements built in um and have quality control mechanisms uh that require uh the that the uh waste inputs that go into either of those processes whether it be traditional composting um or through insect cultivation um are measured um and those measurements are calibrated um and then on the output side the outputs of that waste diversion are then Quantified as well so the methodologies have the monitoring quality control mechanisms uh built in uh so that overall quality assurance uh of the credits that are being brought to to Market are validated um and so that with that process as stated creates the opportunity uh for more rigorous auditable uh and accurate information to be recorded um and maintained um and that used to be through uh the more traditional registry process but now with the improvements um with block chain and also with large models that can validate data sets um it is the methodologies have only been reinforced by the technology so they've uh you know through no deliberate mechanism but uh only I think through sort of logic um the methodologies that were developed before the Technologies are still not only held up but have been uh reinforced by the improve by the improved techn uh technological data uh Integrity mechanisms that we've discussed here today so really thanks for answer Gordon um the next one is forward to Android how is the question is how can we motivate Botti me mechanism to connect their data to our blockchain and can share your ideas with us Andrew thank you for that question um I guess I I would probably break that up into um let's say registry data and then uh you know perhaps dmrv companies uh that are working with project developers so on the the registry side um there's been a number of Registries that have already you know connected data and provided some sort of interoperable solution to blockchain platforms like ours uh icr for example which is a registry that actually runs on the on the polygon blockchain you have Eco registry uh pure Earth uh has a connection in place um and I think we will see some movement from some of the other major Registries in the coming months but that's that's really the first key piece because the Registries are are the ultimate source of Truth you could say um they're the ones that are actually issuing the assets and tracking retirements so if you then want to have more the the the advantages that we you know we've all spoken about earlier for having assets on the blockchain for having carbon credits on the blockchain then you need to have a solution to connect that data from what's happening on the blockchain to the registry system itself now when you're going from a completely so-called Web Two based system to a web 3 one that's blockchain enabled um there are some challenges there right there's challenges because uh there's certain functionality that is enabled when these assets are on the blockchain that doesn't always exist in the web two registry systems so i' mentioned uh carbon credit fractionalization before uh essentially whether retirements can occur for sub ton units um that's something that's that's fully enabled on the blockchain of course but not already indries have that so you have to kind of then create some sort of bespoke solution to batch retirements when they occur on a fractionalized basis on the blockchain to then have that data you know secured on the the carbon registry itself so that's one side of things uh generally I would say um I think you know Registries that are emerging right now there's some interesting like novel more carbon removal focused Registries uh some of them are running on blockchain systems and uh I would say that over the next couple of years perhaps we see some of the other traditional Registries that have been around for you know many many years at this point may also transition their infrastructure to blockchain based system and uh I think there'll be a number of advantages there so then last piece of this this question the other side of it would just be like dmrv uh companies themselves uh how can we you know motivate them to connect their data to the blockchain um I mean look you know we we have a module on our platform that allows us to take API data from from third party sources uh and essentially pair it with um the the carbon credits that are on our platform um you know I think when you open that up and uh essenti especially if you can create another Revenue stream for them whereby um similar to the carbon credit rating agencies they would be paid if um people wanted that data associated with the credits that they had in their system so if I have a th tons from some project it's on a project page and uh we want to pair those credits with um let's say satellite monitoring data around the the deforestation rates in the project area uh you know maybe we as a platform pay this data provider or uh potentially the buyers of those credits themselves would pay for those credits and a royalty would also go to the dmrb provider and uh because you would have the smart contract system with these to these know so-call tokenized assets or the assets that are on the blockchain um you could make that fully automated uh in terms of the royalty payment in a simil similar manner if you have trading of credits you can actually send a royalty back to the original project developer themselves and in this way um even though you know there's a lot of margin taken by intermediaries in the market currently you can ensure that a portion of that margin actually goes to the folks that are on the ground developing these projects um which I know that's a bit of a tangent from the original question but uh I think it's related to the uh the the data piece here and is worth exploring so FKS a lot for your answer andur and that's really impressive answer so the the last question is also to Fed um the question is how to lower the cost that if we need the real time data interconnecting different Registries I'm try to understand the the question so the yes the I mean the idea is to have connectivity through through through apis and and at the moment what what we trying to do with cut trust is that the Registries the big ones as much as uh the the the more Innovative ones that that you just mentioned they're all uh part of cut trust and and they allow us to have API connectivity or other form of of Engagement with them uh which is relatively efficient it's not super efficient so we're also looking at doing things better but for now uh our core of focus now is not really on the efficiency side yet but more on the political side and the and the use cases side so the value proposition so at the moment the costs are not super material compared to the potential value that you can gain out of having transparency trust and a better use case for for carbon for action action data that comes from carbon projects so now we are focusing mostly on having the stres on board so we can easily improve uh anything having them politically involved or practically involved having connectivity as efficient as reasonably possible at this stage um and then focus on the used cases to make sure that there is actually use of the data and therefore there is a value creation that justifies the whole ecosystem in the first place so that's a little bit the philosophy that that's happening the moment so Less on on cost optimization which is not super material yet and more value creation if that makes sense so thanks for answer FICO and that's all for today

2024-12-08 11:54

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