5. Decentralised Offsetting Process
There are three causes that will receive the funds from every Climate Fee payment:
- Trees planted for carbon footprint offsetting
- Renewable energy project investments in developing countries
- Financing e-waste collection and recycling programmes
Offsetting Impact Holistically
We strive to decentralise the distribution of funds as much as possible, while keeping several quality checks on the platform. Therefore, the selection of renewable energy projects and e-waste collection & recycling charities will be based on Snapshot-powered community vote: an off-chain gasless multi-governance client with easy-to-verify results. The results of the community vote will be transparently visible on a real-time dashboard that shows both the vote distribution, and the fund distribution with specific projects that the funds are allocated to.
We will use partners in both developing and developed markets to plant trees. The benefit of choosing one trusted partner rather than decentralising the tree planting projects is the ability to make sure of the quality of their work and negotiate competitive pricing.
Also, the quality of carbon offsets has to be ensured, which has been an issue for a long time. A 2016 European Union study found a shocking statistic: 85% of offset projects they looked at would have gone ahead even without the purchase of offsets. As a result, the money people put into these projects had no influence on those projects being carried out.
In an article by an environmental journalist Lisa Song, she found out that one programme that sold offsets to preserve trees between 2013 and 2017 cut down half of them afterwards.
Therefore, Brokoli will use trusted third-party certifications for carbon offsets to ensure that funded tree planting partners contribute with additionality: carbon offsets that would not have been possible without the funding. Although there are several third-party certifications for carbon offsets, the Gold Standard, Verra’s Verified Carbon Standard Program, Climate Action Reserve, and Plan Vivo remain the most acitve and reputable in the project verification process, and these are the ones that Brokoli will use.
Having chosen a trustworthy partner, we have a target price of $0.5 per tree planted, which is 2 times cheaper than the usual fee for similar service. Because we will be planting bulk amounts of trees, we will be able to arrive at these lower prices.
On the Brokoli’s Renewable Energy Project Dashboard, we will actively source, onboard and manage a global portfolio of climate projects from our trusted partners. Projects will come from trusted partners that source and package investment projects such as Energea, Open Energy Group, Solar Finance & Investment Europe, Centrica, RenewableEnergyProjects.co.uk.
Community members that stake Brokoli token will vote on which projects will be selected to offset the electrical energy used in DeFi transactions. After the projects are funded fully or partially and will begin construction and operation, we will prepare monthly reports on the total electrical energy offset and impact of those that collectively fund the operation by opting in to pledge a Climate Fee. In addition, our analysts will prepare an automatic dashboard displaying offset volume forecasting, technical administration, and compensation reporting in real time.
Brokoli Climate Dashboard -> Transparent Impact
Brokoli will be providing grants to charity sector reuse organisations working with e-waste and pledge for interest-free loans for electrical waste treatment facilities. We are in early talks with several partners that would help to most effectively provide funding for e-waste collection and recycling, namely charities registered with the Reuse Network in the UK.
Last modified 2yr ago