Universal Basic Offsets (UBO), is the widest criteria carbon token, accepting most VCS and GS methodologies for credits issued from 2014 onwards. Note that accepted CDM methodologies refer to those which can be converted to Verra or Gold Standard credits.
For the Voluntary Carbon Markets (VCM) to scale and realise the ambitious growth projections set before it, significant barriers must be overcome.
C3 will launch with 3 Core Reference Contracts to deliver on the needs of DeFi, and provide additional value to the wider VCM:
- Universal Basic Offset (UBO)
- Nature Based Offset (NBO)
- Sequestration Based Offset (SBO)
KlimaDAO’s thesis is that Web3 can be used to create public goods for the climate by pooling the capital of the community and utilising innovative incentive mechanisms. KlimaDAO is unlikely to remain the only benevolent actor in this space who acknowledges the power and role of the Voluntary Carbon Markets.
C3 therefore positions itself as a gateway for the ReFi economy. Through its API-powered bridge, it enables those who wish to participate in the on-chain carbon market to do so quickly, intuitively and permissionlessly. By having the express objective of expanding the bandwidth between these two markets, C3 intends to unlock the growth potential of both.
C3 will leverage existing knowledge, frameworks and standards and deliver curated reference contract pools that are permissionless and accessible to all players.
Without such mechanisms, competitive pressures will continue to minimise quality and limit transparency. Without such mechanisms, there is a risk that the current discursive stalemate turns into a race to the bottom in which the Voluntary Carbon Market undermines the objectives of the Paris Agreement instead of supporting the required transformational change.
Finally, C3 believes in decentralization and empowering the early participants of ReFi. The tokenomics are designed to distribute a super majority of governance power over the next few years.
The blockchain ecosystem has different players who do carbon bridging activities. For the C3 Bridge, the mechanics of the bridge works in the same way as existing bridging solutions, with the difference that C3 has access to all the existing Carbon Registries (namely ACR, CAR, Plan Vivo, Verra and Gold Standard). However, the output is a UBO and NBO (Universal Based Offset and Nature Base Offset).
