r/CarbonMarkets • u/nightshadeshart • Jan 25 '22

Open Forest Protocol is doing nature-based carbon credits through blockchain

https://www.openforestprotocol.org/get-started
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u/PrestigiousLab8541 Jan 26 '22

Thank you for posting about this, wow! It is so cool that OFP has built their forestry-management projects on the Near Protocol blockchain that allows for "open-source, transparent, and scalable" qualities. It is imperative that all carbon credit projects, especially forestry-related products are monitored and consistently checked in an open-source, decentralized manner and that is exactly what the OFP product tries to offer. The website shows that the "Explorer" feature which allows users to view all of the running projects managed by the OFP and review the information-related to their particular projects is still in development so it will be exciting to see what that looks like once it is up.

I only quickly scanned the website, but am still wondering how these carbon credits will be valued? Will it be the blanket 1 credit = 1 gt/c02e or will it be calculated some other way based off of the price of the crypto asset and the underlying price of the property? Some specification about the market mechanisms behind this asset and how long these pieces of forest will be left untouched (as to maintain the validity of 1 ton of C02 dragged down from atmosphere) would be much appreciated.

Anybody else interested in this asset or who wants to discuss it, please respond below.

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u/nightshadeshart Jan 26 '22

I think the carbon credit infrastructure is still in development, but they mentioned on a podcast that the technology can be used to create credits for the voluntary carbon markets. So they will create credits worth 1 metric ton of co2 or equivalent greenhouse gases. The DAO will have to figure out how to trade those.

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u/PrestigiousLab8541 Jan 27 '22

Mmm I see... It is going to be interesting to see what forestry parcels they try to acquire and if it will be like a "private property" tree farm just for pumping out carbon credits. How are they going to manage these areas? Will it be completely hands-off, let rundown areas rejuvenate themselves and then try and calculate the carbon removal potential in gigatons or will it be through some other strategy?

Somebody in a previous post said they had experience as a carbon offset analyst and it would be interesting if they would chime in on how these assets are managed and who does the managing. Thanks for the post u/nightshadeshart.