Increasingly, Orgs. are asked to prove they pulled carbon from the air using the process called monitoring, verification and reporting (MRV)
Unwrapped - Carbon Portfolio Dashboard
Select All Unwrapped - Carbon Portfolio Dashboard
Wrap 2+ Carbon Credits
Unwrapped - TCO2 Token Details
TCO2 Wrapping Process
TCO2 Wrapper Approval
Wrapper Success
Wrapped - Carbon Portfolio Dashboard
Wrapped - TCO2 Token Details
Retired - Carbon Portfolio Dashboard
Renewal Date
Verified Wrapped Verra Collection
MRV Ratings (AAA, AA, A, BBB, BB, B, C, D, & Unwrapped)

Exploring Verified MRV: Enhancing Transparency and Efficiency in Carbon Markets

Introduction

In the ever-evolving landscape of climate change challenges, our hackathon team brings forth Verified MRV, a solution rooted in our team's expertise in decentralized market infrastructure within the tokenized voluntary carbon market. Recognizing a prevalent issue in the carbon market—transparency and project integrity—our journey was driven by the need for on-chain availability of third-party analysis. This data is critical for carbon funds to make informed decisions and adjust portfolios for risk, but it is currently lacking on-chain, presenting integration challenges with projects like Aetlas's risk-adjusted carbon tonne, concurrently developed by two of our team members.

Inspiration

Our initiative began with a clear understanding of the challenges in transparency and project integrity within the carbon market. Leveraging our team's knowledge, we acknowledged the pivotal role of third-party analysis in automated risk-adjustment for carbon DeFi. This led to the development of VerifiedMRV, a project focused on enriching on-chain tokenized carbon with live ratings data and biomass changes estimated by AI models fueled with satellite data.

What Does Verified MRV Do

Verified MRV is designed to generate dynamic project token wrappers for on-chain tokenized carbon, enriching project metadata with 3rd party carbon ratings and live performance data. Beyond this, the project plays a crucial role in standardizing the data structure of tokenized carbon, simplifying the aggregation of various on-chain carbon sources for more efficient DeFi carbon market infrastructure.

The Building Blocks

For our initial prototype, we integrated Toucan Protocol's TCO2 (tokenized carbon), Chainlink's Oracle, and BeZero Carbon Ratings. Toucan Protocol serves as a key tokenization bridge for off-chain carbon issued by Verra, a prominent voluntary carbon standard. BeZero, a significant collaborator, provides a 'credit-style' rating that incorporates satellite data analysis, methodology review, local policy scrutiny, and scientific review. The development process involved creating a wrapping smart contract, generating unique ERC-20 tokens to wrap each set of Toucan TCO2's. The Chainlink oracle played a pivotal role in pulling BeZero's project-specific carbon ratings on-chain as a new attribute associated with the relevant carbon credit project.

Overcoming Challenges

Our journey was not without its challenges. While BeZero makes its rating data publicly available, accessing their API necessitates a substantial $24k annual subscription. We engaged with the BeZero team, exploring a potential partnership for main-net deployment. In the interim, we had to adapt by creating mock data to represent BeZero ratings, hosting it on our own API for a seamless testing and development process.

Blocked by Front End Challenges

As Hackathons go, due to unforeseen life circumstances for one of the team members, our front end was not able to get developed by the deadline. All team members worked hard to try and become unblocked but it was to much of a challenge. As such, our video includes only UI screens from the Figma Prototype.

Accomplishments

Through dedicated collaboration, Verified MRV stands as a practical solution to bridge the transparency gap in the carbon market. Our accomplishment lies in creating a reliable system that integrates Toucan Protocol, Chainlink's Oracle, and BeZero Carbon Ratings, providing a comprehensive on-chain solution for live project ratings data and biomass changes. This achievement contributes to the carbon market's integrity and establishes a foundation for a more transparent and trustworthy decentralized carbon market.

Lessons Learned

Our journey has been a profound learning experience, unraveling the complexities of decentralized carbon markets, oracle integrations, and the challenges associated with third-party data access. This experience has not only refined our technical skills but has also deepened our commitment to addressing critical issues within the carbon market ecosystem.

What's Next for Verified MRV

Looking ahead, our roadmap for Verified MRV includes enhancing its capabilities, providing support for additional carbon protocols, incorporating more diverse data sources, and contributing to the continued growth of the decentralized carbon market. We are enthusiastic about continuing our collaboration with Chainlink and the broader community, working together to drive positive change in the carbon market space.