We’re excited to announce that ALLCOT IO, the digital arm of established climate leader and project developer ALLCOT, is onboarding ALLCOT’s 500 million metric tonne portfolio of carbon credits to the Hedera Guardian ecosystem.
Opening the Books on Climate Finance
Digital Measurement, Verification & Reporting (dMRV)
Through this landmark relationship with ALLCOT, we are creating a new generation of climate assets by enabling the auditability of digitized and open-source methodologies via the Guardian. As a result, the Guardian enables contextual and granular, digitally attested, data by actors fulfilling roles within these methodologies for projects in the ALLCOT portfolio.
By digitizing the traditional methods of measuring, reporting, and verification (dMRV), the Guardian enables completely transparent, auditable, and fully discoverable information surrounding these ALLCOT carbon credits. This simplifies and streamlines the verification as we transition to a more digitally native validation process by independent third parties by order of magnitude.
Following the Inter-Work Alliance’s (IWA) dMRV framework, we are greatly improving ecological data transparency, in turn, moving us a step towards enabling a more trusted Voluntary Carbon Market (VCM). This, however, is only one part of this landmark work with ALLCOT.
Tracking and Redirecting Financial Flows
Through dMRV, our aim is to enable financial auditability beginning with the ALLCOT portfolio and Guardian native actors fulfilling roles within Methodologies. We, as an industry leveraging best available technologies like the Guardian, have the opportunity to build trust in stakeholders, ensuring that each of the roles associated with a project, from consultants all the way to registries, is fully accounted for financially.
This functionality allows for new possibilities in the market in which accounts on Hedera enable climate market actors to both receive (and give) value while also sourcing attestations from the same accounts (and DID keys/VCs) on Hedera as a public network.
This innovation in financial transparency allows project developers to demonstrably show the “financial equity” of a project and the financial flows to the stakeholders involved. We, together, envision a future of carbon markets that can simply show a credit bought, and without a financial audit, the percentage of funds that flow to a community, what they’re used for, and funds flowing to all stakeholders involved. This ability to open the books on climate finance is a transformative opportunity for the market. To provide context to the finances, following the flow of tokenized assets, often tools like stablecoins, both carbon forwards, debt mechanisms, and credits, where methodologies are enabled on the public ledger, there is a clear opportunity to use the public ledger to shine a light into the financial relationships across stakeholders and set an example for all project developers and paves a way forward to new measurements of financial equity in support of the Just Transition.
Regenerative Finance (ReFi): Benefitting the Global South
To enable a “Just Transition” so that we can achieve a low/no-carbon future, we must restructure the financial relationships that have historically controlled and extracted from our most vulnerable areas particularly those in the Global South.
Through the ReFi ecosystem on Hedera, we are aiming to enable a more efficient and ethical allocation of capital to local and indigenous communities, while still holding all participants accountable and reducing barriers to entry to climate and sustainable financial markets for businesses of every size and scale.
Together with ALLCOT, the aim here is to redefine carbon credits as climate assets, directly linking their valuation to measurable impacts in sustainable development goal (SDG) co-benefits and financial equity. By promoting unprecedented transparency and accountability ensuring that climate funds reach projects effectively and dynamically, including local communities.
Realizing Our Thesis: Bringing the Balance of the Planet to the Public-Ledger
Earlier this year, we outlined our five-part investment thesis, of which the Hedera Guardian is at the heart, to enable our overarching objective to bring the balance sheet of the planet to the public ledger. This covered:
Part I - Making Climate Finance Auditable
Part II - Digitizing & Open Sourcing Methodologies
Part III - Scaling Validation & Verification
Part IV - Discovering A Global Carbon Price
Part V - Making ESG Reporting Credible
Through this single announcement, we are tying together parts I-V by integrating both existing and new partners across the Hedera Guardian ecosystem with ALLCOT.