Why sell carbon credits to Klima?

Sell tokenized carbon credits to Klima with instant, programmatic settlement, deep liquidity and aggregated demand, real-time pricing, and transparent on-chain traceability.

Selling carbon credits to the Klima Protocol has a number of benefits when compared to traditional routes to market — these benefits often relate directly to the nature of the underlying blockchain infrastructure that the protocol operates on.

Transaction settlement

Via the use of blockchain-based smart contracts, sellers have secure and programmatic transaction settlement assurance and eliminate counterparty risk. Rather than dealing with lengthy contracting cycles and often prolonged bank transfer times, users can sell their carbon to the protocol in seconds.

Liquidity & Supply

Klima Protocol leverages a unique Automated Asset Manager (AAM) model that routes available liquidity directly to buyers and sellers. Thus far, this has resulted in millions of carbon credits being made available across hundreds of carbon projects. As these credits are facilitated on a public blockchain network, users are provided with real-time insights into market dynamics, project availability, and pricing. Therefore, sellers have immediate data related to the price they can secure for their credits.

Demand Aggregation & Automation

A number of third party demand-centers are connected with Klima Protocol and provide demand-aggregation opportunities. These parties, including Carbonmark.com, have built automations via APIs to provide other marketplaces, carbon compensation SaaS companies, and others exposure to Klima’s carbon credit inventory.

Smart contracts are used across the blockchain industry to securely automate market processes. Klima Protocol’s usage of smart contracts enables novel use cases for carbon on the demand side and also provides a basis for automating trade settlement for sellers.

Responsiveness

The immediacy of transactions provides real-time pricing for users based on supply/demand for different classes of carbon and individual projects.

Transparency and Traceability

Public blockchains provide publicly verifiable ledgers of transactions. As infrastructure for the carbon market, the Klima Protocol inherits these advantages and provides a clear chain of custody — from carbon credit issuance on an underlying registry, to its purchase by the protocol, to the ultimate consumption of a credit’s environmental benefit.

Support for Novel Projects

Those governing the protocol can move to support novel carbon projects as a bootstrapping mechanism for their operations and for the expansion of their project activities. Issuing credits directly onto the blockchain, to serve as a quasi-registry for the credits, via mechanisms like Carbonmark’s Direct Issuance product, provide a foundation for entirely new classes of carbon.