Cannes Lions

The First On Chain Carbon Currency Market

DAO CONSULTANCY, California / KLIMADAO / 2022

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Overview

Entries

Credits

OVERVIEW

Background

NORMAL PEOPLE HAVE NO WAY TO HELP

With no end in sight to the industries that produce the most carbon emissions, something needs to be done at the grassroots level. But the direct means to fight climate change have never been available to individuals. From the time recycling became mainstream in the 1970s to the present, inconsistent application and enforcement have rendered it largely ineffective as a means to combat climate change.

But the carbon credits that companies use to offset their carbon footprints, have been largely unavailable to the average public.

Idea

EMPOWERING INDIVIDUALS TO SAVE THE WORLD THROUGH DeFi (DECENTRALIZED FINANCE)

Launched in October 2021, KlimaDAO was conceived as the world’s first carbon market initiative to neutralize greenhouse emissions. Utilizing real-world carbon credits brought on-chain, KlimaDAO empowers ANYONE to engage in the fight for Mother Earth.

Strategy

EMPOWERING USERS EVERYWHERE

Operating as a decentralized autonomous organization (DAO), KlimaDAO brings together 100,000 users from 65 countries around the world to promote, market, and trade in KLIMA. Once users acquire KLIMA, they have the option to retire their tokenized credits, permanently, ensuring that their part in helping save the planet won’t be put to any other use.

INNOVATING THE CARBON MARKET

Working together, KlimaDAO has introduced multiple innovative carbon-offsetting projects, including:

- A carbon-backed cryptocurrency to drive scarcity while increasing the overall price of carbon assets.

- Carbon-staked NFTs for multiple media formats and creative projects, including the first instances of playable character skins for online games, charities, and a fashion line.

- Klima Infinity, a B2B program for companies to neutralize their carbon footprints

- “Love Letters”, which allowed to etch personalized inscriptions onto the carbon credits they offset as inspirations to future generations.

Execution

1. ENDING INSTITUTIONALIZED SUSTAINABILITY

Carbon-offsetting environmental projects (reforestation efforts, recycling programs, etc.) are verified by third-party organizations, such as Verra or Gold Standard, with their output recorded on a centralized, verifiable global registry as carbon credits.

2. FLIPPING THE SCRIPT ON BLOCKCHAINS

KlimaDAO acquires the credits, effectively removing them from the carbon market. The credits are “tokenized” and recorded on a blockchain -such as Polygon- as part of the KLIMA treasury.

3. DEMOCRATIZING THE CARBON MARKET WITH WEB3

The carbon-based tokens can now be purchased on the Polygon network by individuals and businesses to offset their respective carbon footprints. Through continuous acquisition and selling, KlimaDAO creates a scarcity that increases prices for users while making environmental projects profitable.

4. INCENTIVIZING SUSTAINABILITY

With Klima’s efforts raising prices, acquisition costs for carbon credits become less attractive to big companies, forcing them to invest in other measures to meet their legal obligations.

Outcome

- Since launching in October 2021, KlimaDAO has facilitated the removal of over 19 million metric tons of carbon from the market, equal to planting 87,000 hectares of forest, or taking nearly 4,000,000 cars off the road for an entire year.

- Within two weeks, “Love Letters” saw users offset over 51,000 metric tons of carbon, equal to four times what Dubai has offset in observing 13 years of Earth Hour.

- KlimaDAO has helped triple the price of carbon assets, from $2.30 to $7.20*, by facilitating over $2,000,000,000 worth of transactions.

- Organic mainstream and financial media coverage from outlets like The New York Times, Yahoo Finance, CNBC, WIRED, Financial Times, CoinGecko, Forbes, Nasdaq, and The Wall Street Journal.

- KlimaDAO has been invited to speak about its web3 environmentalism by institutions like Harvard University, Massachusetts Institute of Technology, World Economic Forum, The World Bank, and the United Nations.