ABSTRACT

 

CARBON2O2 (carbon to oxygen) LLC is a marketplace where carbon credits holders, companies or individuals that need to remove their carbon footprint, and investors, converge in an ecosystem where each of the participants obtains the best from climate change mitigation projects focused on removing greenhouse gases (GHG) or reducing GHG emissions.

Making use of the blockchain and the versatility of smart contracts, we have created a carbon credit trading system that allows us to guarantee: The transparency of carbon credit transactions, the creation of new carbon credits, the quantification of GHG removals and reductions (including avoidance, displacement and destruction) of GHG emissions generated by the Climate Change Master Plan (CCMP) 2015-2050, the abolition of double counting of carbon credits , the permanence of carbon credits over time and verification by a competent authority of the existence of the carbon credit.

CARBON2O2 invests in and invites new technologies that revolutionize the deployment, capture, abatement and sequestration of greenhouse gasses and Co2. The company concentrates its efforts to assist the sectors of agriculture, energy, transportation, and EV to reduce the world's CO2 footprint.

 

1. DISCLAIMERS

 

The attached whitepaper is meant to describe the currently anticipated plans of CARBON2O2 and its affiliates (together, “CARBON2O2”) for developing a new blockchain token mechanism (“Token”) that will be used on the network sponsored by CARBON2O2 (“Network”). Nothing in this document should be treated or read as a guarantee or promise of how CARBON2O2’s business, the Network, or the Tokens  will  develop  or  of  the  utility  or  value  of  the  Network  or  the  Tokens.  This  whitepaper outlines CARBON2O2’s current plans, which could change at its discretion, and the success of which will  depend  on  many  factors  outside  CARBON2O2’s  control,  including  market-based  factors  and factors within the ecological and cryptocurrency industries, among others. Any statements about future events are based solely on CARBON2O2’s analysis of the issues described in this document.

This document does not constitute an offer or sale of the Tokens or any other mechanism for purchasing  the  Tokens  (such  as,  without  limitation,  a  fund  holding  the  Tokens  or  a  simple agreement for future tokens related to the Tokens). Any offer or sale of the Tokens or any related instrument will occur only based on definitive offering documents for the Tokens or the applicable instrument. 

Purchasing the Tokens or any related instrument is subject to many potential risks. Some of these risks will be described in the offering documents. Purchasers of Tokens and related instruments could lose all or some of the value of the funds used for their purchases.

 

2. WHAT ARE CARBON CREDITS?

 

1 Carbon Credit = 1 Ton of C2o2

A carbon credit is a permit that allows the owner to emit a certain amount of carbon dioxide or other greenhouse gases. One credit permits the emission of one ton of carbon dioxide or the equivalent in other greenhouse gases. The ultimate goal of carbon credits is to reduce the emission of greenhouse gases into the atmosphere. As noted, a carbon credit represents the right to emit greenhouse gases equivalent to one ton of carbon dioxide. According to the Environmental Defense Fund, that is the equivalent of a 2,400-mile drive in terms of carbon dioxide emissions

 

2.1 Understanding a Carbon Credit

 

The carbon credit is half of a so-called "cap-and-trade" program. Companies that pollute are awarded credits that allow them to continue to pollute up to a certain limit. That limit is reduced periodically. Meanwhile, the company may sell any unneeded credits to another company that needs them.

Private companies are thus doubly incentivized to reduce greenhouse emissions. First, they must spend money on extra credits if their emissions exceed the cap. Second, they can make money by reducing their emissions and selling their excess allowances.

Companies or nations are allotted a certain number of credits and may trade them to help balance total worldwide emissions. "Since carbon dioxide is the principal greenhouse gas," the United Nations notes, "people speak simply of trading in carbon."

The intention is to reduce the number of credits over time, thus incentivizing companies to find innovative ways to reduce greenhouse gas emissions.

When you hear the words “carbon offset”, think about the term “compensation”. Offsets represent the reduction, avoidance, destruction or sequestration of the equivalent of a ton of carbon in one place to “offset” an emission taking place somewhere else. Carbon offsets are designed for situations where emissions are impossible to reduce because you can use the funds to reduce emissions in other areas. 

When you hear the words “carbon credit”, think about the term “allowance”. Carbon credits represent the maximum amount of CO2 an entity is allowed to emit. This cap on CO2 emissions slowly decreases over time, forcing entities to emit less and less CO2 in order to stay within the boundaries of the cap. Companies with high levels of emissions can still continue to operate, but only at an increased cost.

 

2.2 Carbon Credits Today

 

Cap-and-trade programs remain controversial in the U.S. However, 11 states have adopted such market-based approaches to the reduction of greenhouse gases, according to the Center for Climate and Energy Solutions. Of these, 10 are Northeast states that banded together to jointly attack the problem through a program known as the Regional Greenhouse Gas Initiative (RGGI).

California's Cap-and-Trade Program

The state of California initiated its own cap-and-trade program in 2013. The rules apply to the state's large electric power plants, industrial plants, and fuel distributors.

The state claims that its program is the fourth largest in the world after those of the European Union, South Korea, and the Chinese province of Guangdong.

 

The U.S. Clean Air Act

 

The United States has been regulating airborne emissions since the passage of the U.S. Clean Air Act of 1990, which is credited as the world's first cap-and-trade program (although it called the caps "allowances").

The program is credited by the Environmental Defense Fund for substantially reducing emissions of sulfur dioxide from coal-fired power plants, the cause of the notorious "acid rain" of the 1980s.

 

How Large Is the Carbon Credit Market?

 

Estimates of the size of the carbon credit market vary wildly, due to the different regulations in each market and other geographical distinctions. The voluntary carbon market, consisting largely of companies that buy carbon offsets for CSR (Corporate Social Responsibility) reasons, had an estimated value of $1 billion in 2021, according to some figures. The market for compliance credits, related to regulatory carbon caps, is substantially larger, with estimates ranging as high as $272 billion for the year 2020.

 

Difficulties in the Carbon Credit Market

 

The carbon-credit market is still essentially operating as a cottage industry. There is little consistency in pricing, and these prices often do not reflect the costs of delivery. Some brokers are buying cheap carbon credits and selling them at hugely marked-up prices, while there are others who are putting pressure on project developers to drive down prices – what they then sell them on to businesses for is anything but cheap.

These intermediaries have such control over the carbon market partly because of the old-fashioned, low-tech way it is administered – quite a dichotomy in such a forward-thinking sector. Current carbon-market intermediaries, therefore, have no incentive to change the system, because it makes them a lot of money, and it is highly centralized and very obscure, allowing for errors and manipulation.

But, blockchain technology – storing information as immutable blocks on a decentralized public ledger, secured by cryptography and negating the need for middlemen – is one way of solving the current problems in the carbon market.

 

3. ESTRATEGY

 

As part of our philosophy, our name is a permanent reminder of the need to change the ratio we have in our environment of Carbon to Oxygen (C to O2 = C2O2).

Our work is a constant effort to the quantification of GHG emissions and removals and reductions (including avoidance, displacement and destruction) of GHG emissions generated by the Climate Change Master Plan (CCMP) 2015-2050.

 

3.1 Ease of Access and Use

 

The CARBON2O2 platform seeks to solve each of these challenges through a single platform consisting of two symbiotic token systems: The C2O2 Token (C2O2) and the C2O2 NFTs (C2O2NFT). Our mission is to digitize and mobilize the world’s carbon assets. 

There is a third token, the C2O2F, which will serve to involve investors in our project and to measure the amount of dividends they will obtain in the future, thanks to the amount of C2O2F they have in their wallets.

The main actors that we group in our marketplace are: carbon credits holders, customers and investors.

This principle lets project developers (Carbon credit holders) mint their carbon offsets as NFTs on the blockchain and sell them directly to individuals and businesses (customers). So, the NFT sale (in exchange for C2O2) goes straight to the project developer, cutting out the middleman completely. It is a straightforward, accessible and efficient way for both buyers and sellers of credits to take meaningful action.

We create access to the utility of retiring Carbon Offset through the C2O2 NFTs. The Offsets represented by the C2O2 NFTs are verified by recognized international protocols such as: ISO, CDM, ETS, VCR, and verified from accredited third-party organizations. 

Project examples include, but are not limited to, greenhouse gas capture and destruction, and to assist the oil and gas sectors to reduce the industry's CO2 footprint. Additionally, one of our projects will be committed to the plugging of abandoned oil and gas wells that are releasing greenhouse gasses Worldwide. 

In a Carbon market that has traditionally been operated as a brokerage model in many tonnes per transaction, C2O2 offers access to CO2E (Carbon Dioxide Emission) retirement previously unavailable directly to consumers in increments that are fractionalized. 

The role of some carbon offset brokers is basically to introduce the buyer and seller to the market.  Brokers usually do not take ownership of the underlying carbon offset credit; rather, carbon offset brokers help to facilitate the transaction in exchange for a commission.  Brokers primarily operate in the compliance carbon markets, but some brokers also operate in the voluntary carbon market.  The reason for this is because the compliance carbon markets often involve more frequent and higher volume trades at higher prices, as opposed to the voluntary carbon market.

The C2O2 NFT will be utilized to offset greenhouse gas pollution in a much more accurate metric that can still scale to larger projects while allowing smaller projects, businesses and even individuals to participate in meaningful environmental impact.

 

What am I supporting?

 

Many new services are emerging that offer a promise of climate change through various types of projects in conservation. These initiatives may have value in helping the health of the environment, but can be difficult to quantify in terms of impact and often times are at risk of fraud and the credits can be double counted. For example, an offset project developer could sell credits to an international buyer in order that they can claim that their emissions have been reduced or they are carbon neutral. However, those credits may already be counted as reductions in the host country’s commitment meaning either the product isn’t carbon neutral or the country’s emissions are, in effect, higher than reported. Obviously, counting the same emission reductions twice distorts our view of progress being made towards a safe climate. 

Buying an offset of Carbon from a future benefit of planting a forest has many variables that makes it difficult to forecast the amount of carbon that will be offset during the variable life cycle of that forest. Forests can be destroyed by fire, flooding and other natural disasters and it is for these reasons C2O2 is tied only to projects where C02E has already been explicitly captured, destroyed, and offset to a specific and certified protocol of measurement. 

Several scenarios show annual emissions of methane gas from AOG (Abandoned Oil and Gas) wells in the US that are approximately 1/5th higher than the amount that the US EPA's estimates for 2018. In Canada, the study findings suggest that methane emissions from AOG wells in 2018 were nearly three times higher than estimated by Environment and Climate Change Canada.

The process of plugging abandoned oil and gas (AOG) wells is a guarantee in perpetuity that we are implementing a definitive solution to a problem that will be around for decades (or hundreds of years). That is why C2O2 Token is permanently valid.  

The key features of ease of access to Carbon Offsets, and confidence in their quality, impact and history are key deliverables of the C2O2 Token project.

 

Transparency + Auditability

 

The fact that C2O2 can partner with emission reduction projects to support its growth and operations enables the ledger to provide a complete audit trail from inception to the physical details of the mitigation projects on the blockchain. This immutable audit trail on the blockchain can inform NFT owners of: the type of project that created their offset, the location of the project, the certification protocol followed to create this offset, and the external certifier that was used. 

This level of transparency allows users to have the flexibility to choose the desired amount of carbon they wish to offset for a given service, to seal up ocean wells, to seal up onshore wells, and related activities or products, at scale. This transparency and flexibility regarding certified carbon offsets is unique and we believe it  will benefit the environment while providing a transparent provenance for  the Carbon Offsets being used to accomplish this. 

When compared against existing offerings that ask you to tick a box or add additional payment for a Carbon Offset, you have to wonder where the audit trail and form of direct connection to impact can be verified. If one can not connect the dots on a confusing amount of financial mechanics, the reason may be that the tangible impact you seek can not be traced or verified and in fact may not be real in any form.

 

4. UTILITY OF THE TOKEN

 

The C2O2 Token works as an exchange currency for transactions within our marketplace. Our marketplace smart contract acts as an ideal ledger to store, distribute, track and maintain carbon credits in NFT certificates. It is in this unique function of the greenhouse gas sequestration perpetual contract, where we see the usefulness of C2O2 NFTs and ensure a positive impact on the environment. 

To provide real visibility into carbon offsetting, rather than simply canceling the carbon credit, we track both live supply and total historical C2O2 Token supply on executed projects. Regardless of whether the C2O2 NFT corresponds to an active project or the closure of an abandoned well, its history and provenance can be traced back to the exact green energy project that produced the offsets, from inception to the present time.

One of the primary utilities of the C2O2 Token is to be the exclusive token of the carbon credit marketplace we have on our website. Both individuals and organizations, who need or want to reduce their carbon footprint, will be able to use C2O2 Token to buy certified carbon credits (NFTs) from Carbon2o2 marketplace.

The process will essentially be similar to buying from an online store. Users will buy Carbon2o2 certified carbon credits directly from us through the marketplace with the C2O2 Token. This will also be where investors can buy other companies' carbon credits after being approved by environmental regulators. In return for being able to list on our exchange, they will pay a listing fee and a percent out of each sale (see chapter 6.1) which will go towards funding our environmental projects. It will only be possible to buy carbon credits on our marketplace using the C2O2 Token.

People will be able to use our platform to invest in the carbon credit market, intending to sell in the future when the value of carbon credits has risen as is projected. Of course, like the first option, the exclusive currency for the exchange will be C2O2 Token.

When purchasing the carbon credits on our marketplace, the transaction will work as follows:

• A percentage will be sent to the staking pool, rewarding our investors. (see chapter 6.1)
• A percentage will be used to fund Carbon2o2 projects when C2O2 carbon credits are sold.
• The vast majority will be sent to the seller, the certified carbon credit (NFTs) will be sent to the buyer.

 

5. THE NFTs

 

An NFT in its simplest translation is a Non-Fungible Token. This definition refers to a record that is immutable in the large database of a Blockchain. Its main characteristics are:

1) It is unique in the content of the information it stores. There is no other NFT with this same information. For example: a concert ticket for a particular location. There is no other ticket like this one, either because of the concert information, the locations and the event time.

2) It cannot be divided. If the NFT refers to a quantity within its content, this quantity cannot be ungrouped. In the example above, an NFT can be a ticket that is made up of 2 entries with the information of the two respective locations. This NFT cannot be disaggregated into 2 NFTs, if it has been created as a single element, it will be that way forever.

3) Property. Each NFT has a single owner, or what is the same, it is associated with a person's electronic wallet. Only that owner can transfer it to another wallet or sell it for a particular amount of tokens. At the time of making the sale for the agreed price, the NFT changes ownership in the blockchain and will be associated only with the new owner.

How does it work in the Carbon marketplace?

The C2O2 NFTs are the certificates of the Carbon Credits issued from a project within the Carbon Marketplace.

Holders of Carbon Credits freely and openly sell their carbon credits at the price they consider, on the project they have registered in the Marketplace. This CC availability is visible to anyone who wants to buy them. Up to this point there is no NFT associated with carbon credits. When the buyer has decided on a project and the amount of carbon credits they want to acquire, they make the payment with the C2O2 Tokens and it is at that moment that the NFT is generated, with the amount of carbon credits that they have selected. Said NFT has unique information associated with the project such as: carbon credit verification certificate, amount that has been acquired, photographs of the project, location, company that has issued them, duration or validity of the same. The NFT is automatically associated with the buyer's wallet and he can see it in his digital wallet.

The amount of carbon credits purchased is removed from the project inventory. In this way, double counting of them is avoided.

 

6. THE TOKEN

 

(C2O2 Token)

 

Launched on the Polygon Blockchain, each C2O2 Token represents the true and firm participation in a carbon offset market of each of its holders. C2O2 Token combines standard, tested code which has been reviewed by the broader Ethereum community, in addition to our own NFTs Smart Contract architecture enabling the verification and tracking of the Carbon workflow which has undergone private reviews, security audits from global token exchanges. 

Utility, Defined: Upon minting C2O2 NFTs, the NFT Contract internally creates a tracked OFFSET which aggregates in the marketplace recording the real world carbon credit. Every C2O2 NFT minted is directly linked to one of these projects and has an explicit legal and certified paper trail associating the offsets generated with the fractionalized tonnage within the C2O2 dApp. In all senses of the word, it is a legitimate carbon credit.

The C2O2 Token was developed to interface with any Ethereum wallet or application that supports ERC-20 tokens for basic token functionality.

Running on Public network Polygon makes this token simple to onboard, and basic to send and store.

Symbol: C2O2

Standard: ERC-20 

Inital Circulating Supply on Day 1: 5,000,000 C2O2

Network: Polygon (Before Matic)

Contract: 0x385b0947d71ecd5ccb91d7c57c455dcafd831c8d (Details on Polygonscan)

 

6.1. MINTING

 

We mint tokens to the Living Supply of C2O2, with every 1 Carbon Credits added to the marketplace equating to 1.10 C2O2 Token created. That exchange rate will be fixed throughout the life of the CARBON2O2 marketplace. 

There is secondary tracking done by Smart Contract, where NFTs created in the marketplace are programmed with information on the attributes of emission reduction projects that produced the Offsets. The minted C2O2 Token are available to be dispersed via exchange sales or strategic reserve volumes. 

CARBON2O2 is planning to create C2O2 Tokens by demand. During each commercial operation within the marketplace, CARBON2O2 will allocate a percentage of its token sale commission and the sale of carbon credit NFTs to its operation. From this commission, destined for the operation, a part will be destined for the liquidity of the token and another for profits of the investors. See the table below:

 

TOKEN ALLOCATION FROM MARKETPLACE TRANSACTION	PERCENTAGE
Founders profit	1.50%
Liquidity pool	1.50%
Company Operation	7.00%
Credit Holder Sale	90.00%
Totals	100.00%

 

6.2. LAUNCH SUPPLY + RELEASE

 

There is a small Private sale prior to launch in which C2O2 Token supporters will be given the opportunity to participate in the first transactions and balances of a project with real climate impact.

The funds raised with these Founder Tokens (C2O2F) will contribute to the addition of more carbon offsets to the project offering and technology development.

The main launch supply of C2O2F Token created during our first major minting event in Q2 of 2021 is: 5M C2O2F Tokens. This initial minting will be 5M founded coins (C2O2F) destined to:

• Carbon Offset Purchases (60%)
• Technology Advancement (10%)
• Marketing C2O2 (30%)

As a long-term currency stability strategy, the minting of coins for public sale will be segmented according to the demand for Carbon  Credits on the marketplace (which is an advantage over other projects whose useful life is 5 years). In this way, a demand for C2O2 Token is generated and favors the increase in the value of the token.

As C2O2 NFTs are retired over time, and the balance of supply reduces, the CARBON2O2 team works in the real world securing more Carbon Offsets, developing more green project relationships, used to mint C2O2 Token. Keeping a balance of C2O2 Token in the circulating available supply is the goal, with flexibility in what size of minting and Offsets sourcing need to be carried out to meet the rate of C2O2 NFTs retirements.

This is where climate impact is directly tied to the user decisions of those holding C2O2 Token, where clicking to retire triggers more certified offsets to be sourced and the reach of the project impact to grow.

 

7. APPLICATIONS FOR C2O2 TOKEN

 

The development Roadmap will continue with the launch of the custom frontend wallet for C2O2 Token, the application will be available for use on Android and IOs. It will have all the basic functionalities of a wallet to receive, send and store the C2O2 Tokens. The user will operate in the C2O2 Token Sale and Purchase marketplace.

Purchases will be possible on Ethereum, Matic or another authorized cryptocurrency through the custom wallet and also with non-blockchain payment systems such as PayPal.

Tokens will be distributed within 24 hours upon payment confirmation but can take up to 72 hours depending on volume.

The dApp frontend will allow users to manually transfer C2O2 NFT, that will allow flexibility regarding the timing of holding and retiring chosen volumes of Carbon Offsets.

The dApp will allow to search the current information related to certified Carbon Credit in the C2O2 NFT, thanks to the smart contract that information will be:

• Carbon credit issuance serial number.
• Name of the associated project.
• Location (GPS) of the project.
• Project start date.
• Company that executes the project.
• 2 Photos of the execution of the project.
• Carbon Credit expiration date (if applicable) 

The app which allows users to fund their wallet with C2O2 Token and signal an intent to purchase a quantity of C2O2 NFTs (Carbon Credits). As well as visualization of data stored on the blockchain to help explore AOG (Abandoned Oil and Gas) shut-in wells and other associated projects, living supply of the token, also as help to inform users of energy usage of blockchain and real-world related activities to enable users to make more intelligent carbon retirement decisions that align with corporate or personal goals.

Once C2O2 NFT has been purchased, users can see the connection to the actual CO2E project the C2O2 NFT corresponds to. This information includes the type of activity that created the offset being retired, the location of the project, the type of certification used to verify the impact, and other information relating to the project and certification process.

Credit-holder companies

The companies that have the ownership of the carbon credits, will have the possibility of linking the information of their inventory directly on our platform, for this we can offer an API available to register their inventory. On the other hand, this record can be tied manually in a form available in your corporate account both on our website and in the mobile application.

This inventory can be consulted in real time, to know which carbon credits have been acquired to date and which are pending delivery.

This integration will allow the information on the Blockchain of the new available carbon credits to be kept updated.

Currently, carbon removal prices are set by Credit Holders. Soon, the price will be dynamically set by the market using the C2O2 Token.

The C2O2 Tokens of each tonne you pay for goes directly to supporting our suppliers, while we collect a transaction fee to keep the marketplace running.?? 

Immediately an NFT is purchased in the marketplace, the purchase executes the smart contract and sends directly to the credit holder the C2O2 Tokens that correspond to the sale, less the marketplace commission, likewise the NFT is sent to the buyer with the information of the project he is supporting.

Credit holders can exchange back the C2O2 Tokens at any time for cash to CARBON2O2 LLC.

 

Commitment to Sustainability

With a focus on reducing the impact of our activities, CARBON2O2 calculates our usage within the Polygon Blockchain to make our data footprint for this project Carbon Neutral using the C2O2 Token.

Extending to neutralize any adverse climate effects of our activity on the Public Polygon Blockchain, we monitor the hashrate of the network and the relative activity footprint of C2O2 Token on the Polygon network. The hashrate translates to a footprint to be offset, against data on the most current and efficient mining method.

 

8. GLOSSARY

 

AOG: Short for “Abandoned Oil and Gas” wells.

Allowance: a government-issued, tradable, and bankable electronic certificate that is stored on a centralized online platform, which represents the holder’s entitlement to emit one tonne (in carbon dioxide-equivalents) of greenhouse gases (GHGs) to the earth’s atmosphere.

Auditor: a qualified professional who is periodically engaged to review streams of historical CRC issues, to retroactively assess/confirm the previously estimated GHG reduction value of the CRCs as well as the CRC stream-average GHG reduction estimation error.

Baseline Generator: a person or entity qualified to evaluate operating data and other evidence provided by a potential CRC supplier, who has the demonstrated scientific, analytical, and modelling expertise to convert the supplied evidence into a CRC quantity estimate, with associated estimation error ranges 

Blockchain: cryptographic database technology that allows for data (including financial transactions) to be stored in a secure, transparent, and decentralized manner.

Buyer: the name given to a person or entity that uses C2O2 tokens to purchase CRCs in the CARBON2O2 marketplace.

CO2E Carbon dioxide-equivalents: a metric used to describe the radiative forcing potential of a range of different gaseous compounds which all trap heat, but at different rates and for different lengths of time, when they form and reside in the earth’s atmosphere.

Carbon removal: the action of drawing carbon dioxide and other carbon-based greenhouse gases from the atmosphere, and storing them in the earth’s industrial, terrestrial, subsurface and/or aquatic reservoirs.

Compliance market: a market in which some legal entities (e.g. companies) are assigned, by governments, caps on the amount of greenhouse gases they can emit, and who may be obliged to acquire and/or retire allowances or offset credits to cover any greenhouse gas emissions in excess of the amount assigned to them by the regulator.   Compliance markets typically allow entities who have not been assigned GHG emissions limits to voluntarily offer verified and validated offset credits. The regulated entities may then acquire and retire such credits to achieve compliance with capped limits to their GHG emissions. These markets are often described as “cap and trade” regimes.

Cryptocurrency: a cryptographically-secured digital asset in which encryption techniques are used to regulate the generation of units of exchange and verify the transfer of funds or assets, operating independently of a central bank.

Data manager: an individual or entity that supports a supplier to collect data to make decisions to remove carbon dioxide and create CRCs, but does not take assignment of CRCs. In the context of our first methodology, data managers would often be farming consultants.  

Ethereum: a second-generation blockchain featuring smart contracts and the Ethereum Virtual Machine in order to run decentralized applications (dapps). The project aims to be the backbone of web 3.0 and a decentralized internet.

GHGs: short for “Greenhouse Gases”, compounds such as carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), and other gases that absorb heat energy being radiated by the Earth, contributing to the “greenhouse effect”. 

Methodology: a method applied to quantify and assign estimation error to carbon removal projects. A CARBON2O2 Methodology includes three components: 1) A process to remove carbon dioxide. 2) A method to list the process on the CARBON2O2 marketplace. 3) A procedure to verify, audit, and assign a quality rating to CRC estimates.

C2O2 token vs. CARBON2O2: the C2O2 token is the cryptocurrency that may be traded in secondary cryptocurrency markets. CARBON2O2 by itself refers to the company, CARBON2O2 LLC.

Offset credit: an electronic certificate created and issued by a voluntary or compliance market administrator purporting to represent one tonne of CO2-equivalent heat trapping gas that has been removed from, or an equivalent reduction in GHG trapping gases to the atmosphere.

Supplier: the name given to a person or entity whose actions remove greenhouse gases from the atmosphere, store those elements in a terrestrial, subsurface, or aquatic reserve, and offer CRCs for sale in the CARBON2O2 marketplace.

tCO2e: an amount of GHGs expressed as “CO2 equivalent” whose greenhouse warming potential equals that of one tonne of CO2 gas. For example, one tonne of methane (CH4) is 25 tCO2e and one tonne of nitrous oxide (N2O) is 298 tCO2e.

Tonne: one metric tonne (“metric ton” in the US), the standard unit of measurement for carbon removal. 1 metric tonne = 1000 kilograms or 2204.62 pounds.

Verifier: a qualified professional in a position of fiduciary responsibility who can attest to the accuracy of evidence provided, annually, by CRC suppliers, to substantiate their claims that a quantified amount of greenhouse gases has been removed from the atmosphere and stored in an industrial, terrestrial, subsurface or aquatic reservoir.

Voluntary market: a market in which individuals or organizations can trade electronic certificates representing both carbon removals and GHG discharge reductions, in which buyers and sellers participate at their own free will.

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2032.           BE/edit Mastercoin whitepaper: https://github.com/mastercoin-MSC/spec
2033.           Decentralized autonomous corporations, Bitcoin Magazine: http://bitcoinmagazine.com/7050/bootstrapping-a-decentralized-autonomous-corporation-part-i/
2034.           Simplified payment verification: https://en.bitcoin.it/wiki/Scalability#Simplifiedpaymentverification
2035.           GHOST: http://www.cs.huji.ac.il/~avivz/pubs/13/btc_scalability_full.pdf
2036.         Ethereum RLP: https://github.com/ethereum/wiki/wiki/%5BEnglish%5D-RLP
2037.           Ethereum Merkle Patricia trees: https://github.com/ethereum/wiki/wiki/%5BEnglish%5D-Patricia-Tree

Y.            Peter Todd on Merkle sum trees: http://sourceforge.net/p/bitcoin/mailman/message/31709140