FAQs
As the Planetary Carbon Standard (PCS) gains recognition and public concerns regarding carbon methodologies are increasing, we aim provide our audience with prompt and useful information, we have compiled a list of frequently asked questions (FAQs) that offer key insights and answers to common queries.
1. Why does Planetary Carbon Standard (PCS) use blockchain technology?
Presently the Carbon Market is not transparent, centralised and susceptible to fraud which ultimately leads to lack of motivation for participants.
For this reason, blockchain technology has been suggested by many researchers as means to increase the efficiency, accessibility, and integrity of carbon markets (some references shared below).
The core motivation for PCS to use Blockchain are the ideas of decentralization, immutability and transparency. It is a ledger sharing among the participating entities. Because of these advantages, Blockchain has been employed by PCS to improve the transparency, trust and reduce complexity and fear of green washing.
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Miller, Douglas, et al. Blockchain: Opportunities for Private Enterprises in Emerging Markets. No. 134063. The World Bank, 2019.
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Stoll, Christian, Lena Klaaßen, and Ulrich Gallersdörfer. "The carbon footprint of bitcoin." Joule 3.7 (2019): 1647-1661.
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Patel, Dhiren, et al. "Carbon credits on blockchain." 2020 International Conference on Innovative Trends in Information Technology (ICITIIT). IEEE, 2020.
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Sipthorpe, Adam, et al. "Blockchain solutions for carbon markets are nearing maturity." One Earth 5.7 (2022): 779-791.
2. Which organisation issued the carbon credits for Tokenize Amazon Forest (TMZN) project?
The Sri Lanka Climate Fund (SLCF) has issued Carbon credits under the Sri Lanka Carbon Crediting Scheme (SLCCS) using Planetary Carbon Standard (PCS). It is a government owned company established under the companies’ Act No.7 of 2007 of Sri Lanka. Functioning under Ministry of Mahaweli Development & Environment, it provides a series of environmental services for both public and private sector. Up to 2016, company was known as Sri Lanka Carbon Fund and as operation widened the name was changed to Sri Lanka Climate Fund (SLCF).
3. Why did TMZN chose Planetary Carbon Standard (PCS) despite the availability of other standards in the carbon market?
PCS was chosen for the following reasons:
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It is the most accessible Carbon standard for all carbon project owners (small to large-scale).
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It is affordable and easy to understand and navigate. It is designed in a way that it can be used across the world and does not have regional limitations.
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Allows the project developers to propose research based (new and proven) methodologies.
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As part of UNSDG - Sustainable Development Goal 17, which reads “Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development”, recognizes multi-stakeholder partnerships as important vehicles for mobilizing and sharing knowledge, expertise, technologies and financial resources to support the achievement of the sustainable development goals in all countries, particularly developing countries. Goal 17 further seek to encourage and promote effective public, public-private and civil society partnerships, building on the experience and resourcing strategies of partnerships.
4. Why did the project consider partnering with an organization that uses a blockchain platform?
When partnering with an organization, it is essential to have transparency, accuracy and a credible tracking system. PCS uses blockchain technology to maintain an error-free carbon registry and avoid double counting. Preventing double counting is one of the best qualities a carbon standard must have. A full audit trail can be shown from project credit issuance to the retirements with all ownership in between.
5. How was the deforestation rate for the project area calculated?
The historic data and prediction modelling was used to calculate the deforestation rate of the project are. The following steps were taken:
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Historic data (10 years) of the project site since 2013 was downloaded using USGS Earth Explorer and Copernicus Open Access Hub.
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The sensor data was calibrated, and corrections were applied to remove atmospherics effects and georeferencing.
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Forest and non-Forest Areas were identified, and vegetation indices were calculated.
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Images from different time periods were compared to identify changes in forest cover using time-series analysis.
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Finally, area of deforested region in each period was measured and rate of deforestation was calculated.
6. How can avoided deforestation lead to the generation of 1,720,672 tCO2?
The Project site is a primary forest with a high forest density which has not been subjected to illegal logging or deforestation. The selection of the project site was done after thorough research to find a land plot which has not been affected by deforestation. The forest has a 99.4% forest cover, equal forest cover with a high density of large, matured trees.
The Amount of Carbon credits generated for the completed monitoring period of 2 years is 1,720,672 tCO2e, as per estimated carbon stock in 8,603,336 tCO2e. We have only considered above-ground Biomass and Below-ground Biomass only.
7. Which organisation or institution monitors the project area?
Tokenize Amazon project monitors the project site with their security personnel employed and ground truth data collected.
PCS is also monitoring the project site using satellite technology and remote sensing mechanisms.
8. Was there a conflict of interest with SLCF monitoring the project site?
There was no conflict of Interest with SLCF monitoring the project site.
9. What methods were used to monitor the project area?
1) Ground truth data 2) Satellite imagery 3) Artificial Intelligence 4) Local community, 5) CCTV cameras
10. Is SLCF an independent validation and verification body (VVB)?
Yes, SLCF is an SOE operating under the Ministry of Environment of Sri Lanka. It is a 100% non-biased, independent Verification and Validation Body.
11. Is SLCF accredited to carry out validation and verification for REDD+ projects?
Yes, SLCF is a duly recognised institute established under the Sri Lanka Carbon Crediting Scheme and mandated with the CDM Framework of UNFCCC.
12. How could SLCF issue 1,720,672 tCO2 of carbon credits to a project area of 1001.400 ha, over two years?
SLCF issued carbon credit after assessing the Carbon Management Assessment of the project and completing of validation and verification process. The carbon credits are Ex-post as the monitoring period of 2 years has been completed prior to issuing carbon credits. The assessment was done based on the ground truth data collected from the sample plots.
13. Was a public consultation carried out during the project's validation and verification?
Yes, a 30-day period public consultative session was carried out before releasing the reports / Public consultation. This occurred before the validation of the project.
14. Were public comments received, and were corrective measures taken in response?
No public comments were received, However, SLCF also had CARs which were actioned accordingly and mentioned in the validation reports.
15. Was a risk assessment conducted for the project area?
Yes, the documents related to the risk assessment are available on the PCS Carbon registry.
16. Was a leakage assessment conducted for the project area, and how is it being addressed?
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Yes, the project site was scrutinised to verify that the site had not been subjected to any kind of deforestation before. The project site is a primary forest. All the adjoining lands are also well protected with similar projects hence perimeter of the land is also protected from leakages.
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The security guards are employed from the local community hence they have no emissions related to their transportation. The landowner also uses electric transportation to reach the project site avoiding emissions.
17. How do you address risks that might reduce the permanence of the project's impact?
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The project is well monitored by following a 24/7 monitoring plan. The monitoring plan consists of a physical security plan with perimeter protection by security personnel and CCTV etc.
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PCS itself is also monitoring the project using satellite imagery and remote sensing mechanisms. The monitoring plan consists of an early detection of risks and alarming the project owner and a backup plan is also in place to avoid common risks such as wildfire.
18. Why does the Carbon Management assessment not show detailed calculations in the reports uploaded on the SLCF website?
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The CMA document indicates the methodologies and equations used for calculations. Information on the selection of methodologies and equations is also available on the website. PCS produced the results based on the ground truth data collected from the sample plots and the results were extrapolated over the entire land according to the standard practices.
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PCS uses information fed into the bespoke Carbon Engine, (ground truth data/sample plot information) to assess the carbon stock. Based on the information provided, the most appropriate methodology and equation are selected. The decision-making tree evaluates all available data to determine the best approach and provides the result.
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The report detailing the Tokenize Amazon Rainforest project is available on the PCS Carbon register under "Carbon Sequestration Analysis."