SINRA White Paper

4-4. Prevent double counting of carbon credits

The Certified Carbon Credit NFT represents the right to request the transfer of certified carbon credits. The actual carbon credits are issued by the carbon credit certification authority, such as the Ministry of the Environment in the case of J-Credit. When offsetting, it's carried out according to the rules of the carbon credit registry, like J-Credit, ensuring that carbon credits are never double-counted.
On the other hand, there's a risk that even if one holds an Certified Carbon Credit NFT, the project implementer who possesses the natural resources might sell the associated carbon credits to a third party. As a result, the holder of the Certified Carbon Credit NFT might be unable to exercise their rights tied to the NFT.
Therefore, when dealing with the environmental value of carbon credits and the like at SINRA, we enter into an agreement with the project implementers who hold the natural resources. This contract ensures that these environmental values cannot be transferred to third parties nor can they be offset by the implementers themselves, thereby maintaining the rights of the Certified Carbon Credit NFT.