SINRA White Paper
English
English
  • Summary
    • Catch Your Own Butterfly
    • Project Scheme
    • Regenerative NFTs
  • 1. Introduction
    • 1-1. Introduction
    • 1-2. The three distinctive features of SINRA
  • 2. Carbon credits derived from natural resources
    • 2-1. NBS(Nature Based Solution)
    • 2-2. Carbon credits
    • 2-3. Carbon credits and offsets
    • 2-4. Social Impacts
  • 3. Regenerative NFT
    • 3-1. Project scheme
    • 3-2. A Regenerative NFT with multifaceted value
  • 4. Carbon credits and their relationship to Regenerative NFTs
    • 4-1. State of Regenerative NFTs
    • 4-2. Rights that Regenerative NFT represent
    • 4-3. Flow of consolidation of carbon credits with Regenerative NFT
    • 4-4. Prevent double counting of carbon credits
    • 4-5. Why SINRA promotes the creation of carbon credits
  • 5. Specifications of SINRA's Regenerative NFT
    • 5-1. Purchase Unit
    • 5-2. Status and Art Drawing
    • 5-3. Year in which carbon credits are generated.
    • 5-4. NFT validity and expiration date
    • 5-5 Uncertainty in environmental value creation
    • 5-6. Traceability
    • 5-7. Offset
    • 5-8. Utility
    • 5-9. Secondary distribution
    • 5-10. Sustainability of Regenerative NFTs
  • 6. Architecture
    • 6-1. Architecture
    • 6-2. Information held by the SINRA system
    • 6-3. Information held by the CONTRACT
    • 6-4. metadata specification
    • 6-5. control panel
    • 6-6. Security measures for SINRA systems
  • 7. marketplace
    • 7-1. primary sale
    • 7-2. Price
    • 7-3. commission
    • 7-4. secondary sale
    • 7-5. carbon offset
  • 8. Advantages of owning Regenerative NFTs (individual and corporate)
    • 8-1. Personal Advantages
    • 8-2. Corporate Advantages
  • 9. governance
    • 9-1. Decisions on SINRA product development
    • 9-2. Community of Regenerative NFT Holders
  • 10. NFT Issuing Company
    • 10-1. Company Information
  • Appendix
    • reference document
Powered by GitBook
On this page
  1. 4. Carbon credits and their relationship to Regenerative NFTs

4-5. Why SINRA promotes the creation of carbon credits

Previous4-4. Prevent double counting of carbon creditsNext5-1. Purchase Unit

Last updated 1 year ago

When a holder of natural resources seeks to generate carbon credits, they must directly interact with national agencies or public institutions, preparing conditions for forest management and afforestation as well as organizing necessary information for applications. In the case of J-Credits related to forest absorption, it generally takes about 2-3 years from the planning phase to the generation of the credits.

Carbon Credit Generation Process

The value chain example for J-Credit generation consists of the following steps ① to ④:

① J-Credit Project Planning

② J-Credit Project Application & Certification

③ Monitoring & Certification

④ Sales

The most significant challenges in the above process lie in steps ③ and ④.

During the monitoring phase for J-Credit generation(③), meeting the standards of credibility for J-Credit often requires laser surveying. This involves deploying drones, helicopters, or airplanes to project the lasers, typically resulting in significant costs of around 3,000 to 5,000 yen per hectare.

(Ex. For example, for a 1,000-hectare forest, the cost would be approximately 30 to 50 million yen.)

Additionally, after investing time and resources over a 2 to 3-year period to finally generate J-Credits, the challenge of selling them arises. In Japan, where bilateral agreements dominate, municipalities without established sales channels often find themselves with limited means to sell J-Credits. As a result, many instances occur where they are unable to sell these credits.(④)。

Given these circumstances, the proactive creation of carbon credits, which require both time and money but may not sell, is hindered. As a result, a significant number of J-Credits derived from natural resources in Japan remain undeveloped.

At SINRA, we've devised a solution for challenges ③ & ④ by issuing unauthenticated carbon credit NFTs, selling the rights to claim future carbon credits before they are even generated. The revenue obtained from the issuance of these unauthenticated carbon credit NFTs is then utilized to conduct monitoring. This approach enables even municipalities with limited financial resources to promote the creation of carbon credits, a crucial step in advancing sustainable practices.