Summary
Introduce a new "Japanese credits" pool into the web3 space via C3 in collaboration with the MORI team, an organization focused on ReFi in Japan.
Motivation
To promote C3's vision of providing the transparent, neutral, and public infrastructure necessary to accelerate climate finance on a global scale, we will also begin handling credits to be certified in Japan to make it a more diverse and valuable platform.
It will also provide Japanese carbon market with a global inflow of funds and interest by increasing the liquidity of standardized digital carbon credits generated in Japan by C3.
About Mori NFT
MORI seeks to build a decentralized ecosystem for realworld linked NFTs and carbon emission offsetting. This platform helps to reduce CO2 emissions, protect forests in Japan. Through the tokenization of forest maintenance projects, reforestation projects, and CO2 capturing, MORI-NFT enables a transparent and globally accessible market for sustainable investments. Connecting real-world linked NFTs to the digital world, new business models and communication platforms between companies with a strong desire to build a sustainable society and consumers can be created.
This allows them to start or support new projects via the MORI-NFT Platform and keeps the value within the MORI-NFT ecosystem.
About J-Credits
https://japancredit.go.jp/english/
The J-Credit System is a national system that certifies the amount of greenhouse gases such as CO2 emissions reduced by the introduction of energy-saving and renewable energy facilities and absorbed by forest management, and issues "credits" for the certified amount.
The J-Credit System is a government program that certifies the amount of greenhouse gases such as CO2 emissions reduced by installing energy-saving and renewable energy equipment or absorbed by forest management, and issues "credits" for the certified amount.
The process of certification and issuance of J-Credits involves three steps: (1) registering emission reduction/absorption activities as a "project", (2) monitoring actual activities, and (3) applying for certification based on the monitoring results, (2) Monitoring of actual activities, and (3) Application for credit certification based on the monitoring results. (3) Apply for credit certification based on the results of the monitoring. A credit is not certified or issued simply by registering a project.
On the other hand, J-Credit does not appear to be major VCM organizations such as ICROA or CORSIA certified. This is one of the issues that the Japanese government has basically designed J-Credit itself to be primarily used in only Japan. It seems that the J-Credit Office has previously applied to the CORSIA framework, but for some reason, permission has not yet been granted. Therefore, the J-Credit Office also sends out disclaimers that "the J-Credit may not be used with impunity in foreign countries”.
However, Japanese companies utilizing J-Credit are aware that certifications such as ICROA, etc. are only to ensure the credibility of voluntary credits, and that J-Credit is established on trust and legal grounds that the Japanese government has endorsed it, and I believe it will contribute to providing a variety of options in the C3 market.
We also believe that having J-Credit evaluated by markets outside of the Japanese market will provide good insight into the future direction of J-Credit.
Technical Feasibility and Pilot Structure
We expect to proceed with the pilot project in the following flow;
1) Buy secondary J-credits in MORI account.
2) Issue tokens backed by J-credits at C3 in exchange for a pledge to lock J-credits in MORI account.
3) When the token is retired, C3 link that information to MORI accordingly. MORI will then manually Retirement the J-credits MORI have locked accordingly.
*Initially, as a test, MORI itself will purchase J-Credits and convert them into tokens. If this system works, we believe we can expand the volume of transactions by acting as an agent for C3, serving as a contact point for Japanese companies wishing to Tokenization of J-Credit, managing the J-Credits locked up in our account, and handling the delivery of payment for the tokens sold on their behalf.
Proposal
Work with C3, MORI, and the partner network to develop specifications for a "Japanese Credit" pool to enable launch of a tokenization framework for J-Credits to be established from a Japanese methodology.
As previously stated, there is a concern that the Japanese government has focused so much on J-Credit's distribution and trading only in Japan that it has become a Galapagos credit.
We believe that if we can induce an opportunity for J-Credits to be traded internationally by utilizing C3 technology, it will highlight the international evaluation and assessment of J-Credits and the points that need to be improved.
At first, there will be some controversy about the value of J-Credit and its unique framework, but we believe that by having J-Credit evaluated by a variety of international players, it will eventually become one of the mature credits and have a positive impact on us, the Japanese government, in the long run.