# R4: Energy-side Carbon

## What this route does. 

R4 pays for **measured, avoided emissions** created by energy projects that pass a strict additionality and emissionality test. It issues **ex-post**, **independently verified tons**, only after any overlapping energy certificates are retired or immobilized, and it enforces **one-claim law in code**. **No evidence → no ton → no settlement.  **

### PoV in Action

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### Capture & Sign

You connect revenue-grade metering (utility/inverter) and—if applicable—battery telemetry. As production arrives, **EDMA mints ETT (1 per 10 kWh)** to your wallet; each meter window is signed at the source and normalized to canonical evidence.
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### Verify

Independent roles attest the same evidence hash: an **auditor** plus an operational role for generation; for storage dispatch, program/aggregator + auditor confirm baseline, dispatch signal, and measured response. Anomalies (time drift, impossible balances, missing signatures) fail here. 
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### Gate

The **PoV Gate** then enforces three rules before any state change: 

* **quorum present**
* **equality of evidence** (every counted attestation references the same evidenceHash/window)
* **one-claim exclusivity** (the derived claimId hasn’t finalized anywhere on EDMA). 
* **Fail ⇒ no mint / no retire / no settle.**
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### Lock the math

For each hour we compute **eligible tons** with node/region marginal emission factors where available (else residual mixes), plus **T\&D losses and a conservative buffer**. Factor source + version are locked at issuance on-chain, with a documented re-issuance SOP for material restatements.
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### Retire energy attributes first

If RECs/GO/I-RECs were issued for those kWh, EDMA retires or immobilizes them in the registry and records the external IDs on-chain before any carbon ton is considered. The relevant ETT are then stamped & locked so they cannot be reused. **One kWh, one claim. **
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### Issue, sell, settle

A verifier signs the batch; EDMA mints tons ex-post, sells on forwards/floors or spot, and pays proceeds to your vault in stablecoins. Fees are 4% total (2% seller at claim, 2% buyer at settlement), in $EDM; **50% of every fee burns on-chain**. If you don’t hold EDM, the action fails cleanly—no auto-swaps. A $0.50/EDM denomination floor is used only to compute how many tokens are due; it is not a price peg.
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<img src="https://4141632533-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FvCX7EzuE9nwtTuIaxXGQ%2Fuploads%2FFORCFXW4iH5PmEEEpN4V%2Ffile.excalidraw.svg?alt=media&#x26;token=8a3ed377-6349-4f4b-994a-fbaee3fa7400" alt="" class="gitbook-drawing">

### Who qualifies

You’re in scope if EDMA caused the project (or a material upgrade) or you shift clean kWh into dirtier hours with provable storage dispatch. Clean-grid rooftops without storage typically don’t qualify and are routed to R1/R2 so they still earn.  &#x20;

### Where this pays

The lane is strongest in high-emission grids (coal/gas-heavy, peaky marginal EF), in mixed grids with evening peaks where batteries can prove emissionality, and in captive/private-wire situations that visibly displace fossil supply. Typical price band: $30–$60 per ton (quality-dependent).&#x20;

### Worked example

* **Plant:** 100 MW solar
* **Sun hours:** 1,500 h/year → 150,000 MWh/year
* **Method:** ex-post avoided-emissions using marginal emission factors (MEF)
* **Conservative deductions:** 3% technical × 5% uncertainty ⇒ 0.97 × 0.95 = 0.9215
* **Fees:** 4% total (2% buyer + 2% seller), paid in $EDM; 50% of every fee burns (so effective burn = 2% of gross)

#### Scenario A — No storage (additionality only)

Saleable tons = MWh × MEF × 0.9215

<table data-header-hidden><thead><tr><th></th><th></th><th width="101.00390625"></th><th width="141.50390625"></th><th></th><th></th></tr></thead><tbody><tr><td><strong>Grid band (MEF)</strong></td><td><strong>Saleable tCO₂/yr</strong></td><td><strong>Price $/t</strong></td><td><strong>Net to park / yr</strong></td><td><strong>Net / month</strong></td><td><strong>Burn / yr </strong><em><strong>(2% GMV)</strong></em></td></tr><tr><td><strong>Coal/gas-heavy (0.70)</strong></td><td>96,757.50</td><td>30</td><td>$2,844,670</td><td>$237,056</td><td>$58,055</td></tr><tr><td></td><td></td><td>40</td><td><strong>$3,792,894</strong></td><td>$316,075</td><td>$77,406</td></tr><tr><td></td><td></td><td>50</td><td>$4,741,118</td><td>$395,093</td><td>$96,758</td></tr><tr><td><strong>Mixed grid (0.45)</strong></td><td>62,201.25</td><td>30</td><td>$1,828,717</td><td>$152,393</td><td>$37,321</td></tr><tr><td></td><td></td><td>40</td><td><strong>$2,438,289</strong></td><td>$203,191</td><td>$49,761</td></tr><tr><td></td><td></td><td>50</td><td>$3,047,861</td><td>$253,988</td><td>$62,201</td></tr></tbody></table>

> **Net to park** = saleable × price × 0.98 (your 2% seller leg).
>
> **Burn** = gross × 0.02 (half of the 4% protocol fee). Settlement requires $EDM; **no EDM, no action.**

#### Scenario B — With BESS  (time-shifting into dirtier hours)

**Assumptions:** 25% of annual energy is shifted to evenings via 100 MW / 200 MWh BESS, RTE = 88%.

**Delivered energy splits:** 112,500 MWh day (not shifted) + 33,000 MWh night (discharge).

Avoided tons are computed hour-by-hour with the relevant MEF, then the same 0.9215 factor is applied.

* **Mixed grid uplift** (e.g., 0.45 → 0.70 from day to evening):

  **Saleable = 67,937.59 t/yr** (vs 62,201.25 without BESS) → +5,736 t/yr

| **Grid band (day → peak MEF)** | **Saleable tCO₂/yr** | **Price $/t** | **Net / yr**   | **Net / month** | **Burn / yr** |
| ------------------------------ | -------------------- | ------------- | -------------- | --------------- | ------------- |
| Mixed (0.45 → 0.70)            | 67,937.59            | 30            | $1,997,365     | $166,447        | $40,763       |
|                                |                      | 40            | **$2,663,153** | $221,929        | $54,350       |
|                                |                      | 50            | $3,328,942     | $277,412        | $67,938       |

* **Coal/gas-heavy uplift** (e.g., 0.70 → 0.80) is small because the MEF spread is narrower: 96,895.73 t/yr vs 96,757.50 (≈ +138 t/yr).

### Summary

* At **$40/t**, a **100 MW park** on a **coal/gas-heavy grid** nets about **$3.79M/year ($316k/month)** with no storage.
* On a **mixed grid**, no storage nets about **$2.44M/year ($203k/month) at $40/t**.
* **Adding BESS** (25% shift, 88% RTE) on a **mixed grid lifts** that to about **$2.66M/year ($222k/month)** at $40/t—the uplift depends on the day→evening MEF spread.
* In all cases, 4% fees in $EDM apply; 50% of every fee burns on-chain (≈ 2% of gross burned).

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**One-claim law:** if you also sell energy attributes (RECs/GO/I-REC) for any portion of those MWh, EDMA **retires/immobilizes** them first and excludes those MWh from carbon. One kWh funds one claim.
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### Earnings bands

* Storage-shift in mixed grids: commonly **$300–$2,000+/yr for residential batteries**; higher for C\&I systems, depending on cycles and EF spread.&#x20;
* New capacity we cause in high-EF grids: $30–$60/t × measured tons; legacy PV in clean grids usually not eligible.&#x20;

### What you actually do (first week → first payouts)

* **KYC + wallet (minutes)** → run the additionality gate (fast yes/no).
* **Connect data;** ETT begin minting automatically.
* **Buy a small EDM buffer** (the app shows a fuel gauge). Admission Prefund (USD) = min( max( 0.02 × projected 3-month carbon revenue, $20 ), $1,000 )—staked in EDM so deposits/claims never stall; withdrawable on exit in good standing.&#x20;
* **Thereafter:** compute hourly emissionality → retire/immobilize any attributes → verify → issue → sell → claim, with 2% seller fee in EDM and 50% burn published per region.&#x20;

### Integrity&#x20;

* **Double counting:** impossible by design—retirement/immobilization comes before tons; external IDs and consumed ETT are recorded on-chain.&#x20;
* **Factor drift hand-waves:** each batch stores EF source/version; material restatements follow a documented SOP (no ad-hoc repricing of settled vintages).&#x20;
* **Pay without EDM:** **not on EDMA—no EDM, no action (gas and fees).**&#x20;

### Risks & how we manage them

* **EF quality.** Transparent hierarchy, versioned sources, losses/buffers; SOP for restatements.
* **Failing the gate.** Fast triage and reroute to R1/R2 so value isn’t lost.
* **Verifier backlog.** Panel of accredited verifiers, batch scheduling, published timelines.
* **Buyer concentration.** Two-sided marketplace, per-buyer caps, broker standby.
* **Payout/AML.** Regulated rails; KYC/sanctions; travel-rule compliance; geofencing as needed.&#x20;

### Non-negotiables

* **Ex-post only**
* **One-claim law** (energy attributes retired/immobilized first)&#x20;
* **EDM only**; no auto-swap&#x20;
* 4% total fee with **50% burn** until circulating supply reaches 100M.  &#x20;

### Cross-links

* **PoV Layer** (§9): `quorum, equality, one-claim, revocation`
* **Fees/Tokenomics** (§14/§18): 4% rule, denomination floor, **50% burn**&#x20;
* **Routes (§20)**: stacking with R1/R2/R3 without violating one-claim.

***

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**Bottom line**. Route 4 is how we turn projects we cause—and storage that actually pushes clean energy into dirty hours—into defensible carbon tons. Corporates get auditable impact; you get predictable, on-chain payouts; and every transaction tightens EDM supply by design.  &#x20;
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