R6: REDD+/IFM
What this route does.
R6 converts high-integrity forest protection and better forest management into verified, ex-post avoided-emission tons that buyers can defend. Integrity is non-negotiable: evidence is packaged into a GRO (tamper-evident MRV spine), accounting is conservative (baseline, leakage, uncertainty, permanence buffer), and one-claim law prevents double use across energy and carbon. Settlement mirrors other routes: fees are paid in $EDM (2% seller at claim, 2% buyer at settlement) and 50% of every fee burns on-chain.
PoV in Action
Lock the accounting
For each issuance period we publish the baseline trajectory (“without project”), leakage (activity-shifting; market where material), uncertainty deductions, and a pooled permanence buffer (typically 10–20%). Sources/versions are recorded so restatements follow SOP, not ad-hoc edits
Issue ex-post, then sell & settle
Saleable = Gross × (1 − deductions for baseline/leakage/uncertainty) × (1 − permanence buffer)
GRO is consumed and locked (non-transferable forever). You choose posture (forwards/floors or spot); seller pays 2% in EDM at claim; buyer 2% at settlement; 50% burns (until circulating reaches 100 M). No EDM, no action—clean revert if short (denomination uses max(oracle, $0.50/EDM) to compute tokens owed; not a peg).
Market reality (who buys, where it pays)
Buyers.
Listed corporates with SBTs and Scope-3 pressure, brands de-risking claims, aviation hedging beyond CORSIA, banks covering financed emissions—migrating to CCP-aligned methods and registry-native retirements. Today, REDD+ spans ~$7–$20/t (wide dispersion), IFM clusters ~$15–$16/t, and strong stories can clear $20–$40/t.
Supply & integrity shift.
2024–H1’25 was a filter, not a funeral: VCM transactions dipped, average price ~$6.37/t, REDD+ share fell ~52%, while IFM activity tripled and priced firmer; removals priced ~3.8× reductions. ICVCM approved ART TREES v2.0, Verra VM0048, Verra JNR v4.1 for CCP; pipeline >400 Mt under these “new-gen” rules. Expect fewer—but stronger—tons.
Where R6 fits. At-risk landscapes (frontiers, road access, conversion pressure) for REDD+; managed forests with measurable practice shifts for IFM (reduced-impact logging, longer rotations, set-asides).
Eligibility (additionality & scope)
You qualify if your project prevents at-risk deforestation/degradation (REDD+) or reduces emissions via practice changes (IFM). We run a fast gate: rights/consent (tenure/FPIC), plausible causality, feasible leakage controls. Weak stories are rerouted (e.g., R5 ARR, R8 soils/biochar) instead of forced.
Worked examples
Template. Saleable_t = Gross_t × (1 − deductions) × (1 − buffer)
Illustrative multiplier: deductions 25%, buffer 15% → 0.6375.
A — REDD+ (unplanned loss), 50,000 ha (tropical)
Historic loss 0.5%/yr; carbon stock 150 tCO₂/ha on lost patches.
Gross = 50,000 × 0.005 × 150 = 37,500 t/yr → Saleable ≈ 23,906 t/yr.
Revenue at $30/t → $717k/yr gross; $702k/yr net after 2% seller fee in EDM. Bands: $20/t → $468.6k net; $40/t → $936k net.
B — IFM (longer rotations + RIL), 10,000 ha (temperate)
Baseline harvest 1.5 tCO₂/ha/yr; improved practice saves 0.6 t/ha/yr.
Gross = 6,000 t/yr → Saleable ≈ 3,825 t/yr.
At $20/t: $76.5k gross → $75.0k net (2% seller fee).
Admission prefund (EDM), so claims don’t stall.
min( max( 0.02 × projected 3-month gross, $20 ), $1,000 ) — staked in EDM; the app shows a fuel gauge.
What you actually do (week 1 → first issuance)
KYC + wallet (3–5 min) → Additionality gate (fast yes/no) → Connect data (plots, RS, harvest, labs) → GRO mints as you monitor → Lock accounting plan (baseline, leakage, uncertainty, buffer) → Verify → issue ex-post → sell → claim. Cadence is typically annual; some IFM go semi-annual once stable.
Integrity by design
Ex-post only. We issue after the monitoring period closes and a verifier signs—no hypotheticals.
GRO is the auditable spine. RS + plots + harvest + labs bound by time/space; GRO is consumed at issuance and non-transferable thereafter.
Conservative baselines & leakage. Published deductions; market leakage considered where material.
Permanence with teeth. 10–20% buffers, reversal monitoring, clawbacks for deliberate loss.
One-claim enforced. Overlapping instruments are retired/immobilized first; registry IDs are anchored on-chain.
Fees & settlement (same canon as other routes)
EDM = gas & fees. If you don’t hold EDM, nothing moves (clean revert; no auto-swaps). 4% total per sale (2% seller in EDM at claim; 2% buyer at settlement, EDM discount optional). 50% of all fees burn until 100 M circulating. $0.50/EDM is a fee-denomination floor, not a price peg.
Risks & mitigations
Baseline drift / method changes. Accounting plans versioned on-chain; re-issuance SOP for material restatements; we track CCP-aligned methods (ART TREES, VM0048/JNR, new IFM guidance).
Verifier backlog. Panelized verifiers, batch scheduling, published timelines.
Buyer concentration. Two-sided book, per-buyer caps, standby brokered offtake.
Non-negotiables
Ex-post only
Additionality first
One-claim law
EDM only; no auto-swap · 4% total fee; 50% burn to 100 M circulating.
Bottom line. Route 6 is the finance-grade lane for defensible reductions: one evidence spine (GRO), one conservative accounting plan, one cadence, one cash rail—and one-claim law enforced in code. That’s what 2025 buyers pay for: proof they can defend—and money you can count on.
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