- The Myanmar 2088 project, in association with Vlinder, is focused at restoring degraded mangrove areas and improving the lives of vulnerable communities in the Ayeyarwady region, Myanmar.
- Myanmar has a high rate of mangrove deforestation due to unsustainable practices and a lack of economic infrastructure.
- Alongside mangrove restoration, the project also aims to enrich the local economy and support families by employing a community-based model that educates and employs locals.
- The project proponent will spend 50% of net income from approved VCS projects for community development and national institutions.
- The project follows the ‘Afforestation and reforestation of degraded mangrove habitats (AR-AM0014)’ methodology and is registered with Verra project ID 2088.
- Solid World is offering 127 forward credits for 2024, 183 for 2025, 220 for 2026, and 437 for 2027 from the project.
- Solid World issues tokenized pre-paid forward carbon credits to help fund climate projects. We guarantee delivery of these credits and provide flexibility in their ownership. Along with the guaranteed delivery the credits offered also hold top priority of delivery. We also offer off-chain redemption.
The Vlinder Myanmar 2088 Blue Carbon project is an initiative aimed at restoring degraded mangrove areas and improving the lives of vulnerable communities in the Ayeyarwady region, the Gulf of Martaban, and Mon State in Myanmar. The project addresses several UN Sustainable Development Goals
The project's main goal is to replant severely degraded mangroves in various village areas in the Ayeyarwady region and the Gulf of Martaban.
Myanmar is a significant location for mangroves, but it also has one of the highest rates of mangrove deforestation due to unsustainable practices and a lack of economic infrastructure.
In addition to replanting mangroves to improve the local environment and global ecosystem, ths project also aims to enrich the local economy using a community-based model to educate and employ locals, provide scholarships, support families and make the lives of 55,000 people in the project area more resilient to extreme weather events. The project also provides urgent support to hospitals and schools in the project area, helping to fight Covid-19 challenges.
Mangrove forests are essential for biodiversity and serve as nurseries for various marine life. They also act as a filtration system, capturing silt and preventing siltation in seagrass meadows and coral reefs. The project also introduces income-generating activities that can help to reduce poverty among the region's vulnerable coastal communities.
This was the very first mangrove project that Vlinder invested in, and was the catalyst that pushed them to focus specifically on mangrove restorations.
The 'Mangrove Restoration and Sustainable Development in Myanmar' project follows AR-AM0014 methodology and is registered in the VCS registry. The project has shown additionality using alternative land use scenarios, barrier analysis and common practice analysis. Without carbon finance, the baseline scenario of degraded mangroves and abandoned lands, will continue.
The project will plant 6 native species of mangroves and it will sequestrate an estimated 9.4 million tCO2e over a period of 2020-2040. The project will address issues including natural disaster risk reduction, biodiversity improvement and poverty reduction with sustainable livelihoods in the coastal communities, apart from the carbon sequestration.
Note: At present, we have integrated only three of the Sustainable Development Goals (SDGs). However, as the project progresses it is expected to have many more SDGs, which we will duly update.
Analysis using CRISP
The graph above illustrates the application of the CRISP rating system to the Myanmar 2088 project. For each projected year (2023 to 2027), ratings from D to AAA are assigned, denoting varying levels of risk for non-delivery of forward carbon credit units. Lower net risk scores signify higher non-delivery risk, while higher scores indicate lower risk. The CRISP-M credits, prioritized within the AAA to A range, substantially mitigate non-delivery risk. The "Offered through Solid World" marker on the graph indicates that the CRISP-M pool includes 127 forward credits for 2024, 183 forward credits for 2025, 220 forward credits for 2026, and 437 forward credits for 2027.
The net score is calculated as the sum of weightages of CRISP risk factors: Carbon yield risk weightage (max 60), Climate catastrophe risk weightage (max 10), Policy and legal risk weightage (max 15), Vintage’s Net financial risk weightage (max 10), and Project developer risk weightage (max 5).
The table below illustrates the contribution of each CRISP risk factor to the net score for the vintages "Offered through Solid World" from 2024 to 2027.
Solid World takes pride in its commitment to transparency and market standardization. To achieve this, we make all legal contracts signed with our suppliers publicly available. By doing so, we aim to bring much-needed transparency to the market and establish a standardized approach for carbon credit transactions.
Each token issued by Solid World is backed by a prepaid forward carbon credit. This ensures that every token represents an exact amount of carbon reduction or sequestration, providing clarity and accountability in the market.
Every forward carbon credit within our platform comes with a guarantee of delivery. In the event of any unforeseen circumstances affecting the project's ability to fulfill its carbon credit commitments, the supplier is obligated to either repurchase their position or provide replacement credits. This guarantee safeguards the interests of buyers and maintains the integrity of the carbon credit market. Along with the guaranteed delivery the credits offered also hold top priority of delivery.
Ownership and Transfer:
Buyers have the opportunity to purchase forward carbon credit tokens, which grants them ownership of these credits. As token holders, buyers have the ability to hold, trade, or transfer their ownership rights according to their preferences.
Buyers with registry accounts can request the transfer of project forward carbon credits off-chain. To initiate this process, buyers can contact Solid World at [email protected]
. Upon receiving the request, Solid World facilitates the transfer by burning the project tokens and notifying the supplier of the contract transfer. Following the transfer, the counterparty for the buyer becomes the supplier, ensuring a seamless off-chain ownership experience.
By adhering to these clear terms and providing public access to legal contracts, Solid World establishes trust, standardizes market practices, and promotes transparency within the carbon credit industry.