Vlinder Papariko

Summary

- The Papariko Project is an ambitious undertaking by Vlinder aimed at restoring degraded mangrove forests in Kwale County, Kenya.
- The project is focused on empowering the local communities, especially the women, by making them an integral part of the project implementation.
- The project proponent shares 50% of carbon revenues with local stakeholders, providing them with a share of profits over the next 30 years.
- The Papariko project follows the ‘Afforestation and reforestation of degraded mangrove habitats (AR-AM0014)’ methodology and is registered with Verra project ID 3660.
- Solid World’s liquidity pools provide necessary funding for the project's activities, empowering the project participants to carry out the essential work on the ground.
- Solid World is offering 300 forward credits each for each year from 2025 to 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.

Documents

CRISP_ Vlinder Papariko
Cover_Page_Vlinder_Papariko
Tokenization_Terms_Vlinder_Papariko

Project Overview

Climate action is not just about healing our earth and creating incentives to do good in the world, it’s also about realigning our global society to be more equitable.

Our collaboration with Vlinder on the Papariko Project in Kwale County, Kenya, is one of many examples showing the world the incredible potential that arises when finance, environmental stewardship, and community engagement converge.

The Papariko Project, an ambitious mangrove reforestation initiative, seeks to breathe life back into degraded mangrove forests, critical ecosystems known for their role in supporting biodiversity, absorbing vast amounts of carbon, and providing livelihoods for coastal communities.

Every successful project needs dedicated and passionate individuals, and Papariko is no exception. The heart and soul of this project are the local communities that are not only beneficiaries but also stewards of these re-emerging forests. Their active participation spans the entirety of the project, from identifying the appropriate areas for reforestation to planting and monitoring the health of the new mangrove forests.



This collaboration goes beyond just mangrove restoration. The Papariko Project also serves as a significant catalyst for social development, creating jobs, and opening up new avenues of income. Activities like growing high-value crops such as mangoes and cashews, planting Casuarina forests for construction materials, and exploring opportunities in beekeeping and ecotourism provide diversified income sources for the community.



Our project partner Umita, managed by CEO Isabella Masinde, bridges the gap between the project and the community, ensuring smooth administration and community engagement. Isabella's experience in community development and engagement in Kenya is invaluable in navigating the complex socio-cultural landscape, managing stakeholders' needs, and ensuring the community's voice is heard. Isabella was recently nominated to the Kwale County Mangrove Management Committee to represent the Private Sector.

The role of women in the project deserves special recognition. They not only form a significant part of the workforce but also lead community-based organizations that run local nurseries.



Integral to this collaboration is the respect for the community's indigenous knowledge. Their wisdom guides us in identifying reforestation sites and advising on native species and planting techniques. Their long-standing stewardship of the forests provides invaluable insights that strengthen the project.

Dr. Michael Njoroge Githaiga, a professor at Embu University in Nairobi, has played a pivotal role in bringing this knowledge to the fore. His expertise in mangrove reforestation guides the project's implementation, while his commitment to educating the community bolsters local capacity and empowerment.

Solid World’s role has been crucial in financing these transformative initiatives. Our liquidity pools provide necessary funding for the project's activities, empowering Vlinder and their local partners to carry out the essential work on the ground.

Finally, mechanisms are in place to ensure the community's voice continues to guide the project. Steering committees, suggestion boxes, and community meetings serve as platforms for expressing feedback, suggestions, and grievances. This constant dialogue ensures that the project remains responsive and adaptable to the community's evolving needs and aspirations.

The Papariko Project encapsulates the essence of environmental restoration and socio-economic development – a principle that is at the heart of Solid World's mission.

Technical Overview

The Papariko project follows AR-AM0014 methodology and is registered in the VCS registry. The vegetation on the project area is documented to be degraded mangroves. The project has shown additionality using alternative land use scenarios, barrier analysis and common practice analysis. Without the carbon finance, baseline scenario the pre-project land use, which is the degraded mangroves, will continue.

The project will plant 4 native species of mangroves and it will sequestrate an estimated 20 thousand tCO2e over a period of 2022-2042 based on the current planting area of 50 ha. The project aims to restore a total of 1500 ha area which can sequester 640 thousand tCO2e over the project period. The project will address issues including natural disaster risk reduction, biodiversity improvement and poverty reduction with sustainable livelihoods in the coastal communities.

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.

Project Status

Analysis using CRISP

Note: The graph above solely reflects the credit yield from completed planting activities. By only considering the credits from completed plantings for inclusion in the CRISP-M pool, the risk of non-delivery is effectively reduced.

The graph above illustrates the application of the CRISP rating system to the Vlinder Papariko 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 300 forward credits for each year from 2025 to 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 2025 to 2027.

Contracts

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.

Main Terms:

1-1 Backing: 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.

Guaranteed Delivery: 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.

Off-Chain Redemption: 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.