American Carbon Registry Partnership Proposal — Technology-Enhanced Carbon Integrity

Executive Summary

This proposal outlines a strategic partnership between the American Carbon Registry (ACR) and DaedArch Corporation, centered on the integration of DaedArch's sensor-based Monitoring, Reporting, and Verification (MRV) platform into ACR's carbon credit framework. As the oldest private voluntary carbon offset program in the U.S., ACR has consistently demonstrated leadership in the carbon market, emphasizing permanence and additionality in its methodologies for agriculture and forestry. DaedArch’s innovative technology aligns seamlessly with ACR’s commitment to enhancing the integrity of carbon credits through continuous monitoring, automated reporting, and transparent verification chains.

This partnership aims to leverage DaedArch’s advanced sensor technologies to enhance the accuracy and reliability of carbon credit verification, thereby strengthening market confidence in ACR’s credits and contributing to the broader goals of climate mitigation.

Value Proposition

Enhanced Verification Integrity

DaedArch’s sensor-based MRV platform provides real-time, ground-truth data that enhances the verification of carbon credits. By integrating this technology, ACR can ensure that reported emissions reductions are not only accurate but also verifiable against established methodologies, such as ACR’s "Methodology for Improved Forest Management" (Version 3.0) and "Methodology for Agricultural Soil Carbon Sequestration" (Version 2.0).

Automation and Efficiency

The automation of data collection and reporting processes reduces the administrative burden on project developers and increases the efficiency of the verification process. This aligns with ACR’s objective of supporting both voluntary and compliance market credits by streamlining operations and reducing costs associated with third-party verification.

Increased Market Confidence

By adopting DaedArch’s technology, ACR can enhance the credibility of its carbon credits, thereby attracting a broader range of buyers in both voluntary and compliance markets. This is particularly relevant in light of the growing demand for high-integrity carbon credits that meet stringent standards for permanence and additionality.

Alignment with Regulatory Standards

DaedArch’s platform is designed to comply with existing carbon registry standards and methodologies, ensuring that data formats and reporting structures align with ACR’s requirements. This compatibility will facilitate seamless integration and adherence to ACR’s protocols, thereby maintaining the integrity of the carbon credit system.

Partnership Model

Collaborative Framework

The partnership will be structured around a collaborative framework where ACR and DaedArch work together to develop, implement, and refine the integration of sensor-based MRV technology into ACR’s existing methodologies. Key components of this partnership model include:

• Joint Development of Methodologies: Collaborate on the adaptation of existing ACR methodologies to incorporate sensor data, ensuring that the integration enhances the robustness of carbon credit verification.

• Shared Data Ecosystem: Establish a shared data ecosystem where sensor data is collected, analyzed, and reported in accordance with ACR’s standards, promoting transparency and trust in the carbon credit market.

• Training and Capacity Building: Provide training for ACR staff and project developers on the use of DaedArch’s MRV platform, ensuring effective implementation and utilization of the technology.

Revenue Sharing Model

A revenue-sharing model will be established to ensure mutual financial benefit from the partnership. The specifics of this model will be developed collaboratively, taking into account the anticipated increase in carbon credit sales resulting from enhanced verification integrity and market confidence.

Pilot Program

Objective

The pilot program aims to test the integration of DaedArch’s MRV platform within a select group of ACR-approved projects, focusing on agricultural and forestry methodologies. The objective is to evaluate the impact of real-time data on the verification process and to refine the integration for broader application across ACR’s portfolio.

Project Selection Criteria

Projects selected for the pilot program will be based on the following criteria:

• Alignment with ACR Methodologies: Projects must utilize ACR methodologies that can benefit from enhanced MRV capabilities, particularly in the areas of permanence and additionality.

• Diversity of Project Types: A diverse range of project types will be selected to assess the applicability of DaedArch’s technology across different sectors.

• Engagement of Stakeholders: Selected projects should have the engagement of key stakeholders, including project developers and local communities, to ensure comprehensive feedback and insights.

Implementation Steps

1. Project Identification: Collaboratively identify and select pilot projects in consultation with ACR stakeholders.

1. Technology Deployment: Deploy DaedArch’s sensor technology at selected project sites, ensuring that all data collection protocols adhere to ACR’s standards.

1. Data Collection and Analysis: Conduct continuous monitoring of carbon sequestration and emissions reductions, with data analyzed in real-time to provide actionable insights.

1. Reporting and Verification: Generate automated reports based on collected data, facilitating streamlined verification processes that align with ACR’s requirements.

1. Feedback and Iteration: Collect feedback from project developers and ACR staff to refine the integration process and address any challenges encountered during the pilot.

Timeline

| Phase | Duration | Key Activities | |-----------------------|------------------|---------------------------------------------------------| | Phase 1: Partnership Agreement | 1 month | Finalize partnership terms and revenue-sharing model. | | Phase 2: Project Selection | 2 months | Identify and select pilot projects in collaboration with ACR. | | Phase 3: Technology Deployment | 3 months | Deploy DaedArch’s MRV technology at selected sites. | | Phase 4: Data Collection | 6 months | Continuous monitoring and data collection from pilot projects. | | Phase 5: Reporting and Analysis | 2 months | Generate reports and analyze data for verification. | | Phase 6: Review and Refinement | 1 month | Collect feedback and refine integration for broader application. |

Total Duration: 15 months

Commercial Terms

Financial Investment

DaedArch will invest in the deployment of its sensor technology at selected pilot projects, covering costs associated with installation, maintenance, and data management. ACR will facilitate access to project sites and provide support for stakeholder engagement.

Revenue Sharing

A revenue-sharing agreement will be established, with specific terms to be determined based on the anticipated increase in carbon credit sales attributed to the enhanced verification integrity provided by DaedArch’s technology. The model will ensure that both parties benefit from the increased market confidence and sales resulting from the partnership.

Performance Metrics

The success of the partnership will be evaluated based on key performance metrics, including:

• Accuracy of Carbon Credit Verification: Comparison of verification outcomes before and after the integration of DaedArch’s MRV platform.

• Market Uptake of Carbon Credits: Analysis of sales data for ACR carbon credits during and after the pilot program.

• Stakeholder Satisfaction: Feedback from project developers and ACR staff regarding the usability and effectiveness of the integrated MRV system.

Conclusion

The proposed partnership between the American Carbon Registry and DaedArch Corporation represents a significant opportunity to enhance the integrity and efficiency of carbon credit verification in the voluntary and compliance markets. By leveraging DaedArch’s sensor-based MRV technology, ACR can further solidify its position as a leader in carbon market standards, ensuring that its credits are recognized for their permanence and additionality.

We look forward to discussing this proposal in further detail and exploring the potential for a transformative partnership that sets new benchmarks for carbon credit verification integrity.