Science Based Targets Initiative Partnership Proposal — Technology-Enhanced Carbon Integrity

Executive Summary

The urgency of climate action necessitates robust and credible carbon markets that can facilitate the transition to a net-zero economy. The Science Based Targets initiative (SBTi) is at the forefront of setting standards for corporate emissions reductions, particularly through its partnerships with CDP, UNGC, WRI, and WWF. The SBTi’s commitment to a net-zero standard that requires over 90% value chain reductions aligns closely with DaedArch Corporation's innovative sensor-based Monitoring, Reporting, and Verification (MRV) platform. This partnership proposal outlines a collaborative framework that leverages DaedArch’s ground-truth sensor data to enhance carbon credit integrity, thereby supporting the SBTi’s mission and its existing frameworks, including the Beyond Value Chain Mitigation and FLAG sector guidance for land-use and agriculture.

Value Proposition

The integration of DaedArch’s MRV platform into the SBTi framework offers substantial value across several dimensions:

1. Enhanced Credibility: By providing continuous, real-time monitoring and automated reporting, DaedArch’s technology ensures that carbon credits are backed by verifiable data, thus enhancing the integrity of the carbon market. This aligns with the SBTi’s emphasis on robust methodologies for emissions reductions.

1. Support for Value Chain Reductions: As the SBTi’s net-zero standard necessitates reductions of 90% or more across the value chain, DaedArch’s platform can assist organizations in tracking and verifying emissions reductions at every stage, ensuring compliance and transparency.

1. Facilitation of Beyond Value Chain Mitigation: The SBTi’s allowance for limited credit use under the Beyond Value Chain Mitigation framework can be supported by DaedArch’s technology, which can provide the necessary data to substantiate claims of carbon neutrality and offset usage.

1. Alignment with FLAG Sector Guidance: DaedArch’s MRV capabilities can be particularly beneficial for organizations in the land-use and agriculture sectors, providing precise data that can inform sustainable practices and compliance with SBTi’s FLAG sector guidance.

1. Innovation in Carbon Markets: By collaborating with DaedArch, the SBTi can position itself as a leader in integrating advanced technology into carbon markets, setting a precedent for other industry associations to follow.

Partnership Model

The proposed partnership will focus on the following key components:

1. Collaborative Framework: Establish a joint working group comprising members from both DaedArch and SBTi to ensure alignment on goals, metrics, and methodologies. This group will facilitate the integration of DaedArch’s MRV platform into the SBTi’s existing frameworks.

1. Data Sharing Agreements: Develop agreements that outline how data will be shared, ensuring compliance with privacy regulations while maximizing the utility of DaedArch’s sensor data for SBTi’s objectives.

1. Joint Communication Strategy: Create a communications plan that highlights the partnership’s objectives, successes, and case studies to engage stakeholders and promote the benefits of enhanced carbon integrity.

1. Capacity Building: Conduct training sessions and workshops for SBTi member organizations to educate them on the use of DaedArch’s MRV platform, emphasizing its role in achieving science-based targets.

1. Feedback Loop: Establish a mechanism for continuous feedback from SBTi member organizations to refine and enhance the MRV platform based on user experiences and evolving market needs.

Pilot Program

To demonstrate the efficacy of DaedArch’s MRV platform within the SBTi framework, we propose a pilot program structured as follows:

1. Objectives:

• Validate the accuracy and reliability of DaedArch’s sensor data in real-world applications.
• Assess the integration of the MRV platform with SBTi’s methodologies for emissions reductions.
• Gather insights and feedback from participating organizations to inform future enhancements.

1. Selection of Participants: Identify a diverse group of SBTi member organizations across various sectors, with a focus on those in land-use and agriculture, to participate in the pilot.

1. Implementation:

• Deploy DaedArch’s MRV sensors at selected sites within participant organizations.
• Facilitate training sessions to ensure effective use of the platform.
• Monitor data collection and reporting processes over a defined period (e.g., 6-12 months).

1. Evaluation: Conduct a comprehensive evaluation at the end of the pilot period, measuring key performance indicators such as data accuracy, user satisfaction, and the impact on carbon credit integrity.

1. Reporting: Prepare a detailed report outlining findings, lessons learned, and recommendations for scaling the integration of DaedArch’s MRV platform within the broader SBTi framework.

Timeline

The proposed timeline for the partnership and pilot program is as follows:

| Phase | Duration | Key Activities | |-------------------------------|------------------|-------------------------------------------------------| | Partnership Agreement | Month 1 | Finalize partnership terms and establish working group | | Data Sharing Framework | Month 2 | Develop data sharing agreements and communication plan | | Pilot Program Preparation | Months 3-4 | Select participants, deploy sensors, conduct training | | Pilot Program Implementation | Months 5-10 | Monitor data collection, provide ongoing support | | Evaluation and Reporting | Month 11 | Analyze results, prepare evaluation report | | Scaling and Integration | Month 12 | Discuss findings, outline next steps for broader integration |

Commercial Terms

The commercial terms of this partnership will include:

1. Cost Sharing: Both parties will agree on a cost-sharing model for the pilot program, covering expenses related to sensor deployment, data processing, and evaluation.

1. Revenue Sharing: Upon successful implementation and integration of DaedArch’s MRV platform into the SBTi framework, a revenue-sharing model will be established for any resulting products or services derived from the partnership.

1. Intellectual Property: Both parties will retain their respective intellectual property rights, with provisions for joint ownership of any new methodologies or innovations developed during the partnership.

1. Duration: The initial partnership agreement will be set for a period of three years, with the option for renewal based on the outcomes of the pilot program and ongoing collaboration.

1. Performance Metrics: Clear performance metrics will be established to evaluate the success of the partnership, including user adoption rates, data accuracy, and overall impact on carbon credit integrity.

Conclusion

The proposed partnership between DaedArch Corporation and the Science Based Targets initiative represents a significant opportunity to enhance the integrity of carbon markets through technology-driven solutions. By aligning DaedArch’s sensor-based MRV platform with the SBTi’s ambitious goals and existing frameworks, we can collectively drive meaningful progress toward a sustainable, net-zero future. We look forward to the opportunity to collaborate and contribute to the vital work of the SBTi in shaping a resilient and accountable carbon market.