Realization of Carbon Minus Coffee that the more you drink, the more you contribute to carbon reduction

[GENERAL] Name and surname of main applicant

yg/Toshimasa Yagi

[GENERAL] Email address of main applicant

hello@valueway.me

Additional applicants

No

[GENERAL] Please specify how many months you expect your project to last (from 2-12 months)

8

[GENERAL] Please indicate if your proposal has been auto-translated into English from another language.

Yes

[GENERAL] Does your project have any dependencies on other organizations, technical or otherwise?

Yes

[GENERAL] If YES, please describe what the dependency is and why you believe it is essential for your project’s delivery. If NO, please write “No dependencies.” .

▪️South pole

Support Validation/Credit Issuance

https://www.southpole.com/blog-contributors/patrick-burgi

▪️VERRA

Organizations that certify carbon reductions

https://verra.org/validation-verification/

▪️Recycling System Center

Consulting organizations to understand and obtain the requirements of PCR for the CFP calculation method.

http://www.npo-rsc.org/

▪️SuMPO

Licensed organizations for CFP calculation formula (LCA version)

https://sumpo.or.jp/consulting/lca/idea/pricelist.html

[GENERAL] Will your project’s output/s be fully open source?

No

[GENERAL] If NO, please describe which outputs are not going to be open source. If YES, please write “Project will be fully open source.”

Because it cannot be open-sourced unless it is added to the state of ready implementation in Atala prism.

[METADATA] Category of Proposal

dApp

[METADATA] SDG rating

SDG Goals

2 - End hunger, achieve food security and improved nutrition and promote sustainable agriculture

3 - Ensure healthy lives and promote well-being for all at all ages

8 - Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

12 - Ensure sustainable consumption and production patterns

13 - Take urgent action to combat climate change and its impacts

SDG Subgoals

12.3 - By 2030, halve per capita global food waste at the retail and consumer levels and reduce food losses along production and supply chains, including post-harvest losses

13.3 - Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning

2.4 - By 2030, ensure sustainable food production systems and implement resilient agricultural practices that increase productivity and production, that help maintain ecosystems, that strengthen capacity for adaptation to climate change, extreme weather, drought, flooding and other disasters and that progressively improve land and soil quality

3.9 - By 2030, substantially reduce the number of deaths and illnesses from hazardous chemicals and air, water and soil pollution and contamination

[IMPACT] Please describe your proposed solution.

Problem

• The issue of climate change is one that the entire world must work to solve. However, very few people are aware of the amount of greenhouse gas emissions that go into making a cup of coffee, and the steps that can be taken to reduce these emissions. We need to have opportunities to face this issue and take action to solve it.
• Coffee is grown and consumed all over the world. However, research shows that coffee production will be halved by 2050 due to climate change caused by greenhouse gases.

Solution and Prove

• This idea is to record and visualize the carbon footprint of each coffee value chain on Cardano, and provide an opportunity to think about climate change and take action to solve it through consumption, for example, by adopting coffee that contributes more to reducing greenhouse gas emissions.
• We also aim to convert coffee residues into carbon credits through resource recycling, and to make it possible to buy and sell coffee residues as NFT.(As of July 2023, Verra will not be able to sell NFT coffee residue, but will aim to sell it when it becomes available.)

Impact on Cardano

• Planning a project with the Colombian government, IDB_Lab and JICA to produce biochar from more than 10 tons coffee wastes every day and apply it to more than 300 farmers.
• When the above is realized, it will lead to the expansion of the ecosystem by increasing the number of users in line with the real economy.

Details

• Carbon foot print is measured according to international standards such as ISO 14067. International standards, including Japan, have changed from conventional GHG protocols to more precise LCA-based standards. Carbon Credit is a credit certified by a certification body such as VCS. The Carbon Credit is a credit certified by a certification body such as VCS, and the certification is secured by recording these credits in Cardano.
• The certification of credits is being prepared to start in Colombia with the cooperation of the government and others, and will travel to Colombia in August to obtain certification by the end of 2024.
• The service integrating the visualization of resource recycling and GHG reductions from the consumer's perspective is unprecedented, and an international patent application has been filed (PCT/JP2022/021664).

[IMPACT] How does your proposed solution address the challenge and what benefits will this bring to the Cardano ecosystem?

Impact 1: Carbon Credits

• The largest coffee producing countries are in Latin America and Africa, which coincide with the economies that Cardano is targeting. This time, we will start with Colombia.
• If this development is successful, we are looking to develop credits in East Africa, mainly Ethiopia, in the next round and beyond.

Impact 2: Cardano awareness among coffee consumers, especially in Europe and Japan.

• The current development is a beta version and the only impact on consumers is on-chain records, but when the official version is offered, we expect to issue utility tokens, which will contribute to Cardano through decentralization and economic zone expansion.(See whitepaper for more details.)

Quantification

The project will be developed in two separate milestones for each solution:

①improvement of CFP visualization software

The client for visualization software requires information input from coffee suppliers. In this sense, the scale and number of clients will be important, but we are working on the following two specifics.

• We cannot provide details, but we are in discussions with a major coffee chain for business collaboration.
• We are working on a framework with the local government, coffee shops, collection companies, and carbonization companies to conduct a demonstration experiment by March 2024 in Osaka City.

②Carbon Credit through resource recycling of coffee residues.

• Resource recycling projects for coffee residues are underway in Japan and Colombia.
• Japan: In spring 2023, a PoC will be conducted in Kobe City. Coffee residue was collected from beverage factories, carbonized, and spread on farmland.
• Colombia: With the support of JICA and the Colombian government, we have already found a local partner. The plan is to process 10 tons of coffee grounds discharged from a major coffee manufacturer every day. We made a site visit in August and are planning for full-scale operation starting in 2024.

Completion of the project

User

• users: MAU 200 (original) ~ 30000 (clients).
• transactions: 20 (original) ~ 300 (clients)

Carbon Credit

• 30tons per month (1 month feasibility in Colombia)

[IMPACT] How do you intend to measure the success of your project?

Project benefit

• By recording each transaction in a cup of coffee - country of origin, transportation, production, sales, and disposal - in a block, you can contribute to the ecosystem. Because coffee is a uniquely global product with 2 billion cups consumed worldwide every day, it is easy to connect to the efforts of all humankind.

Impact on Cardano

• Short-term: Impact as an example of private sector use of Cardano.
• Long-term: Impact of Cardano wallet ownership on hundreds of millions of coffee consumers worldwide.

Indicator

• Client: Qualitative survey of producers and manufacturers who hold a number of accounts.
• Users: Periodic qualitative surveys of consumers at the time of service.

[IMPACT] Please describe your plans to share the outputs and results of your project?

Outputs and results

• Report at Valueway LP. Press release.
• Report at Eastern town hall Meetup.
• Applicability to other projects in carbon footprint and carbon credits.

[CAPABILITY/ FEASIBILITY] What is your capability to deliver your project with high levels of trust and accountability?

The most suitable reason

• The proposer, Toshimasa Yagi has worked in the coffee industry for more than 20 years and participated as an international judge in the Cup of Excellence held in El Salvador this year. https://allianceforcoffeeexcellence.org/el-salvador-2023 /#1617922008283-0d0ddaee-ded3

• He has experience in the coffee industry and a proven track record in the coffee industry.

• An engineer who operates a stake pool and has completed the Plutus Pioneer Program will develop the project as the PM.

Funds management process

• Management is done through a shared wallet within the team, and withdrawal requests must be agreed upon by the team members. All withdrawals are recorded in the team's ledger.

[CAPABILITY/ FEASIBILITY] What are the main goals for the project and how will you validate if your approach is feasible?

Project Objectives

• Improvement of CFP visualization software
• To create carbon credits through resource recycling of coffee residues

Verification Methods for Targets

• Improvement of CFP visualization software
• Achieve a state where CFP information from coffee production to consumption can be visualized.
• To create carbon credits through resource recycling of coffee residues The greenhouse gas reductions obtained in the process of carbonizing coffee residue and spreading it on farmland are certified as Carbon Credit through a certification organization.

How to achieve this

1. Improvement of CFP visualization software
2. License agreement with IDEA, which has CFP calculation logic
3. Confirm compliance with national guidelines and obtain environmental certification so that the CFP figures can be used as CFP figures in Japan.
4. Incorporate CFP calculation logic into the tool developed by Catalyst9
5. To create carbon credits through resource recycling of coffee residues
6. Be able to issue credits certified by a certification body such as VCS.
7. NFT for VCS authentication

[CAPABILITY/ FEASIBILITY] Please provide a detailed breakdown of your project’s milestones and each of the main tasks or activities to reach the milestone plus the expected timeline for the delivery.

Milestone 1 (Oct) ：external requests

• IDEA Licensing Fee
• PCR (Product Category Rule) domestic certification consultation
• Compliance with CFP Guidelines
• Confirmation and explanation of emissions digit adjustment specifications
• Product life cycle, primary data input function
• On-chain record (NFT issuance function)
• Explanation of specifications
• Catalyst10 Project Management

Milestone 2 (Nov) :preparation

• Development Project Management
• Vendor Control
• Specification Confirmation

Milestone 3 (Dec-Jan) :fit

• Multilingualization (Japanese + English + Spanish)
• Emissions unit and digit adjustment development
• Product life cycle and primary data input function development
• CMS modernization
• NFT management screen for agricultural land

Milestone 4 (Feb-Mar) :development

• Terms of use creation
• Dashboard development
• Sales function development
• Methodology
• Validation
• Verification
• Maintenance
• Subscription Payment Page
• Authorization management linked to payment
• CMS design
• Dashboard design
• Sales site design

Final Milestone (Apr-Jun):sales preparation

• Documentation creation (operation manuals, sales materials, etc.)
• Test（CFP）
• Test bug fixes（CFP）
• Legal check
• Public relations (media attacks, relationship building, etc.)
• Landing page development
• Product release presentation
• Test（CREDIT）
• Fixing test bugs（CREDIT）
• Landing page design

For more information

[CAPABILITY/ FEASIBILITY] Please describe the deliverables, outputs and intended outcomes of each milestone.

Milestone 1 (Oct) : external requests

-Outputs Deliverables

• IDEA Licensing Fee
• PCR (Product Category Rule) domestic certification consultation
• Compliance with CFP Guidelines
• Confirmation and explanation of emissions digit adjustment specifications
• Product life cycle, primary data input function
• On-chain record (NFT issuance function)
• Explanation of specifications
• Catalyst10 Project Management

-Outcome

Cooperation with external organizations necessary for development

Milestone 2 (Nov) : preparation

-Outputs Deliverables

• Development Project Management
• Vendor Control
• Specification Confirmation

-Outcome

Align the information and management necessary for development

Milestone 3 (Dec-Jan) : fit

-Outputs Deliverables

• Multilingualization (Japanese + English + Spanish)
• Emissions unit and digit adjustment development
• Product life cycle and primary data input function development
• CMS modernization
• NFT management screen for agricultural land

-Outcome

Specification and development fit.

Milestone 4 (Feb-Mar) : development

-Outputs Deliverables

• Terms of use creation
• Dashboard development
• Sales function development
• Methodology
• Validation
• Verification
• Maintenance
• Subscription Payment Page
• Authorization management linked to payment
• CMS design
• Dashboard design
• Sales site design

-Outcome

Development and Design

Final Milestone (Apr-Jun) : sales preparation

-Outputs Deliverables

• Documentation creation (operation manuals, sales materials, etc.)
• Test（CFP）
• Test bug fixes（CFP）
• Legal check
• Public relations (media attacks, relationship building, etc.)
• Landing page development
• Product release presentation
• Test（CREDIT）
• Fixing test bugs（CREDIT）
• Landing page design

-Outcome

Preparation for Market Optimization.

For more information

[RESOURCES & VALUE FOR MONEY] Please provide a detailed budget breakdown of the proposed work and resources.

Milestone 1 (Oct) ADA 92,660

Milestone 2 (Nov) ADA 60,028

Milestone 3 (Dec-Jan) ADA 165,866

Milestone 4 (Feb-Mar) ADA 252,756

Final Milestone (Apr-Jun) ADA 95,524

Currency risk 10%: ADA 66,683

TOTAL ADA:733,518

＊Application funds are calculated at the following rates

• Hourly rateJPY_1¥5,000
• Hourly rateJPY_2¥7,000
• Hourly rateUS_1$34.5
• Hourly rateUS_2$48.2
• USD-ADA rate0.2441
• USD-JPY rate145

For more information

[RESOURCES & VALUE FOR MONEY] How does the cost of the project represent value for money for the Cardano ecosystem?

◾️ Explanation of Return on Investment

Coffee, one of the most familiar luxury items in our lives, consumption is increasing every year, and it is also the second largest international traded commodity in terms of global market value after oil. If Cardano were to take on the task of addressing the Coffee 2050 issue and the traceability of the coffee trade, it would not only increase Cardano's social recognition and market value, but also reduce greenhouse gas emissions, bringing us closer to solving the environmental problem.

◾️ Cost Explanation

• Calculate man-hours and amounts based on quotes and information from knowledgeable members of the business and specialized vendors.

[IMPORTANT NOTE] The Applicant agreed to Fund10 rules and also that data in the Submission Form and other data provided by the project team during the course of the project will be publicly available.

I Accept