Coffee Carbon credits Sold at NMKR triggers $9 trillion in Climate change finance for Cardano

[GENERAL] Name and surname of main applicant

Toshimasa YAGI/Value way Inc.

[GENERAL] Are you delivering this project as an individual or as an entity (whether formally incorporated or not)

Entity (Incorporated)

[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

No

[GENERAL] Summarize your solution to the problem (200-character limit including spaces)

 The project will start with the sale at NMKR of carbon credits developed from coffee waste using the biochar method; $9 trillion in climate change finance will be committed to Cardano.

日本語はこちら

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

No

[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.”

No dependencies

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

No

[GENERAL] Please provide here more information on the open source status of your project outputs

No

[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

[SOLUTION] Please describe your proposed solution

Climate Change Financing, web3 (ReFi) and Cardano

While the web3 market, including NFT, is in a winter period, ReFI is growing because it is linked to social issues. This is due to the importance of climate change financing.

According to the Climate Policy Initiative, global climate finance needs to increase to about $9 trillion annually by 2030 to limit average global temperature rises in line with the Paris Agreement※1. Europe alone requires €800 billion in energy infrastructure investment to meet its 2030 climate targets. The region needs a total of €2.5 trillion needed for the green transition by 2050.In Japan, the GX Promotion Act has also passed a combined public-private investment of 150 trillion yen over 10 years.

This time, as an action to influence the ReFi market in Cardano, we will develop a biochar methodology※2 and develop and sell carbon credits, which will be sold on NMKR to accelerate climate finance in Cardano.

Perceive the problem,reasons,engage

Regeneractive Coffee Way

This project documents the long journey of the Coffee value chain on the theme of regeneration: it consists of three categories and seven actors. The important thing is to get an overall picture of this long journey.

Value chain

1. Category1. Visualization
2. Category2. Real coffee eco system
3. Category3.NFT Fluidisation

Visualisation was completed at Fund9 and will be updated and made available to other companies. here. https://cms.valueway.me/p/detail/1/

Actor:Real world

• Coffee carbon footprint※3 displayed to consumers in participating shops
• Purchase of Coffee grounds from shops
• Collection, storage
• Charcoal production
• Agricultural application

Actor:Carbon credit(Tech)

• Carbon credit certification (Assuming The European Biochar Certificate)
• 1t divided into 1000 fractions by NFT (fractionalize)
• Sales to municipalities, shops, manufacturers and coffee consumers
• Airdropping to the community that voted for us.

Area：

Decided from several candidate areas, including Kobe, Fukuoka, Matsumoto, Ashiya and Okinawa

Our impact

→Real

Two proof-of-concept experiments were conducted in Kobe last year. In the past two, legal clearance and biochar production were the demonstration objectives and no carbon credits※4 were developed. Therefore, this time the Fund 12 budget will be used to produce 1t of biochar from approximately 250,000 cups of coffee grounds to be used as raw material for the carbon credit methodology.

※Assumes 20g of coffee grounds are produced per cup after extraction

→Tech:

A NMKR studio API will be used to mint it as fractionalize NFT. This creates a new value generated from real-world consumption that will not only connect with ADA holders, but also with new Cardano users.NMKR Studio also leads to increased transactions because of its platform based on the Cardano blockchain.

MVP verification：

• Understanding the break-even point of production costs (collection, production, certification, farm sales)
• Carbon credit Spread of NFTs and identification of needs (counting the increase in the number of WALLETS)

【Q&A】

Q.Why is it linked to carbon credits?

A.Because carbon credits are positioned as one of the key instruments to combat climate change and it is cheaper to capture the $9 trillion in climate finance.

Q.Why utilize NMKR Studio, why not JPG store?

A.NMKR has API linkage and can be linked to carbon credits. And NFT creation is also possible within NMKR. On the other hand, JPGstore sells digital art that has already been completed. The above cannot be realized.

Q.What kind of NFTs will you sell in NMKR?

A. We will sell NFTs with access to CO2 removal certificates for carbon credits developed from coffee waste.

Q,What are the benefits of utilizing ReFi (Cardano) from the coffee market?

A. Coffee is consumed daily by more than 2 billion people around the world. We have the potential to bring in a large number of Cardano holders by creating contact points from coffee, which is a familiar part of our daily lives.

【Terminology】

※1 Paris Agreement: International framework on climate change issues adopted at the 2015 Conference of the Parties (COP21) to the United Nations Framework Convention on Climate Change and entered into force in 2016 LINK

※2 Biochar method: 

A mechanism for reducing carbon dioxide emissions using biochar, 

Application of biochar to agricultural land

※3 Carbon Footprint: Carbon Footprint of Products (CFP) is a measure of how much greenhouse gases are produced by a product or service. LINK

※4 Carbon Credit: Carbon Credit is a mechanism to issue and trade credits (emission credits) for the amount of greenhouse gases reduced or absorbed through afforestation or the introduction of energy-saving equipment. LINK

[IMPACT] Please define the positive impact your project will have on the wider Cardano community

Bring value to the Cardano Community? 

This MVP environmental contact with Cardano is created from real coffee consumers.

How to Measurering ?How will you share the outputs ?

Output through actual MVP including the number of visits to the Regenerative Coffee NFT (RCN) sales web and count of purchases.

＊Method of ownership.

RCN cannot be distributed secondarily. This is to prevent double counting of carbon credits. Therefore, their value is fixed at the point of purchase by the owner.

Share:Progress direction at the Eastern Hemisphere Meetup.

Impact

→Real

Up to 250,000 coffee consumers will be accessed to secure raw materials for the production of 1t carbon credits.

→Tech

1,000 will be sold to.

→Cardano

50 new cardano holders are envisaged.(5%)

Cost effectiveness

A fifty-wallet increase by utilising 170,000ADA funds may not seem cost-effective.

But consider.

Coffee is consumed daily by more than two billion people worldwide. This MVP is a validation of the potential to reach all consumption points of Cardano 's contact, and we are already preparing plans to take this to the next level of scale in producing and consuming countries.

[CAPABILITY & FEASIBILITY] What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?

CAPABILITY & FEASIBILITY

• We have already conducted two feasibility study in Kobe City to verify issues and countermeasures.

• We are also planning a project in Guatemala in collaboration with local government agencies and IBD_Lab, based on the details submitted to Fund10 .

Document

EN

https://drive.google.com/file/d/17FJCB-24L5UJHcbp5mbl8iZwEVj3dPUK/view?usp=drive_link

JP

https://app.box.com/s/81k9k1pw1pjz9uc0msbpmb8wuu0xzrpt

Fund9 Project Achievements

Sustainable coffee challenge

https://www.sustaincoffee.org/

Fund9 final report

https://drive.google.com/file/d/17F56ueamRswrElXCWkgXxXTCg0FhXymm/view?usp=drive_link

Fund9 demo

https://cms.valueway.me/p/detail/1/

Project Achievements

Valueway Inc. has been selected for the following public programmes

SDGs challenge( UNOPs,Kobe city,Hyogo prefecture）

https://sdgs-challenge.jp/startups/183/

TSUBASA JICA(（Japan International Cooperation Agency,IDB Lab ）

https://tsubasa-jica.com/startups-past/?fiscal_year=2022

[PROJECT MILESTONES] What are the key milestones you need to achieve in order to complete your project successfully?

Milestone 1：Jul-Sep 2024 27,113 ADA

【 Specification Definition / 仕様定義】

• Selection of sites for implementation

(carbonization facilities, collection stores, collection companies, agricultural land for application, etc.)

/実施場所の選定（炭化施設・回収店舗・回収業者・施用先の農地 etc）

• Flow determination for RCW / RCWのフロー確定
• Creation of promotional materials (flyers, pop-ups, etc.) / 販促物の作成（チラシ・ポップなど）
• requirement definition / 要件定義
• Design specifications finalized (wireframes completed) / デザインの仕様確定（ワイヤーフレーム完成）
• Legal check / リーガルチェック
• Project management/ プロジェクト管理

Milestone 2：Oct-Nov 2024　151,761ADA

【Development and implementation / 開発・実装】

• Coffee grounds collection / コーヒーカスの回収
• carbonization / 炭化
• Sales packing of biochar / バイオ炭の販売
• Agricultural land application / 農地施用
• PromotionBackend development/バックエンド開発
• Frontend development/フロントエンド開発
• Multilingualization (Japanese + English + Spanish)
• design implementation / デザイン実装（CMS,CFP visualize,NFT sales/intergrate）
• fractionalize
• Project management/ プロジェクト管理

Milestone 3：Dec 2024　37,676ADA

【Certification and Verification / 認証・検証】

• Credit Authentication /クレジット認証 (ECB)
• Promotion Unit testing/ユニットテスト
• Integration testing/統合テスト
• System testing/システムテスト
• End-to-end testing/E2E テスト
• Bug fixes/バグ修正
• Deployment/配置
• Project management/ プロジェクト管理

Final Milestone： Jan-Feb 2025 8,451ADA

【Sales and Reporting / 販売・報告】

• Conduct user acceptance testing / ユーザー受け入れテストの実施
• Analyze of users’ feedback / ユーザーからのフィードバック分析
• Bug fixes if necessary / 必要に応じてバグ修正
• Draft a project close-out report / プロジェクト終了報告書の作成
• Record a close-out video / クローズドアウト・ビデオの録画
• Project management / プロジェクト管理
• Legal and accounting / 会計

[RESOURCES] Who is in the project team and what are their roles?

Toshimasa Yagi. Founder CEO / roles:Project Management（tech）

• International Coffee Competition Cup of Excellence International Jury
• Member of Voluntary Carbon Credit WG, GX League (only food and beverage company)
• Guraduate acceralator of Founder Institute.
• Opened RIO COFEE in 2005, currently managing three stores. Engaged in specialty coffee industry as a coffee expert.

Yuki Nishide. CCO  / roles:roles:Project Management（real world）

Yuki Nishide is a professional address hopper who has lived in more than 110 locations throughout Japan. In 2021, he won the individual award in the WORKATION AWARD 2021 from among nearly 500 applicants.

He has initiated and promoted local projects throughout Japan, including Muragacha (Hakuba Village, Nagano Prefecture) and LOCAL NIGHT PICNIC (Shiojiri City, Nagano Prefecture).

[BUDGET & COSTS] Please provide a cost breakdown of the proposed work and resources

Total 173,908ADA

overall

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

Explanation of Return on Investment

Return

Sales

NFT sales: 1000ADA(@1ADA✖️1000)

PR : Per capita 0.68ADA

(Up to 250,000 cups ofcoffee consumers will be accessed to secure raw materials for the production of 1t carbon credits.)

Cost effectiveness

A fifty-wallet increase by utilising 170,000ADA funds may not seem cost-effective.

But consider.

Coffee is consumed daily by more than two billion people worldwide. This MVP is a validation of the potential to reach all consumption points of Cardano 's contact, and we are already preparing plans to take this to the next level of scale in producing and consuming countries.

Cost Explanation

• The unit cost of the development was an asset at ¥5,000 per hour. This is quite reasonable considering the current weak yen.

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