Product Update: Environmental Financial Product Tokenization

We first introduced Allinfra Climate’s User-Defined Formulas functionality when we announced the Green Finance Impact Reporting Tool in July 2023. It gives users of the platform full flexibility in customising formulas to calculate the specific KPIs or output data they need for reporting.

We are pleased to share that this functionality has now been upgraded and expanded in Allinfra Climate to allow for – not just the generation of on-demand reports – but also the creation of environmental financial products (EFPs) using that output data.

This means that our clients have an efficient method to create EFPs that have complex underlying calculations, such as carbon credits and digital environmental attributes, direct from source data in a single platform.

Who Is EFP Tokenization For?

Allinfra Climate’s EFP Tokenization is for owners of green projects, e.g. forestry projects, electric vehicle (EV) fleets, soil enrichment carbon farming, etc. They are producing EFPs because they plan to monetise by selling them to third party buyers or to meet net zero goals by retiring them.

Key Features and Benefits of EFP Tokenization

• Complex EFPs made simple – Users can now easily create EFPs with more complex underlying formulas or methodologies from within the Allinfra Climate platform, e.g. carbon credits.
• Works across different data types – EFPs can now be created using a variety of data types, ranging from satellite imagery to laboratory results, and incorporating various sources such as project-specific data combined with external data (e.g. operational grid data), accounting for any project monitoring protocols.
• Higher-quality end product – Accurate underlying data is permanently tied to EFPs and can be easily traced, avoiding traditional EFP pitfalls like double counting or lack of transparency.
• Transparent yet private – Allinfra Climate’s zero-knowledge private data rollups proves the provenance of the aggregated data to buyers without revealing the producers’ private granular data.
• Cost-effective – Eliminate intermediaries by using one end-to-end platform for all stages – from climate data collection, to product creation, to transfer/retirement of EFPs.

How It Works

1. Define parameters – First the user defines what they are going to collect (the sources of data) and why (what is being calculated – for instance, GHG emissions).
2. Build and deploy user-defined formulas – Once the parameters have been added, the user defines how those parameters will be used in formulas. The tool provides full flexibility – with any number of related or dependent formulas able to be defined and then verified by a third party, all from within the tool.
3. Submit climate data inputs – Once the formulas are deployed, the user can feed relevant data though the formulas and add any additional documentation to accompany that data as required. Data sources can be almost anything – from manually collected data to data direct from devices – and be fully integrated with Allinfra Climate. Again, a verifier can be nominated for each data input, with that data then signed by the nominated verifier, all executed within the tool.
4. Batch data into vintages – This allows users to batch their granular data into vintages, e.g. net electricity production or individual asset output.
5. Tokenize – Users can create an EFP by submitting batches of verified data through the deployed formula-sets, to be tokenized on-chain. This process also creates zero-knowledge proofs to prove data provenance.
6. Retire or transfer EFPs in the dapp – Users can then use the Allinfra Climate Dapp to easily interface with the blockchain to sell, transfer or even retire the EFP.

Why Use Allinfra Climate for EFP Creation

Carbon credits and other EFPs are powerful tools in achieving our climate goals. They also provide a revenue stream for green project owners. However, with the current scrutiny around traditional EFPs, we need a better solution when it comes to EFP creation.

Allinfra Climate provides creators of EFPs an efficient way to create higher quality product with the transparency needed around climate data and calculations.

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Are you a green project owner who is ready to create environmental financial products? We can help. Reach out to our team to learn more about Allinfra Climate.