Today we're launching REDD: a high-integrity, transparent market for preservation financing or REDD+ projects 🌳 A 🧵

2/ 🤝 We’ve mobilized a coalition of partners to bring REDD to market. @EcoRegistry and @Cercarbono certify the REDD+ credits under advanced registry infrastructure and an ICROA-endorsed standard. @renoster_inc uses the latest science to provide transparent and independent quality assurance. @ToucanProtocol provides the foundational architecture for the instrument. We’re also working with insurers to provide optional insurance and protect against the multitude of risks that REDD+ projects face.

3/ ☢ We’re launching REDD because the REDD+ market is broken. Buyers wanting to acquire REDD+ credits have to conduct lengthy due diligence to ensure a project represents real climate action and doesn’t land them on the front page of a newspaper. If they want to acquire credits, they don’t know a credit’s fair market value due to opaque prices, and many still execute transactions via emails and invoices. After they retire credits, buyers have to worry about a reversal event, such as the project developer defaulting or a wildfire, invalidating their offsetting claims. It is not a market that can scale and rise to meet the climate challenge.

4/ ⚙ REDD is a trading instrument with a transparent price that fluctuates based on the supply and demand of credits in its inventory. Users can execute transactions instantly to buy or sell REDD+ credits. REDD’s inventory is fully transparent and buyers can select the credits they want from the inventory. To sell a project’s credits using REDD and be made available to buyers, projects have to be reviewed by Renoster and pass their quality assessment.

5/ 🔎 Renoster will publicly release the project reviews, making a project’s due diligence fully transparent. Participants will have an in-depth review of a project’s additionality, baseline assumptions, and leakage, among other characteristics.

6/ 📊 It will also be the first trading instrument that doesn’t commoditize the underlying credits and prices projects according to their quality. The more effective a project is at avoiding emissions, the higher the price its credits will be bought and sold under the REDD trading instrument.