Frequently Asked Questions
Everything that you should know about Nori.

General

Nori is on a mission to reverse climate change by making it as simple as possible to pay people to remove carbon dioxide from the atmosphere. Nori is building the open source market infrastructure to allow for carbon removal projects to measure and monetize their activity. Our voluntary marketplace, based on blockchain technology, will enable carbon removal suppliers to connect directly with buyers, improve efficiency, and reduce costs.

Humanity would not be as successful as it has been without affordable and reliable fossil fuels. However, burning fossil fuels releases carbon dioxide and other greenhouse gases into the atmosphere, exacerbating the greenhouse effect. There are only two known ways to manage the greenhouse effect: reduce the amount of new emissions into the atmosphere (mitigation), and remove the past emissions that are already there (carbon removal). We are past the point where mitigation alone can reverse climate change. We need carbon removal.

We see addressing climate change as a waste management problem. Carbon-free sources of energy allow us to not create new waste. Adding a tonne of new waste to the atmosphere requires taking one tonne away. Nori’s aim is to become the first voluntary garbage collector of carbon dioxide.

Nori also seeks to make carbon removal a form of environmentalism that could be rewarding rather than punitive. If people can make money being carbon removers, we believe that much of the conflict between economic growth vs. the environment would vanish.

Carbon removal refers to any ecological or industrial approach that can take carbon dioxide out of atmospheric or oceanic circulation beyond what would have occurred naturally. While the approaches have varying scaling potential, costs, technological readiness, measurement techniques, permanence, energy consumption/production, and additional impacts, they are all similar in that they comprise a way to capture and store carbon dioxide.

There are several ways to remove carbon dioxide from the atmosphere. They fall into three main categories: natural, industrial, and hybrid.

Ecological carbon removal can be achieved through land and ocean management techniques. These approaches often present co-benefits that extend beyond carbon dioxide removed through regenerating or improving natural assets.

  • Soil Carbon Storage refers to techniques that can increase the organic matter (carbon) stored in soils on agricultural and managed lands through cropping and grazing, typically under the paradigm of regenerative agriculture.
  • Afforestation is the establishment of forests or stands of trees where there previously was no forest cover. Carbon dioxide is captured by photosynthesis and is stored in the biomass of trees.
  • Blue Carbon refers to carbon captured by the world’s oceans and coastal ecosystems. The carbon captured by living organisms in oceans is stored in the form of biomass and sediments from mangroves, salt marshes, seagrasses, seaweed, and algae.

Industrial carbon removal refers to engineered solutions that use synthetic and mechanical processes to remove and store carbon.

  • Direct air capture with mineral geologic sequestrationuses machines to extract and concentrate carbon dioxide to store in mineral carbonates with no economic value. This can be done under the seabed.
  • Direct air capture into products uses machines to extract and concentrate carbon dioxide into products ranging from concrete, polymers, graphene, and other materials containing carbon dioxide.

Hybrid carbon removal is a combination of ecological and industrial processes.

  • Bioenergy with Carbon Capture and Storage (BECCS) relies on biomass to remove carbon dioxide, generate energy at a power plant, and produce gaseous emissions which can be captured and stored underground.
  • Biochar relies on biomass to remove carbon dioxide and generate energy by using a process that starves the fuel of oxygen thereby leaving behind a carbon-rich residue that when spread over soil sequesters the CO2 in the ground.
  • Biosequestration in materials refers to any approach that leverages biology to store carbon in products ranging from carpets to clothes to building materials.
  • Enhanced weathering is a chemical process that occurs on land or in ocean that spreads minerals. Certain types of waste rock from mining operations can be exposed to carbon dioxide and combine with it to create mineralized carbon storage.

The first type of Carbon Removal Certificates (CRCs) on the Nori platform will be generated from agricultural projects that can store carbon dioxide in soils. We are starting here because of the crisis of soil carbon loss, the immense potential to store carbon in soils, and the unique features of the Nori design which enable risk mitigation against carbon losses and lower verification costs that do not exist in traditional offset markets. Through more regenerative farming practices there is a theoretical capacity to store ten billion tonnes of CO2 per year. By creating a financial instrument that supports growers to increase carbon dioxide in their soils, we’re also advancing a number of great co-benefits like drought resistance, reduced runoff pollution, and an overall improvement of soil health.

Since the Industrial Revolution, humankind has burned fossil fuels to produce energy which release greenhouse gases. Despite our understanding of the clear linkage between excess greenhouse gases in the atmosphere/oceans and global climate change, humans have been unable to stop emitting. While reducing and replacing carbon emissions are key components to slowing down the flow of greenhouse gases to the atmosphere, because carbon dioxide stays in the atmosphere for hundreds of years—warming the planet—the only way to stop the most severe effects of climate change is by balancing the total stock of carbon dioxide in the atmosphere. This can only be achieved through carbon removal. Carbon reduction is a start, but it’s simply not enough.

The easiest way to view this is an arithmetic problem. We are putting too many greenhouse gasses into the atmosphere and not taking enough out. Carbon removal helps create the necessary balance to roll back the effects of climate change.

Nori is unique in the carbon market space because we are focused 100% on carbon removal from the atmosphere. Paying people not to cut down existing trees is not a model that would qualify for CRCs in our market. Reversing climate change requires both decreasing current emission rates, as well as removing the 1.5 trillion tonnes of excess CO2 that's already up in the atmosphere. Many companies and initiatives focus on reducing present and future emissions, but Nori is the only market that deals exclusively in removing past emissions. Nori allows buyers to pay for CRCs in a first-in-first-out (FIFO) order as they’re entered into the marketplace. This commoditizes the removal of CO2 and removes the costly matchmaking process that occurs in traditional carbon offset markets.

Nori is also different from existing carbon markets by taking a software approach to reduce costs for suppliers and buyers through streamlining data collection. By accounting for the ownership of the CRCs on the blockchain, Nori eliminates the double-counting problem that has plagued past attempts at creating healthy carbon offsets markets. Nori’s cost structure is substantially different from traditional carbon offset markets. We do not charge fees to develop new methodologies, and only ever charges suppliers a one time registration fee to list projects.

For more details check out this Medium post https://medium.com/nori-carbon-removal/how-nori-compares-to-traditional-carbon-markets-d6f3d4102db2

The Nori marketplace has three distinct types of users involved:

A Supplier is a person or entity whose actions remove carbon dioxide from the atmosphere, store those elements in a terrestrial, industrial, subsurface, or aquatic reservoir, and offer CRCs for sale in the Nori marketplace. The initial suppliers in our network are American farmers and groups working with farmers who are removing carbon dioxide through their agricultural practices.

A Verifier is a qualified professional in a position of fiduciary responsibility who can attest to the accuracy of evidence provided annually by CRC suppliers to substantiate their claims that carbon dioxide has been removed from the atmosphere and stored in a terrestrial, industrial, subsurface, or aquatic reservoir. The initial verifiers we are working with have past experience working with traditional carbon offset markets.

A Buyer is the name given to a person or entity that uses NORI tokens to purchase CRCs in the Nori marketplace. Buyers might be corporations who want to negate their emissions or individuals who simply care about environmental sustainability.

Beyond active market participants, Nori is working alongside scientists, policy makers, businesspeople, and concerned citizens to build an open, transparent, and iterative platform.

Blockchain

Blockchain allows for a number of new opportunities to establish a market for carbon removal. Blockchain technologies allow us to issue a token, which sets one uniform price on removing carbon dioxide. Because a Carbon Removal Certificate can only be used once and is immediately retired, our blockchain system avoids the double counting which occurs in other traditional carbon offset schemes. Furthermore, using a blockchain solution allows for complete transparency of the new type of carbon removal asset. Blockchain allows for substantially lower verification costs through automation and removing the many middlemen involved in traditional carbon removal transactions. Lastly, through using a blockchain token as a medium of exchange, this solution removes the requirement for project sellers and buyers to find a counterparty, allowing all parties to participate in a fungible market.

For more details check out this Medium post https://medium.com/nori-carbon-removal/why-a-carbon-removal-market-belongs-on-the-blockchain-91da31127228

Here is information about why we chose the Ethereum blockchain specifically https://medium.com/nori-carbon-removal/why-were-building-a-carbon-removal-marketplace-on-ethereum-bba93f4c49fc

Nori needs its own token so that one NORI can always be exchanged for one Carbon Removal Certificate (CRC). NORI’s price in secondary markets will become the effective price of carbon removal. The token also enables price discovery from buyers with value-based pricing. One of our biggest goals is for NORI’s price to be treated similarly to the Brent Crude oil reference price but for carbon. This would for the first time establish a truly universal and market-driven price on carbon which is desperately needed.

For more details check out this Medium post https://medium.com/nori-carbon-removal/why-nori-needs-its-own-cryptocurrency-token-b2f1eef885c7

A Carbon Removal Certificate (CRC) is a digital asset—an electronic certificate—that is stored on the Ethereum blockchain in the Nori application. One CRC represents one tonne of CO2-equivalent heat-trapping gas that has been removed from the atmosphere and stored in an industrial, terrestrial, subsurface, or aquatic reservoir.

The answer is transparency. We are very open about how we do our work and who we are doing it with, and we want the public to participate with us in developing the platform that enables reversing climate change. When it comes to the token launch, any tokens that are distributed to members of Nori will be placed into a four-year vesting schedule with a one-year cliff, ensuring that every member of the team is dedicated and focused on the mission.

While all software applications and providers are susceptible to hacking, we have taken a few important measures to decrease that risk and augment our security. Our approach to dealing with that risk is two-fold:

  1. Our transparency with completely open-source software allows the public to audit our code and report on any bugs discovered in a responsible manner.
  2. We are following industry-standard practices on securing private data in ways that mitigate damage if an attacker is ever able to breach our data storage.

Buyers

If you are an accredited investor or institution there is a Regulation D sale which should be complete by October. We project the general public should be able to purchase CRCs later this year.

One NORI token allows for the purchase of a Carbon Removal Certificate (CRC). Think of it like a gift card that allows you to pay for carbon removal. The NORI can be purchased at any time and when it is used will immediately retire a Carbon Removal Certificate.

The price of a Carbon Removal Certificate is always one NORI token. The price of the NORI token is set by the market. The price the buyer pays depends upon when they purchase the NORI tokens, not when they buy CRCs. It is possible a company could buy NORI tokens when the price is $1, and then redeem those NORI for CRCs when the price of NORI is $5, and they'll have secured an effective $4 discount. The value we offer to the buyer is not only enabling time-value of money opportunities, but also in reducing the external transaction costs of having to work with brokers and consultants (which cost money) to find adequate projects. Since a buyer can show up and purchase from available inventory in our market at any time, their transaction costs become effectively zero. We make it far easier for buyers than is currently the case.

Absolutely! We would just advise any gift-givers to consult with their financial advisor first as there may be tax implications depending on where they live.

Suppliers

Whenever a seller performs a carbon removal action, we first verify that the carbon dioxide has actually been removed from the atmosphere and stored. The seller either uploads data manually, or the removal data is automatically reported into the Nori platform. That data gets verified and approved by a third-party verifier. This generates the creation of a new Carbon Removal Certificate that enters a queue where it can be purchased by a buyer. If you are interested in becoming a Nori supplier, please fill out this form so we can get to know each other!

No. We work with third-party verifiers who conform to our established methodology standards to verify carbon removal data.

One CRC can always be redeemed for one NORI token which will fluctuate in value according to any secondary markets where it trades. For each CRC you sell, you’ll receive one NORI token. You may sell any unrestricted NORI for fiat currency or other cryptocurrency immediately or wait for the time of your choosing.

There are numerous benefits to regenerative farming, such as saving on fertilizer, machinery, and gasoline. Plus, there’s less carbon dioxide going into the atmosphere because of the reduced need to refine the nitrogen through ammonia production. With regenerative farming, farmers don’t need to spend money on fuel sources to power their plow. They end up with more carbon in their soil, which makes their crops grow bigger, better, faster, and more nutritious.

Nori is adding another benefit to farmers who participate in the marketplace. For every tonne of carbon dioxide they remove and store in the soil, they get paid with a NORI token. Farmers increasingly are doing regenerative farming for the economic and environmental benefits. Farmers in our network can receive payments for the ecosystem services they are already providing, encouraging the growth of regenerative agricultural practices.

We're working with farmers, farm developers, and farm technology developers right now to build this product in a way that provides real value to the farmers while ensuring the removed CO2 is verified accurately and credibly. Regenerative agriculture can provide an enormous boon to farmers (better crop yields, better water retention) but the transition can be difficult and complex depending on factors like who owns the land. We're engaging with different partners to make sure we're building a system that can be beneficial to both farmers and buyers of their CRCs. There are pilot programs beginning soon. If you’d like to participate, please get in touch with us.

Nori is adding another benefit to farmers who participate in the marketplace. For every tonne of carbon dioxide they remove and store in the soil, they get paid with a NORI token. Farmers increasingly are doing regenerative farming for the economic and environmental benefits. Farmers in our network can receive payments for the ecosystem services they are already providing, encouraging the growth of regenerative agricultural practices.

If it turns out that a farm that was claiming CRCs is no longer removing carbon dioxide, or the CRCs become invalid because, for instance, a supplier breaks a contract by tilling (which re-releases carbon dioxide), Nori has built a self-insurance mechanism that makes the buyers whole if this were to occur. Both suppliers and Nori will share in this risk, and we will use tokens held in reserve to automatically purchase new Carbon Removal Certificates (CRCs) on behalf of the buyer in the amount of any overreported CRC numbers or leakage from changed practices.

To start, we are piloting our marketplace with farms in the United States. We plan to work with farms in key markets outside the U.S. in the not-too-distant future, including Canada.

The Future of Nori

The NORI token sale (in the form of a SAFT) is currently underway for accredited investors and buyers. It is expected to close by end of February, 2019. We are currently working with pilot farms to gather their cropping data and we are engaged with them to improve our cropping soil carbon methodology to generate Carbon Removal Certificates (CRCs). We project a target launch date of our platform later this year.

We’d love to hear from you! We are subscribing farmers who want to pilot our system. Please fill out this form to tell us more about you and we will be in touch.

After launching the cropping methodology, we intend to add managed grazing projects and agroforestry. Industrial technologies are a little farther off, and they are primarily doing Carbon Capture and Use (CCU) rather than Carbon Capture and Storage (CCS) for the moment. As industrial technologies continue to plummet in cost, we will be ready to help them monetize their carbon removal.

At the moment, no. In the future, our platform will enable anyone to propose a system to estimate and quantify carbon dioxide removal for any process to go through an open peer review system.

There are many ways!

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