F.A.Q

ORMEX is the leading standard for scalable and sustainable agricultural practices

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ORMEX is the only standard to offer a methodology and blockchain technology that enables the deployment of regenerative agriculture at scale.

The International “4 per 1000” Initiative launched by France on the 1st of December 2015 at COP21 showed that agriculture- particularly agricultural soils- plays a crucial role not only in food security, but also in the fight against climate change.

If the level of carbon stored in the top 30 centimetres of soil increased by only 0.4% (or 4‰) per year, the annual increase of carbon dioxide (CO2) in the atmosphere would be significantly reduced.

In light of the recent acceleration of global warming over the last few years, we need to deploy regenerative agricultural practices rapidly and at scale, which is why ORMEX is a game changer in the fight against climate change.

Different Greenhouse gases (GHGs): nitrogen (N2O), methane (CH4) & carbon dioxide (CO2) greatly contribute to global warming. They all have different relative warming impacts, and thus are weighted into carbon dioxide equivalent (CO2e) for ease of quantification.

In order to fight climate change, governments and companies must reduce their annual GHG emissions by 2050. On the other side, solutions are required to remove legacy gases that are already present in the atmosphere. Arable soils are considered to be carbon sinks: they can remove CO2 from the atmosphere and store it in the ground in the form of carbon.

The capacity of agricultural land to uptake carbon depends on multiple factors such as climate, the type of crop or vegetation cover, soil type or adopted management practices. Farmers can adopt regenerative practices that can drastically increase the amount of carbon stored in their land. As global agricultural land area covers 38% of the global land surface (FAO, 2020), ORMEX believes that agriculture can play a significant role in addressing climate change.

GHG reduction and GHG removal are two different methods of addressing climate change.

GHG reduction means reducing the amount of CO2e released into the atmosphere on an annual basis, by adopting more sustainable practices through Scopes 1, 2 and 3 of the GHG Protocol, such as using renewable energy sources, reducing energy consumption, promoting energy-efficient technologies and reducing waste.

On the other hand, GHG removal focuses on removing legacy GHG emissions that are already present in the atmosphere by storing them in various nature-based reservoirs, such as oceans, soil (in the form of Soil Organic Carbon, SOC), and trees (through generated biomass), or man-based & hybrid solutions, such as DACCs or BECCs.

A V-ACOR refers to an asset that is verified by an Independent Auditor (VVB) to allow the recognition of the removal of one tonne of CO2e, generated by a Certified Project and issued in a particular year (Vintage). Each Verified Carbon Credit represents a unit equivalent to one tonne of CO2 reduced or stored. A Carbon Credit is expressed in eq.CO2. Verified Carbon Credits are registered in the ORMEX Standard Registry on Blockchain with a unique identifier, as required by Voluntary Carbon Market (VCM) principles.

V-ACORs stand for Verified Agricultural Carbon Offset Removals & Reductions.

You can negotiate a bilateral agreement directly with an accredited V-ACOR supplier.

V-ACORs are accessible through spot purchases or advance market commitments, where buyers commit to acquiring V-ACORs from future issuances at pre-agreed prices. Additionally, you can opt to acquire V-ACORs-FUT, which are digital assets representing validated future carbon removal projections. V-ACORs-FUT refer to assets not yet Verified by an Independent Auditor, but for which the possibility of Verification and Issuance in the form of a Verified Carbon Credit for a given period (in accordance with the terms and conditions of the ORMEX STANDARD) are already known on the day of its issuance in this capacity and its related reservation.

Offsetting is part of many companies’ carbon strategies under Scopes 2 and 3 of the GHG Protocol. Offsetting carbon offers numerous benefits, such as:

• Meeting customer, investor and staff expectations to cut carbon emissions reported in sustainable and annual reports:

• Reach emission-reduction targets.

• Aligning with the UN 2030 Sustainable Development Goals.

• Participating in co-benefits other than GHG reductions, such as biodiversity, clean water and sustainable economic growth.

• Increase brand reputation and value.

• Enhanced brand integrity.

• Increased customer loyalty and sales.

Alternatively, these credits can also be re-sold for investment purposes.

V-ACORs can be Offset & Retired (with a Carbon Buyer who is the final user of the carbon credits) or Re-Sold (when transferred to a Carbon Buyer Account for further transfer from this account to another one).

V-ACORs are retired from the Registry when the Transfer of carbon offsets is generated with the reason of “Offsetting”.

Ormex has chosen to sequester carbon in agricultural soils through regenerative agriculture, a nature-based solution in the AFOLU (Agroforestry and other land use) sector.

Regenerative agriculture is a set of sustainable farming practices that focus on enhancing soil health, water quality and biodiversity while reducing the use of synthetic inputs. One of the key benefits of regenerative agriculture is its ability to sequester and capture carbon dioxide (CO2) from the atmosphere. By implementing strategies such as limited/conservation tillage, cover cropping, crop rotation, and the application of manure and compost, regenerative agriculture promotes the accumulation of organic matter in the soil. This organic matter acts as a carbon sink, efficiently storing carbon and reducing GHG concentration in the atmosphere.

Research suggests that farmland soil carbon storage has the potential to mitigate greenhouse gas emissions and help address climate change. By adopting regenerative agricultural practices on a global scale, it is possible to offset a significant portion of human carbon emissions, making it a valuable tool in the fight against climate change and contributing to food security for the current and next generations.

ORMEX’s platform leverages the advanced features of Polygon blockchain technology. This low carbon, multi-chain, Ethereum-compatible platform provides high scalability, a modular framework and enhanced security. Its compatibility with decentralised applications, combined with the potential to process thousands of transactions per second, sets it apart. This technology- beyond any other- makes it possible to achieve several objectives:

• The security of transactions of carbon credits and their final compensation through the immutability of the data.

• Avoidance of financial greenwashing thanks to the traceability of the transactions,

• The first automated and decentralised network between the independent actors involved in this process, including both buyers and sellers, as well as research centres, auditors, and European regulators.

• The digital platform will allow a holistic view and the auditing of transactions.

Furthermore, data immutability and greater traceability of transactions by different independent actors is ensured, which would not be possible to achieve with a standard centralised system and database.

Polygon description:

Polygon (formerly known as Matic Network) is a multi-chain platform for decentralised applications (dApps) and decentralised protocols aiming to address the scalability and user experience issues of the Ethereum network, without compromising its security.

High-level technical overview of Polygon:

• Multi-chain Model: Unlike other scalability solutions which are just simple sidechains, Polygon offers a multi-chain structure. This means Polygon can support multiple side chains all connecting back to the main Ethereum network.

• Modular Framework: Polygon is designed to be flexible. Developers can customise their own blockchain using Polygon's development framework to pick and configure consensus mechanisms, anchoring systems and more.

• Ethereum Compatibility: One of the key features of Polygon is its complete compatibility with the Ethereum network. This means that Ethereum's dApps, tools and smart contracts can run on Polygon without any modifications.

• Scalability: Polygon employs techniques like sharding and sidechains to increase the number of transactions per second (TPS). This allows Polygon to process thousands of transactions per second.

• Security: While Polygon employs its own validation nodes for its sidechains, it leverages Ethereum's security through an anchoring mechanism. Transactions are finalised on the Polygon blockchain and then anchored to the Ethereum blockchain.

• Interconnectivity: Besides being connected to Ethereum, Polygon aims to enable interconnectivity between different blockchains.

• Adaptability: Polygon is designed to support multiple consensus mechanisms like PoS (Proof of Stake), PoA (Proof of Authority), and more.

Polygon is a scalability solution for Ethereum that offers outstanding flexibility, security, and compatibility for developers and users. It seeks to create a multi-chain ecosystem that complements the Ethereum network while making it more scalable and efficient.

Onboarding as a buyer

The Buyer must follow the steps proposed by the Platform in order to create and submit an Account application on the ORMEX Platform. If your company profile does not yet exist, only an authorised representative of your organisation can create a profile.

The Registry Administrator reviews the new account application once submitted. All new accounts are subject to a “Know Your Customer” (KYC) review following the submission of the registration form. The Registry Administrator will send the account applicant a list of documents that must be submitted for the Know Your Customer review. The review takes 2 to 5 working days to complete. Email notification of account approval will be sent to the designated Account Manager email address provided in the new account application form. Once approved, Account Holders will receive an invoice to open their Buyer Account and may begin using all functions of the system available to their type of account.

It will be the buyer's responsibility to secure their user password.

Onboarding as a Project Holder

The Project Holder must follow the steps proposed by the Platform in order to have a Project Holder Account on the Platform and initiate and complete the first step in the Project Certification procedure- referred to as the Project Creation Phase (article 4.2)- and subsequently use the other Services enabling the various steps required by the ORMEX STANDARD to be completed.

Following its identification via the Platform, the Project Holder may submit a request to open its Project Holder Account. In this context, the Issuer undertakes to provide all the information required. If they fail to do so, they may not submit a request to create their Project Holder Account.

After receipt, verification and validation of the information by the ORMEX STANDARD, the Issuer will receive an email verifying their address, and it will be their responsibility to secure their user password, as well as an invoice to open their Issuer Account.

ORMEX mandates that all carbon removal activities within a project undergo independent verification by a third-party auditor sanctioned by the ORMEX Standard. The responsibility for compiling the necessary audit documentation lies with the project proponent. The quantity of credits allocated to the project's ORMEX Registry account aligns precisely with the auditor-verified figure. ORMEX suppliers decide how to take the credits to the market at their sole discretion. The third-party verified credits are issued to the project’s ORMEX Registry account.

If you experience a technical problem during transfer, please inform ORMEX’s support team at support@ormex.io who will investigate and find a resolution to the issue. On-chain analysis will be able to determine the location of the V-ACOR and ensure they make it to the proper account on the registry.