Please describe your proposed solution

The world is facing the huge challenge of climate change.

• The global cost of climate change damage is estimated to be between $1.7 trillion and $3.1 trillion per year by 2050.
• This includes the cost of damage to infrastructure, property, agriculture, and human health.
• This cost is expected to increase over time as the impacts of climate change become more severe.
• The poorest countries in the world are at greatest risk from the economic impacts of climate change.

Source: <https://www.nature.com/articles/s41467-023-41888-1>

There is an increasing call from investors and consumers for brands to demonstrate that they are part of the solution and not part of the problem. Cardano is already a comparatively green blockchain and massively more green than any proof of work system.

There is a potential to extend Cardano’s lead and create clear and simple market differentiation by making it ‘The greenest blockchain in the world’. To do this Cardano could programmatically ensure that any greenhouse gas cost that was incurred would be offset by purchased carbon offset investment. This would be a simple, on chain promise that Cardano runs at net zero.

Understanding the stepping stones and cost to deliver that vision is the problem we are trying to solve. The fully costed approach could then be presented to the community. DReps, representing the community, could choose whether to support the proposal or not.

The potential payoff is

1. a healthier planet
2. attracts a new set of investors, DApps and community members
3. a showcase for Cardano’s unique approach to liquid democracy
4. simple differentiation for Cardano versus other blockchains
5. growth of loyalty and sense of belonging to Cardano from the community
6. a surge in positive publicity and attention for Cardano
7. A showcase for the power of programmatic on chain promises with smart contracts that has the potential to carry across from the web3 to the web2 world. This is supportive of the message of ‘Blockchain done right’ and how Cardano is the next generation blockchain of choice.

It is anticipated that the benefits of running an ongoing on chain carbon offset scheme would significantly outweigh the costs.

According to the Crypto Carbon Ratings Institute

• Cardano is already energy efficient with its proof of stake model
• It has a total annualised electricity consumption of 704.91 MWh for the Cardano Network
• Total annualised carbon footprint of the Cardano network is 250.73 tonnes of CO2. The carbon intensity of the consumed electricity is 356g CO2 per KwH
• The marginal power demand per Transaction Per Second is 0.192 Watts

There are a range of Carbon offset providers. A UK based sample can be seen from MyCarbonPlan and Professional Energy They offer a range of approaches and price ranges from £6.50 to £20 and potentially even more. There is also potential for these figures to change over time.

Given this range the total cost to offset all of Cardano’s carbon footprint in 2023 would be

Low: 250.7 tonnes x £6.50 = £1629.55

High: 250.7 tonnes x £20 = £5014

To deliver on the solution there are a number of challenges that need to be overcome:

1. Evaluate the different potential providers of carbon offsets globally, and make a recommendation of which to use. This should balance considerations such as cost, reputation of the provider, and carbon capture efficacy.

2. Review pre-existing efforts in the space including relevant catalyst proposals e.g.Carbon offset DApp proposal and related work in the Cardano ecosystem

3. Propose a mechanism to take a validated measure of electricity consumption from the Crypto Carbon Ratings Institute. Ideally this could be done using an Oracle, though if this is not possible or presents too great a risk to Cardano, another mechanism could be proposed. Create the code that would enable this deliverable. Ensure fall backs are in place.

4. Propose a mechanism for making a payment to the selected carbon offset provider based on the electricity consumption indicated by the Crypto Carbon Ratings Institute and create the code that enables that vision. Ensure suitable fall backs are in place if there is a need to change offset provider.

5. Propose governance around the periodicity of review for payments. Should this be annual, every 5 years, or a promise forever for Cardano? The proposal should explore the benefits and risks with each approach and make a recommendation. A ‘forever’ promise is far stronger as a commitment and a way of securing hearts and minds than a promise for a year, that might be viewed as more transactional.

6. Conduct a detailed security audit of the code used to programmatically access the treasury to ensure any risks are managed.

7. Create a model of how future costs for carbon capture might grow with Cardano to allow better scenario planning.

8. Navigate the appropriate Intersect committees, working groups and interfaces so that the proposal can either be adopted or be put forward for a vote by the community so it can be adopted.

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

• DApp developers are likely to reference the green credentials as a reason to choose Cardano, drawing more DApp developers to the ecosystem
• Investors are likely to see the net zero carbon promise as a differentiator creating positive sentiment and increasing the price of ADA
• Cardano community members are likely to reference the green credentials as a source of pride and belonging to the community making them stronger advocates. They are also likely to benefit from the network effects of a growing community as new DApp developers and other ecosystem memes join.
• Intersect could benefit from a growth in membership

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?

The Sustainable ADA team, led by Razali Samsudin, Cole Bartlett and Teodor Petricevic, has extensive experience in impact measurement, blockchain innovation, and managing large-scale, multi-stakeholder projects.

Our team has been active within the Cardano ecosystem since Fund 4 and has consistently delivered high-quality, impact-driven solutions through Sustainable ADA and Impact Web3.

Our work includes producing the Cardano Impact Report 2023, integrating SDG frameworks into blockchain projects, and developing various impact measurement tools, including the IMS for Project Catalyst currently in development.

Razali Samsudin - Founder of Sustainable ADA &amp; Impact Web3, Contributor at Positiveblockchain.

Razali brings 17+ years of multidisciplinary academic and professional experience from the education, sustainability and social impact fields. Trained in Economics and Social Policy, Social Action Campaigning, and with a Masters in Sustainable Development from Dauphine University Paris, and a Masters in Environmental Technology from Imperial College. Since 2020, Razali has been conducting action research into web3 and blockchain for good use cases across the wider ecosystem.

Co-lead on the Catalyst Working Groups 2024 (First Cohort) alongside IOG, a first of its kind initiative to provide a framework for grassroot communities from across 6 continents to have their voices heard, and to enable and empower them to guide the direction of Catalyst.

<https://www.linkedin.com/in/razali-samsudin/>

Teodor Petricevic brings over 20 years of experience in social business development and project management across Europe, MENA, and Asia. His leadership in impact business acceleration for the UNDP strengthens the project’s capacity to scale and mobilize resources effectively.

Cole Bartlett, with a background in economics and sustainability, has co-founded key platforms like Sustainable ADA and driven the development of blockchain-based impact measurement tools.

We have successfully executed multiple Project Catalyst initiatives, such as research in SDG alignment, impact measurement tool development, and cross-chain collaborations, showcasing our capability to handle complex projects with high levels of trust and accountability. Our established partnerships with leading organizations further strengthen our network and resource mobilization capabilities.

Raz has begun the process at Intersect to kickstart and lead the “Cardano for Sustainability” Special Interest Group, and invite members of the Cardano community and the mission driven individuals who resonate with the vision of making Cardano the Greenest blockchain in the world.

Feasibility validation: We validate our approach through iterative development, community feedback, and pilot testing. The IMS is already in progress, and we are committed to continuous improvement based on stakeholder input and operational data. Regular updates, open-source code releases, and transparent reporting will ensure that the system is both functional and scalable.

Funds management: We adhere to strict financial accountability standards, ensuring all funds are allocated transparently and efficiently. The use of milestone-based project management allows us to track progress and adjust as needed, ensuring accountability at every step. We maintain clear records of all expenditures and provide regular reports to stakeholders, ensuring trust and alignment with Cardano’s values of transparency and decentralization.

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

Milestone 1: Milestone 1: Carbon Offset Provider Evaluation (Month 1)

A: Complete a comprehensive evaluation report on global carbon offset providers, assessing cost, reputation, and carbon capture efficacy.

B: Identify the top three providers with detailed comparisons and recommendations based on Cardano's sustainability needs.

C: Publish the report with rankings and rationale, reviewed and approved by project stakeholders.

Milestone 2: Milestone 2: Review and Integration of Existing Sustainability Efforts (Month 2)

A: Analyze existing Cardano-related sustainability proposals, including the Carbon Offset DApp, and provide integration recommendations.

B: Develop a detailed review and actionable insights on leveraging or enhancing current sustainability efforts within the ecosystem.

C: Document findings and proposed integrations, validated by the sustainability team and shared with stakeholders.

Milestone 3: Milestone 3: Emission Tracking System Development (Months 3-4)

A: Develop a real-time emission tracking system using data from the Crypto Carbon Ratings Institute, incorporating an Oracle solution if feasible.

B: Ensure the tracking mechanism accurately pulls data on Cardano’s electricity consumption and is tested for reliability.

C: Provide technical documentation and demonstrate the system, including test data and results shared with stakeholders.

Milestone 4: Milestone 4: Payment and Offset Implementation (Month 5)

A: Create an automated payment system to transfer funds to selected carbon offset providers based on tracked emissions.

B: Successfully simulate payment transfers with fallback options for changing providers, verifying functionality under different scenarios.

C: Present transaction logs and system documentation showing payment flows, along with a signed-off completion report by the finance team.

Final Milestone: Milestone 5: Project Completion and Closeout (Month 6)

A: Compile a final report summarizing project outcomes, lessons learned, and recommendations for future sustainability initiatives, accompanied by a project video.

B: Obtain approval for the comprehensive final report and create a video that showcases the project’s impact and engagement with the Cardano community.

C: Distribute the final report and video to stakeholders, followed by a formal presentation to the Cardano community highlighting project achievements.

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

Project Lead:

Razali Samsudin - Founder of Sustainable ADA &amp; Impact Web3, Contributor at Positiveblockchain.

Razali brings 17+ years of multidisciplinary academic and professional experience from the education, sustainability and social impact fields. Trained in Economics and Social Policy, Social Action Campaigning, and with a Masters in Sustainable Development from Dauphine University Paris, and a Masters in Environmental Technology from Imperial College. Since 2020, Razali has been conducting action research into web3 and blockchain for good use cases across the wider ecosystem.

Co-lead on the Catalyst Working Groups 2024 (First Cohort) alongside IOG, a first of its kind initiative to provide a framework for grassroot communities from across 6 continents to have their voices heard, and to enable and empower them to guide the direction of Catalyst.

<https://www.linkedin.com/in/razali-samsudin/>

Impact Management Systems Expert: Teodor Petricevic brings over 20 years of experience in social business development and project management across Europe, MENA, and Asia. His leadership in impact business acceleration for the UNDP strengthens the project’s capacity to scale and mobilize resources effectively.

Community/Research/Technology: Cole Bartlett, - Project Manager Unbox, Founder Sustainable ADA &amp; Impact Web3, KOL Rejuve AI, 0KPR Cardano Ring Community Manager, Positive Blockchain Contributor

Helping build innovative Web3 products and communities that redefine value creation through blockchain technology. Co-author of “Recalibrating Value, Identity &amp; Impact Through the Blockchain," expertise in designing impactful, user-focused solutions that bridge sustainability, social entrepreneurship, and blockchain. A strong foundation in economics and sustainability, collaborated with a variety of projects in the sustainability, blockchain, and AI space helping implement forward-thinking strategies that foster lasting, positive change.

• Linkedin [<https://www.linkedin.com/in/cole-bartlett/>]

Sarah Margono-Samsudin - Advisor

Expert on Education for Sustainable Development

Instant Network School (Vodafone Foundation), ex. UNESCO/ ex. CDP (formerly known as Carbon Disclosure Project)

Sarah Margono Samsudin is a dedicated professional currently working at Instant Network Schools, a collaboration between Vodafone Foundation and UNHCR (UN Refugee Agency), where she contributes to expanding access to quality digital education for children in refugee camps and marginalized communities. Passionate about achieving quality education for all with a focus on education for sustainable development, Sarah plays a key role in implementing innovative solutions that empower learners with the skills they need to tackle global challenges and thrive in their personal lives. Her work focuses on bridging educational gaps and enhancing the teaching and learning experience for marginal youth through the use of technology.

• https://www.linkedin.com/in/sarah-margono-samsudin-a1b41b99/

Please provide a cost breakdown of the proposed work and resources

1. Offset Provider Evaluation and Selection

• Budget: 20,000 ADA
• Description: Evaluate and select top carbon offset providers based on cost, reputation, and carbon capture effectiveness.
• Breakdown:
• Research and Analysis: 12,000 ADA
• Stakeholder Consultations: 8,000 ADA

2. Emission Tracking System Development

• Budget: 30,000 ADA
• Description: Develop a real-time emission tracking system, leveraging existing data sources and potential Oracle solutions for accuracy.
• Breakdown:
• System Design and Development: 20,000 ADA
• Testing and Quality Assurance: 10,000 ADA

3. Governance Framework Creation

• Budget: 15,000 ADA
• Description: Establish a governance model for the carbon offset initiative, defining roles, responsibilities, and periodic review processes.
• Breakdown:
• Framework Drafting: 10,000 ADA
• Stakeholder Feedback and Revisions: 5,000 ADA

4. Community Engagement and Education

• Budget: 15,000 ADA
• Description: Conduct workshops and outreach initiatives to educate the community on carbon offsets and gather feedback on the proposed system.
• Breakdown:
• Workshop Materials and Coordination: 10,000 ADA
• Promotional and Educational Resources: 5,000 ADA

5. Security Audit and Risk Assessment

• Budget: 10,000 ADA
• Description: Conduct a comprehensive security audit of the systems developed to ensure data integrity and protect against risks.
• Breakdown:
• External Audit: 7,000 ADA
• Risk Mitigation Planning: 3,000 ADA

6. Project Management and Reporting

• Budget: 10,000 ADA
• Description: Oversee project coordination, milestone tracking, and regular reporting to stakeholders throughout the project duration.
• Breakdown:
• Project Management: 7,000 ADA
• Reporting and Documentation: 3,000 ADA

We are exploring unprecedented coordination and collaboration for the mission to make Cardano the Greenest Blockchain in the world, and so we intend to reach out to the entire Cardano community and beyond to make this a reality. By investigating which carbon credit providers and tech builders can enable this vision to be realised, this will inevitably mean there will be some other dependencies that may materialise as we set forth on this enquiry.

How does the cost of the project represent value for money for the Cardano ecosystem?

The total budget of 100,000 ADA represents a strategic investment in positioning Cardano as a leader in blockchain sustainability. This project addresses critical challenges associated with climate change, particularly the need for verified carbon offsets.

1. Cost-Effective Carbon Management: The budget allocates resources to evaluate and select high-quality carbon offset providers, ensuring funds are used efficiently to maximize environmental impact at a competitive cost (estimated between £1,629.55 and £5,014 for 2023).
2. Alignment with Regulatory Standards: With increasing global emphasis on corporate sustainability reporting and environmental accountability, this project positions Cardano to meet evolving regulatory requirements. Implementing a transparent carbon offset system aligns with emerging directives, reducing the risk of non-compliance and enhancing Cardano's legitimacy.
3. Enhanced Reputation: By proactively addressing sustainability, Cardano will enhance its reputation as a responsible blockchain. This differentiation can attract investors, DApp developers, and users focused on sustainable practices, driving ecosystem growth.
4. Community Engagement: The project fosters community involvement through the special interest group, allowing stakeholders to contribute to and benefit from sustainability initiatives. This engagement enhances loyalty and strengthens the Cardano ecosystem.
5. Long-term Financial Benefits: By focusing on sustainability, Cardano can mitigate potential regulatory risks and align with corporate sustainability trends. This strategic positioning can protect and potentially increase the value of ADA over time.
6. Scalability and Future-Proofing: The framework developed in this project can serve as a scalable model for future sustainability initiatives, enabling Cardano to expand its efforts in line with emerging regulatory frameworks without significant additional investment.
7. Demonstration of Innovation: The project showcases Cardano’s commitment to using advanced technology for environmental accountability, reinforcing its message of "Blockchain done right." This innovative approach can attract eco-conscious developers and businesses, positioning Cardano as the go-to platform in a competitive landscape.

The 100,000 ADA investment not only aims to make Cardano the greenest blockchain but also strategically positions it for long-term growth and resilience in a rapidly changing regulatory and environmental landscape.

By aligning with evolving sustainability standards, Cardano enhances its potential for increased adoption and stakeholder trust in the future.