CARBON CURIOUS?

WHAT IS A CARBON CREDIT?

Carbon credits are a reward given to companies that reduce or remove emissions of carbon dioxide (CO2) and other greenhouse gases. Each carbon credit equates to one metric ton of CO2 reduced or removed, while other greenhouse gases are correlated with CO2 based on the amount of heat they trap in the atmosphere. Once an entity’s climate-friendly practices are verified, carbon credits are issued and can be bought, sold and traded, to leverage the power of markets to combat climate change.

WHY ARE CARBON CREDITS USEFUL?

Carbon credits are a way to connect climate-conscious companies and their emissions with companies that can successfully reduce or remove them from Earth’s atmosphere.
By purchasing carbon credits, it allows a company to reduce or remove emissions they could not otherwise reduce or remove themselves and rewards market participants for regenerative practices.

WHAT IS OUR ROLE?

Our focus is on agriculture-based carbon credits which are especially desirable because of a plant’s natural ability to use photosynthesis to sequester CO2 and the notion of channeling investment in nature to heal the planet.

Frequently Asked Questions

What does PanXchange do? How is PanXchange different from others? How does it work?

The PanXchange business model has 3 core pillars, carbon project development, a carbon removal marketplace, and data-driven advisory for carbon markets. We assist clients in developing carbon projects in less time and cost than traditional competitors by leveraging technology to quantify carbon removals for the purpose of earning carbon credits. From there, we will provide a transparent online platform to allow carbon credits to be sold for the best price the market will bear. In addition, our platform will collect data and allow our team to provide sound analytical and contextual advice to clients as they navigate the carbon market, as we do in the other agricultural markets such as the US hemp market. Our business is unique in that we provide a fully vertically integrated solution and assist clients in all aspects of the carbon market.

How Can I Get Involved with The PanXchange Carbon Program?

How do you ensure PanXchange carbon credits meet the standards of buyers?

PanXchange carbon credits meet the most stringent international standards for quality assurance, including International Organization of Standards (ISO), International Carbon Removal and Offset Alliance (ICROA), and the Voluntary Carbon Standard (VCS), in order to satisfy buyers and command a competitive price point.

Why do you focus on carbon removals vs carbon reductions?

We focus on permanent emissions removals because they are more potent and impactful in addressing climate change than emissions reductions. Greenhouse gas emissions are accumulative, meaning that emissions reductions only slow the rate at which greenhouse gasses build in Earth’s atmosphere, rather than reducing the amount already present. While carbon credits representing emissions reductions are certainly valid and welcomed, our stance is that carbon credits representing permanent emissions removals are in highest demand and command a strong premium in the market.

Why are you starting with agriculture-focused carbon removal projects?

We believe every farm large and small can be deployed to fight climate change. Crops naturally sequester (absorb) atmospheric CO2 through photosynthesis, and the carbon content is utilized as a building material for roots, stems, and leaves. The carbon content also propagates downward from crops into a more permanent storage site in the soils below.  With 51 billion tonnes of CO2 equivalent greenhouse gas emissions annually, we need all the help we can get to achieve global net-zero emissions and related sustainability goals.

What are the rewards of working with us? Why are we cheaper and faster than others?

We leverage innovative methods and technology to help clients develop projects that earn buyer-approved carbon credits as a reward for their eco-friendly practices in less time and at less cost than our competitors. The technology we deploy helps to remotely quantify regenerative practices and their impacts with less need (or no need) to deploy field personnel that adds to time and cost. Also, our methods are intuitive, farmer-friendly, and are geared to prevent administrative and project management backlog as much as possible. PanXchange provides a simple, efficient, and vertically integrated solution that helps clients navigate the carbon market from start to finish.

What are the risks of working with us?

The inherent value of carbon credits is predicated on the data collection and auditing processes used to generate them. Regarding their value, PanXchange carbon credits meet the most stringent international standards for quality assurance, including International Organization of Standards (ISO), International Carbon Removal and Offset Alliance (ICROA), and the Voluntary Carbon Standard (VCS, developed by Verra), in order to satisfy buyers and command a competitive price point. 

Besides the influence of supply and demand (present in all commodity markets), buyers’ familiarity with or preference for more traditional carbon credit programs can affect our carbon credit prices relative to their value. While there is a risk that a PanXchange carbon credit may not sell at as high of a price as a credit from a traditional registry such as Verra, a PanXchange credit can get to this demand-driven market faster and for less investment.

How Do I Get Paid?

You receive cash from a buyer who has purchased the carbon credit on the PanXchange platform. The use of blockchain, a type of distributed ledger technology, allows PanXchange to provide secure transactional records between counterparts (buyers and sellers) and to avoid “double selling” of carbon credits.

How do I know if carbon removal projects are realistic for me?

To find out if a carbon removal project is right for you, a logical first step would be to contact PanXchange. We will then try to find a methodology to generate carbon credits that matches your profile. If we do not have one, we may suggest a different provider, or (if economically feasible) work with you to develop one that is tailored to your business. PanXchange conducts economic feasibility studies with clients prior to engaging in projects to promote transparency and trust while assisting clients from start to finish.

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How do crops (such as industrial hemp) connect to carbon?

We believe every farm can be deployed to fight climate change. Crops naturally sequester (absorb) atmospheric CO2 through photosynthesis, and the carbon content is utilized as building material for roots, stems, and leaves. The carbon content also propagates downward from crops into a more permanent storage site in the soils below.  While most crops are consumed and digested with temporarily stored CO2 released as a result, some crops such as industrial hemp provide a more stable, permanent storage site for CO2. For example, industrial hemp can be used as an input for hemp-based concrete, thus holding CO2 in a highly stable building material for the long term.

What happens when land changes hands or a farmer changes practices?

Before undertaking a carbon removal (or reduction) project, it is a requirement that a contract is in place between the landowner and project developer, outlining a legally binding commitment to not undertake actions that would reverse carbon removals that were already rewarded with carbon credits. 

If a project and the land it is situated on changes hands, the legally binding commitments regarding the original carbon removal project remain attached to it. If the project is enrolled by someone other than the landowner on record, permission has to be granted by the landowner on record to a legally designated proxy.

What Happens If I Change Practices ? What If I Release My Removed Carbon Before the End of My Project?

The PanXchange Carbon program does not bind clients to specific practices, so long as the clients’ chosen practices lead to additional CO2 removal relative to an established baseline. While some processes may release CO2, the net removal of CO2 from the atmosphere into soil and/or plant material is what is used to award farmers with carbon credits.

However, in the event of a reversal , or a carbon removal that has been verified and counted toward a carbon credit that was subsequently re-introduced back into the atmosphere, the farmer will be legally and financially liable for making the buyer(s)’ purchase whole.

Why Can’t I Verify My Own Credits?

Qualified, independent third-party verification is essential in order to maintain the integrity of carbon credits. By verifying its own credits, an entity would be incentivized to be less conservative in quantifying the amount of greenhouse gasses reductions or removals emanating from a project, and this would present a conflict of interest.

How Do You Know How Much Carbon A Supplier Has Removed?

PanXchange partners with two companies (Soil Metrics and Cloud Agronomics) that developed tools that quantify carbon removals from cropland projects. These companies’ tools were developed with rigorous scientific backing and receive ongoing support from the US Department of Agriculture, EPA and private sponsors such as Microsoft. The models work either by comparing farmers’ new sustainable practices to their previous farming methods in the case of Soil Metrics, or by remotely observing their farm via remote sensing and satellite imagery in the case of Cloud Agronomics. 

How Can I Trust that Carbon Removals are Real?

PanXchange works with qualified, independent, third-party verifiers with experience and accreditation working on carbon removal projects. Farmers are paired with a verifier to review their carbon removal data and supply any supplemental evidence required. The verifier then submits a report of their findings to PanXchange. When sold, every certificate of carbon removal will be attached with a copy of the verification report.

Is Over-issuance of Carbon Credits and "Greenwashing" a concern?

All voluntary carbon registries are acutely aware of the issue of greenwashing. As a result, we practice the principle of conservativeness when quantifying and issuing carbon credits to avoid greenwashing. Our carbon project methodologies are assessed against stringent global standards, and carbon projects themselves are verified by qualified, independent third-parties to provide assurance that no over-issuance of carbon credits or greenwashing has occurred.

How is Data Privacy Maintained?

Private data will not be used or shared without the expressed permission of the client. See PanXchange’s privacy policy for more details.

What will I get for purchasing carbon removals?

You will receive a digital certificate of ownership for the carbon removals you paid for. This certificate will show the amount of carbon removals, the farmer and fields where the carbon was stored, and any additional information provided by the farm. All these records are registered permanently on a distributed ledger, so you will always have proof of your purchase and the assurance that the seller has not sold the same certificate more than once.

Where does my money go?

100% of each metric ton you pay for goes directly to supporting our suppliers (farmers), while PanXchange collects a 15% transaction fee from the buyer.. This not only rewards farmers for implementing sustainable farming practices, but further incentivizes sustainable farming in the future.

Do you offer refunds?

We do not.

Can I purchase a carbon credit for someone else?

Yes. The owner of the credit will be designated at the point of purchase, and the owner of the credit does not necessarily have to be the final purchaser. This is made possible by a distributed ledger system, which presents a permanent and secure record of carbon credit ownership, transfer of ownership and retirement of carbon credits.

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