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THe CArbon reserve functions an independent foundation providing market infrastructure to open up carbon markets to global communities and help accelerate the demand for decarbonisation
Growing an inclusive, transparent, and effective carbon mitigation economy
We believe a global currency backed by carbon mitigation assets held by the Carbon Reserve, can grow an effective carbon mitigation economy. Through market operations the Carbon Reserve aimed to support carbon prices, manage liquidity, reduce volatility, and ensure that price increases happen in an economically responsible manner. This aimed to have the following benefits:
Increased market participation
Individuals and organisations were able purchase and conduct transactions in the toco currency. This broadened the existing market and drove global participation.
Reduced fragmentation
The Carbon Reserve linked previously disparate jurisdictions through a single global currency.
Increased fungibility
Because the currency is backed by a pool of reserves, the heterogenous carbon assets are made fungible and can act as a universal unit of trade.
Improved transparency
Through the application of blockchain technology, transparency, accounting, and asset quality are improved, while the potential for fraud and other criminal activities is eliminated.
to provide global citizens and corporations with a safe, flexible, and stable monetary system that enables and supports credible atmospheric carbon reduction
The Carbon Reserve implements monetary policy to achieve its dual mandate:
Expand the money supply responsibly in such a manner that it contributes to achieving the CO2e concentration pathway recommended by the Intergovernmental Panel on Climate Change (IPCC).
Fulfil this mandate in such a manner that the carbon mitigation value of its currency, measured in mitigated tonnes of carbon dioxide equivalent, is achieved and maintained.
Our purpose is to provide global citizens and corporations with a safe, flexible, and stable monetary system that enables and supports credible atmospheric carbon reduction.
The functions of the Carbon Reserve
Set and conduct monetary policy
We operate in the voluntary carbon market to target atmospheric carbon reduction (in line with IPCC recommendations) and maintain the mitigation amount represented by tocos in circulation.
Ensure an efficient and safe payment system
We provide a safe, efficient, and accessible system for recording assets and conducting toco transactions.
Drive carbon market stability
We monitor carbon mitigation market risks and engage with participants to help ensure the market supports carbon reduction in line with IPCC recommendations.
Champion public protection
We regulate participants in the blockchain system for compliance and ensure that the Reserve’s operations and assets are transparent and verifiable to the public.
Ensure accurate mitigation value assessment
We engage with originators, verification-and-monitoring agencies, registries, dealers, and rating agencies from across jurisdictions to provide transparent and accurate carbon asset ratings and assessments.
Manage a portfolio of assets
We manage the currency and CMA reserves. The level of our reserves is largely dictated by the implementation of monetary policy.
Foundation overview
The founders of the Carbon Reserve intentionally chose the legal structure of a foundation to ensure the toco initiative’s independence, trustworthiness, and transparency.
1 Place de Longemalle
1204 Geneva
Switzerland
1. As an independent legal entity the Foundation has sole ownership of its assets, which are managed under a strict mandate for the sole benefit of the toco economy. It operates free from external interest, interference, influence or profit motives.
2. The Foundation adheres to a strict mandate and operates within a set of predetermined organizational rules and guidelines that are publicly available for anyone to review.
3. The Foundation’s operating principles and mandate are subject to supervision and oversight by the Swiss supervisory authority.
4. The Foundation is set up for the benefit of the general public and not its founders. It is a non-profit and operates chiefly to achieve the environmental goals outlined in its founding documents.
5. The Foundation's Board of Governors are responsible for setting monetary policy and ensuring that the Carbon Reserve operates in line with its purpose.
Governing principles
The key principles that guide the operations, management, and oversight of the Carbon Reserve include:
To ensure the success of the toco initiative, the integrity of the Carbon Reserve cannot be compromised by external interests, influences, or profit motives. The Carbon Reserve owns its assets. These assets do not belong to any one person and can only be managed for the benefit of the toco economy.
Transparency is key to independent and responsible governance. Because we use blockchain technology to record all asset and currency transactions, it is possible for any third party to verify and audit both the assets held in the Carbon Reserve and the total tocos in circulation.
We believe in the ongoing stability of national currencies; in safe, secure, and stable banking systems and in strong consumer protections. The Carbon Reserve will continually work with policymakers as the financial network expands and as regulations change.