Overview of the Open Forest Protocol (OFP)
As of September 16, 2024, more than 190 projects have been successfully registered under the Open Forest Protocol (OFP). Operating on a global scale, OFP spans six continents, offering a unique platform where project registration and verification are completely free of charge.
Eligibility Criteria for Projects:
- Projects eligible for OFP include Afforestation & Reforestation (A/R) and, in certain cases, Agroforestry initiatives.
- Project size must be a minimum of 3 hectares (7 acres).
- Projects must not be listed or seeking registration under any other carbon or greenhouse gas programs except OFP.
- The project site must not have experienced deforestation within the 10 years prior to the project start date.
- Projects must have a minimum duration of 40 years.
- The project developer must have rights to both the land and the carbon credits throughout the crediting period, either through direct ownership or agreements with the landowner.
- Projects involving existing forests, as defined by the Designated National Authority (DNA), are not eligible. As a general rule, project sites should not have tree canopy cover exceeding 10%.
- Timber harvesting is prohibited.
- Projects initiated within the past five years may still qualify if they can demonstrate that carbon financing was considered critical for the long-term sustainability of the forest.
- The project must not be legally obligated to plant or reforest.
- The project should not be economically viable without carbon financing.
- Projects must include the planting of at least 3-5 different tree species, as monoculture plantations are not eligible.
- Native species must be used, with relatively uniform distribution across the project area.
Once eligibility is confirmed and an introductory call with the OFP officer for the specific region is completed, the onboarding process can commence.
Steps to Register with the Open Forest Protocol:
- Organization Registration:
The first step involves the approval of the project developer’s organization to use OFP for potential carbon credit generation. - Project Registration and Whitelisting:
Project developers must create a digital profile for each forest project through the Project Operator Dashboard, providing all necessary project information and applying for carbon accreditation. - Monitoring:
Once registered, the project area must undergo regular monitoring. Ground data is collected from circular sample plots randomly distributed across monitoring zones. These permanent plots are revisited over the project’s lifecycle. Monitoring takes place every six months for the first two years, then annually. Data is collected using the Forest App, and local communities, alongside project developers, can participate in the process. Thanks to blockchain technology, all monitoring data is secure and immutable, though project developers can add supplementary information if needed. - Verification and Validation:
After monitoring data is submitted, it is reviewed and verified by at least 12 independent entities from OFP’s network of verification partners. Decisions are made using tokens, ensuring a transparent and decentralized process. - Credit Issuance:
Once verification is complete, carbon credits are automatically issued. Projects retain 85% of the credits, stored in a digital wallet. The token owner can sell, transfer, or retire them. Upon retirement of Open Carbon Credits (OCCs), retirement certificates are automatically generated as non-fungible tokens (NFTs) and stored in the user’s wallet. These certificates are shareable and publicly verifiable. The remaining 8% of credits are allocated to a protocol-wide pool, distributed among ecosystem participants holding OPN tokens. An additional 7% of credits are contributed to a buffer pool, per the ARR methodology (version 1.1), to ensure credit integrity and manage risks.
OFP Tools and Platforms:
OFP offers several tools to streamline project management and verification:
- Project Operator Dashboard: A web-based platform for registering and managing forest projects.
- Forester Mobile App: A mobile app available for data collection, even offline, that syncs with the Project Operator Dashboard for real-time updates.
- Validation Dashboard: A platform for validators to assess and vote on the legitimacy of project data.
- Atlas: An interactive public map displaying all project data as immutable public records.
OFP currently utilizes the Afforestation/Reforestation/Revegetation (ARR) methodology (version 1.1) for carbon credit generation. The marketplace is set to launch soon, providing developers with a platform to trade their carbon credits.
Why the Open Forest Protocol is Important for Moldova:
In Moldova, launching a climate project can be challenging due to both organizational and financial hurdles. Project initiators must carefully plan the project process, identify contractors, and engage validators and verifiers. Additionally, funding is required to execute the project. Even after successful completion, the next task is to recover the investment and sell the carbon credits generated.
The Open Forest Protocol helps address these challenges by assuming most of the organizational and financial burdens. This allows project developers to focus on actual project implementation while OFP takes care of validation, verification, and credit issuance. By utilizing OFP, Moldovan projects can streamline their operations, ensuring they are in compliance with international standards and can successfully enter the carbon market.
