A carbon credit is a tradable certificate representing the reduction or removal of one metric ton of carbon dioxide (CO₂) or equivalent greenhouse gases from the atmosphere. These credits are created through projects that protect forests, invest in renewable energy, or engage in practices that reduce emissions.

Market Participants

Issuers (Producers): Entities (like Oxygen) that develop projects to generate carbon credits, usually through forest conservation, reforestation, renewable energy, or similar eco-friendly projects.

Certifiers/Validators: Organizations (e.g., Verra, Gold Standard) verifying and certifying that the emissions reductions are real, measurable, and permanent.

Buyers (End Users): Typically corporations seeking to offset their emissions to achieve regulatory compliance, meet sustainability goals, or enhance their brand image.

Marketplaces/Brokers: Platforms (like ClimateTrade, Pachama) where carbon credits are listed, bought, and sold.

How Carbon Credit Issuers Make Money

Issuers earn revenue by:

• Creating and Certifying Credits: Developing projects that verifiably reduce emissions.
• Selling Credits: Once verified, credits are sold to buyers through marketplaces, generating revenue based on market demand and prices.
• Long-Term Management: Continued project management and sustainability practices ensure steady, recurring credit generation and revenue streams.

Why companies buy Credits?

A. Regulatory Compliance and Avoiding Penalties: In many regions globally, companies are required by law to limit or offset their greenhouse gas emissions. Buying credits is usually much cheaper than paying fines or facing operational shutdowns.

B. Market Competitiveness and Brand Differentiation: Modern consumers prefer brands that demonstrate environmental responsibility. Carbon-neutral brands can charge more, retain loyalty, and grow market share.

C. Access to Capital and Investor Preference: ESG-focused investors and institutions favor companies aligned with sustainability. Carbon-neutral businesses enjoy better funding access and lower borrowing costs.

Financial institutions and investors increasingly favor companies aligned with sustainability (ESG criteria). Businesses demonstrating carbon neutrality through purchased credits have better access to funding, attract ESG-conscious investors, and enjoy lower borrowing costs compared to competitors who don’t prioritize sustainability.

In short, companies buy carbon credits because doing so reduces compliance costs, enhances market positioning, and opens doors to cheaper capital and investment opportunities. It's economically strategic—not merely altruistic.

Mission: Oxygen democratizes investment in the production of carbon credits through blockchain-based tokenization, transforming environmental efforts into profitable, transparent, and accessible investments.

Problem: Forests around the world are (mostly illegally) burned to clear land for agriculture or cattle—not because it's profitable, but because there are few ways to monetize a healthy forest. The carbon credit market solves this, but it's inaccessible to most due to high entry barriers, benefiting only large investors. Greenwashing due to poor oversight further reduces trust. Meanwhile, traditional donations lack funds and transparency.

The global carbon credit market is rapidly expanding, driven by international climate goals, corporate sustainability commitments, and growing regulatory requirements.

An industry where 72% of credits issued are sold, while production is declining and retirements (demand) are increasing. In 2024, 264 million credits were issued and 196 million sold. Demand for high-quality, verified credits is outpacing supply, especially due to stricter environmental policies.

Latin America presents a unique opportunity: low-cost, high-impact carbon credit generation due to vast forest reserves. Many landowners prefer this path over destructive practices like deforestation or cattle ranching.

Key Insights:

• High entry barriers (~$150,000 in certification costs) limit access for smaller players.
• Latin American forests offer cost-effective, high-return investments.
• The region is still early in adoption, offering first-mover advantages.
• Strong profitability potential as demand continues to grow.

The Oxygen ecosystem is built on two core tokens:

• $OM (Oxygen Meters): Represents real square meters of protected forest. Investors purchase $OM to acquire and protect specific land areas.
• $OC (Oxygen Conservation): Earned over time by $OM holders. Each $OC represents 1 kg of CO₂ captured and can include other ecosystem services in the future.

Token holders can choose to:

• Trade $OC tokens on the market for profit.
• Burn $OC tokens to certify their own carbon neutrality.

Carbon neutrality verification is handled differently depending on the user:

• Individuals: Use a guided questionnaire to determine their footprint and burn $OC accordingly.
• Companies: Undergo a tailored audit by Oxygen and its collaborators to issue formal carbon certificates.

Oxygen’s business model is structured around crowdfunding, carbon credit monetization, and long-term ecosystem service valuation.

Initial Funding

• Target: $350,000 USD to cover operational costs and certification fees for the first project.
• Raised through the sale of $OM tokens, representing forest land ownership.

Revenue Generation

• The first project alone (La Florencia, 30,000 ha) is projected to generate a minimum of $2.8M USD over 10 years.
• Investor ROI is projected at ~7% annually, based on selling 63.79 million m² at $0.0055/m² to raise the initial funds.
• Once certified by standards such as Verra, Gold Standard, or Pachama, the carbon credits are sold through established marketplaces.

Each new project will follow this model, requiring a new funding round and generating new tradable carbon credits.

• The forest land is already secured by Oxygen Token shareholders, ensuring legal control and ownership transparency.
• All certification will be conducted through Verra under the REDD+ standards (Reducing Emissions from Deforestation and Forest Degradation), a globally recognized framework.
• Projects aim to receive additional labels such as CCB (Climate, Community & Biodiversity), which increase the market value of the credits due to their verified environmental and social impact.

This multi-certification approach enhances the credibility, tradability, and profitability of the carbon credits generated, while aligning with top-tier ESG investment principles.