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We at KWOTA strive for transparency
Dive into the documents and other resources to fully understand our business processes
Frequently Asked Questions
We are happy to answer any questions you may have, but first check to see if your question has already been answered here.
How does the use of secondary materials save CO₂?
CO₂ emissions are reduced if we replace the primary raw material with secondary materials. When secondary material is used as an industrial input, for example, in the paper and board industry, CO₂ emissions are reduced by up to 40% on average.
Who audited KWOTA Standard and processes?
KWOTA Standard and verification process were successfully audited by KPMG Baltics OÜ in autumn 2022. The audit report includes the assessment of KWOTA processes’ compliance with the KWOTA Standard and greenhouse gas removal calculation methodology compliance to standard ISO 14064:2019. Greenhouse gas reduction and carbon credits calculation analysis was carried out in cooperation with KPMG and Nomine Consult OÜ, which is the only EVS-EN ISO 14065 accredited verifier in Estonia.
How do you guarantee that a product incorporates recycled material?
Every tonne of secondary material used in a product gets a unique digital footprint. Thanks to enhanced transparency, KWOTA can ensure that we create carbon credits based only on CO₂ reduction quantities that have reached production.
What is double-counting?
Double-counting is any situation in which the same GHG emission reduction or carbon dioxide removal is counted, claimed, or credited more than once. Double-counting includes double issuance, double use, and double claiming. Double issuance is any situation in which the same GHG emission reduction or carbon dioxide removal is credited by two or more projects, or through two or more GHG programs. To avoid double issuance of credits, Producers have to confirm that they have not signed or are going to sign an agreement with another carbon crediting service provider and/or platform to issue credits for the same GHG reduction project. KWOTA has added this as a separate paragraph in its Terms of Service agreement, which is obligatory for all Producers. Double use is any situation where a GHG emission reduction or carbon dioxide removal or GHG-related benefit is further sold, transferred, retired, used, or canceled after having already been retired or used. To avoid double use of credits, KWOTA will retire sold credits immediately on behalf of the credit buyer and record it in the public KWOTA registry. Double claiming is any situation in which the same GHG emission reduction or carbon dioxide removal is credited or claimed by more than one entity towards separate mitigation targets or emissions inventories. Double claiming includes when a GHG emission reduction or carbon dioxide removal is credited under a GHG crediting program and the same emission reductions and removals or GHG-related benefits are also credited or claimed under an emission trading program, binding emissions limit, or GHG-related environmental credit system. To avoid double claiming, KWOTA has taken an approach of contribution claims and supporting mitigation activities beyond the value chain using the guidance of the Science Based Target Initiative (SBTi) and Oxford Offsetting Principles.
Is CO₂ reduction trustworthy?
At KWOTA, we have developed a verification process to accurately measure and verify the quantity, quality, and origin (collection, transportation, and manufacturer) of the secondary material moving to the production facility. KWOTA CO₂ reduction figures are based on the verified flow of secondary materials input to production. Calculations are conservative and science-based, following the KWOTA Standard, and audited by a third party.
How does KWOTA ensure no double counting?
KWOTA has implemented several measures to ensure the prevention of double-counting or double-selling of CO₂ savings: 1. Credit Creation and Tracking: KWOTA generates carbon credits exclusively for verified additional CO₂ savings, and each carbon credit is meticulously recorded in the KWOTA registry with a unique serial number. 2. Material Producer's Confirmation: Before carbon credits are issued, the material producer must confirm that these CO₂ savings have not been directly or indirectly listed for sale elsewhere or already sold through other registries or carbon markets. 3. Immediate Retirement: When a company purchases KWOTA carbon credits, they are promptly retired and marked as such in the registry. This immediate retirement eliminates any chance of double-counting and prevents any potential reselling or double-claiming. KWOTA carbon credits can only be sold once. 4. Restrictions on Use: Companies that voluntarily acquire carbon credits from KWOTA are restricted from deducting these CO₂ savings from their own carbon footprint or making claims such as "carbon-neutral" or "emission-free" for themselves or their products. They can use the carbon credits as additional mitigation activities or climate finance beyond their value chain. 5. KWOTA carbon credits are not designed for offsetting: they represent contribution claims, aligning with best practices recommended by SBTi (Science-Based Targets initiative) and Oxford Offsetting Principles. Consequently, companies must maintain transparency regarding their own carbon footprint and communicate KWOTA carbon credits solely as an additional, voluntary contribution to climate action and the circular economy. These practices also align with the EU's Green Claims Directive, which emphasizes transparency in reporting and prohibits offsetting.
Shouldn’t CO₂ removal credits be the preferred option?
At KWOTA, we believe that prevention is the best solution to any problem. Science-based assessments tell us that only investing in CO₂ removal credits will not keep us on the 1.5-degree course stipulated by the Paris Agreement. Firstly, significant investment in activities that reduce CO₂ emissions is necessary. Our CO₂ reduction is accurate, verifiable, and cannot be reversed.
What type of claims are ok to make?
KWOTA is against any double-counting, double-claiming and greenwashing. Therefore we have prepared a simple and short list of main principles regarding claims for our customers: 1. monitor and evaluate regularly your company’s or products’ carbon footprint and find ways to make it more circular and climate-friendly; 2. be transparent and honest in communicating about your products, sustainability, social values, governance and carbon footprint, and in making environmental claims; 3. don’t just set long-term goals and wait for the technology or silver bullet, instead take immediate action today and contribute to as many SDGs as possible; 4. do not hide or offset your carbon footprint, instead find ways to reduce it efficiently and use KWOTA tokens for additional contribution or compensation that goes beyond your own value chain; 5. report clearly and openly about your own carbon footprint, progress towards net-zero and additional contributions and actions such as contributing to circularity via KWOTA tokens.
How does KWOTA avoid double counting?
We have eliminated the possibility of double counting. KWOTA creates tokens based on actual data, each with a unique serial number. Each KWOTA token represents at least one gram of CO₂ reduction and is retired upon sale, preventing double-counting.
There is no uniform standard for measuring and validating CO₂ reductions.
KWOTA has created a global standard for digital verification of CO₂ reduction from material recycling. We can offer a reliable service operating on the same basis throughout the world.
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