Case Study

Hyphen is a unique MRV provider that uses an atmosphere-based methodology to verify emission reductions. By taking ongoing, precision emission measurements instead of relying on traditional activity-based estimates, Hyphen provides a level of accuracy and trust in emissions data unparalleled in the industry.

Hyphen is a unique MRV provider that uses an atmosphere-based methodology to verify emission reductions. By taking ongoing, precision emission measurements instead of relying on traditional activity-based estimates, Hyphen provides a level of accuracy and trust in emissions data unparalleled in the industry.

Mission

Provide financial incentives that are as compelling as, or better than, those associated with exploiting nature's resources. By opening the books on climate finance, Hyphen aims to reshape financial incentives and create a framework that promotes the protection, improvement, and expansion of our natural world. To achieve this mission, Hyphen uses Hedera’s Guardian technology to create unique digital identities for each sensor within their MRV networks. This creates a fully auditable, tamper-proof and transparent value chain for all data continually being created by multiple sensors. These capabilities empower customers to make a tangible and measurable difference in the fight against climate change while benefiting financially from their sustainability initiatives.

Carbon Project Integrity

The Guardian Ecosystem enables ALLCOT to create a standardized project development framework that fosters trust, transparency and compatibility across all project stakeholders. This ensures the creation of high-integrity projects while maximizing benefits for local communities.
The Guardian Ecosystem facilitates the fulfillment of methodology standards, validation body requirements, project developer needs, and community expectations, thereby enhancing the overall efficiency and transparency of the project

Value chain transparency

ALLCOT stakeholders benefit from access to accurate and comprehensive information on Hedera Guardian’s public ledger, leveraging a common set of rules and standards, fostering trust and accountability. 

Full financial accountability

Transparently demonstrating how project resources are allocated on the public ledger enables ALLCOT’s stakeholders to comprehend the full scope of a project's efforts, flow of funds, and impact.

Equitable revenue distribution

By recording the transaction cost at every stage of a project's progress, resulting carbon credits can be priced to maximize revenue distribution back to the local community.

Accurate and efficient verification

By utilizing Hedera Guardian’s digital ledger, ALLCOT is able to minimize accounting errors, make auditing more open and efficient, and enable a more equitable emergence of verification and validation partners.

Comprehensive monitoring and reporting

The Hedera Guardian Ecosystem establishes a secure chain of data custody, particularly in the case of drone-captured information for origination purposes. This enables ALLCOT to ensure that all project data remains intact, trustworthy and accurately tethered to each project attribute.

Automated reporting compliance

By ensuring that data provided aligns with the necessary frameworks, the Guardian helps meet specific industry needs and standards, while ensuring compliance with multiple reporting requirements.

Future-proof growth

ALLCOT is focused on creating products that surpass the limitations of conventional methods, shifting towards more advanced and efficient approaches to future sustainability markets. 

Single source of truth for interoperability

The Guardian serves as a single source of truth, ensuring that policies and rules are standardized and compatible with other sustainability market actors. This enables ALLCOT to align financing through carbon forwards and the structuring of green bonds seamlessly across various entities within the ecosystem

Common language for communicating benefits

The adoption of a common taxonomy within Guardian enables ALLCOT to establish a standardized language for discussing and addressing various sustainability issues. This fosters better communication and alignment for more effective and cohesive climate action.

Forge new growth pathways

By leveraging the flexibility and adaptability of Guardian, ALLCOT has the ability to provide various pathways for different stakeholders as the sustainability market evolves.

Ecosystem impact

The Hedera Guardian Ecosystem operates as a common good, providing services to the entire ecosystem without an extractive fee-based model. 

ALLCOT leverages the Hedera Guardian Ecosystem to build on and integrate various services and initiatives already established by other community members. This creates an aligned, streamlined ecosystem of sustainability market actors that avoids duplication to serve the needs of communities, investors, and project developers.

High integrity, data driven sustainability markets


Current sustainability markets lack the transparent, concrete data needed to provide verifiable climate finance solutions. Hyphen’s technology driven approach brings trust and transparency to emissions verification, bridging the gap between scientific measurement and private sector initiatives to match environmental claims with measured outcomes. This facilitates more effective environmental policy decisions, efficient auditing processes, and increased trust in sustainability initiatives.

High integrity assets

By using real time, site-specific monitoring networks that leverage state-of-the-art technology to measure emissions, Hyphen offers a highly credible and trusted alternative to traditional activity-based methods. Guardian is used to match monitoring data with a project’s digital ID in real time, providing an accurate, auditable data trail. This provides a fundamental shift from project predictions to the measurement of actual outcomes in any mitigation activity- a game-changer for the sustainability market.

By offering accurate, continuous, and real-time measurements on Guardian, Hyphen streamlines the validation and verification process. This increased efficiency reduces the workload on auditors, ensuring a more cost-effective and reliable auditing process. 

Rewarding high-integrity projects

Hyphen enables the issuance of sustainability assets based on proven emission removal, reduction, or sequestration data. These assets are issued with continuous validation over time, ensuring that they accurately represent the real impact of mitigation activities. These assets will command premium pricing in the market, rewarding projects and initiatives that prioritize accurate and verifiable emissions measurement.

Generate annual Cash Flows

Hyphen can generate annual cash flows for sustainability projects, as credits are issued each year based on actual carbon measurements. This approach provides a consistent revenue stream, instilling trust, integrity, and confidence in buyers interested in acquiring carbon credits.

Rigorous scientific approach

Hyphen’s approach has been refined by over six decades of research and operational experience under the World Meteorological Organization's auspices. By collaborating with multiple scientific bodies, Hyphen is able to marry this expertise with practical applications. Leveraging Guardian ensures that this knowledge sits at the core of emerging DLT powered sustainability markets.

Digitized, open source methodologies

Hyphen makes rigorous and complex methodologies from across sustainability markets accessible. Digitizing and making them open source on Hedera Guardian streamlines the adoption and access for others, encouraging a shift to an atmospheric-based approach to sustainability across the entire ecosystem. Hyphen’s  technology is adaptable to a wide range of systems, including nature-based solutions, agriculture, oil & gas, waste management, allowing for effective monitoring across environments and industries.

Building an efficient ecosystem


Building on Hedera and leveraging the Guardian ecosystem has alleviated many of the common issues faced by companies. As the leading platform for transparent and traceable data sharing and facilitation in the space, building on Hedera has saved a significant amount of development time and seamlessly fits into Hyphen’s technical stack. This has greatly expedited the progress and efficiency of Hyphen’s offering, achieving more at a lower cost and in less time.

Hyphen's dMRV methodology provides near real-time atmospheric GHG measurements, continuously monitoring GHG concentrations and their changes in space and time (fluxes) within a specific region. These techniques have been under continuous development for over 60 years and are backed by extensive scientific literature. “Flux Towers” with IoT sensors will provide the necessary data to support dMRV in near real-time - providing the best available science data quality. This atmospheric monitoring infrastructure features LI-COR eddy covariance systems, with gas analyzers that have been chosen as the global standard by major flux networks for their precision, accuracy, and stability.

To maximize transparency and traceability, all raw IoT sensor data runs in parallel with modeled flux data through the Guardian. A distinctive feature of this process is the direct logging of IoT sensor data onto Hedera before undergoing AI and ML modeling. This approach ensures a transparent audit trail of the final output and modeled data.

Flux monitoring towers measure GHG concentrations every ten seconds, logging raw data onto Hedera while in parallel computing field flux values every 30 minutes. This enables the most accurate measurement of GHG emissions  being sequestered (negative flux) or emitted (positive flux), providing precision daily CDR measurements.

Case study


Hyphen is collaborating with InvestConservation on the Borneo Project in Indonesia, a large-scale conservation project covering more than 100,000 hectares of land. Hyphen’s advanced monitoring and verification services are being applied to ensure accurate and real-time measurement of greenhouse gas emissions and removals in this extensive area. 

The primary goal of this project is to demonstrate the advantages of using Hyphen’s solution to provide accurate validation of carbon credits associated with Nature-Based Solutions (NBS). By using precise and real-time measurement techniques, Hyphen aims to improve the validation process, thus ensuring the integrity of carbon credits linked to NBS activities.

This project stands out as a pioneering large-scale nature-based carbon credit initiative to leverage atmospheric measurements for verification. What makes it even more unique is that Hyphen is collaborating with renowned partners to integrate biodiversity data from within the forest.

This holistic approach not only enables precision measurements of emissions fluxes but also provides a comprehensive framework to assess the relationship between biodiversity and carbon cycles. Additionally, Hyphen has established a value chain of stakeholders, which further contributes to the project's uniqueness and ensures its successful implementation.

The primary beneficiaries
of this project are the local communities, as a substantial 80% of the revenue generated from the carbon credits will be directed towards supporting the local native community. This allocation of funds ensures that the project has a direct and positive impact on the well-being and development of the local population.

This project delivers value to our immediate ecosystem and network by supplying them with high-quality carbon credits that can be sold at premium prices in large volumes. Additionally, since all the data generated by the project is dynamic, it contributes to high volumes of network usage within the web3 ecosystem. This dynamic and high-quality data is a valuable resource for our network partners, enhancing the overall value they receive from the project.

This project delivers value to the broader sustainability market by serving as a compelling example of the advantages of employing scientific methodologies for precision emission measurements. In a climate where environmental claims are under constant scrutiny, this project stands as a beacon for enhanced emissions verification achieved through the application of the best available science. It sets a standard for more accurate and trustworthy emissions data, benefiting the broader sustainability market by improving the integrity and transparency of carbon credit projects.

This project delivers value to the planet by contributing to the restoration and enhancement of biodiversity and natural ecosystems. It does so by reestablishing trust and integrity in carbon markets, ultimately leading to premium pricing for carbon credits. This, in turn, creates stronger financial incentives to protect and enhance nature, rather than exploit it for its resources. By promoting responsible environmental practices and emphasizing the importance of nature conservation, the project aligns with broader planetary sustainability goals.

Hyphen is proud to work with Guardian’s ecosystem of partners: