Use Cases and Value Proposition
Klima Protocol provides a blockchain-based capital system purpose-built for carbon markets.
At its core, Klima Protocol exists to serve two foundational objectives:
Transparent carbon pricing – so that project developers are not undersold and buyers access the market efficiently with verifiable, real-time pricing.
Access to carbon markets – by abstracting away fragmentation, intermediaries, and complexity, Klima serves as a decentralized counterparty for both buyers and sellers, making climate action programmable and accessible at scale.
Value Proposition
Carbon Market Infrastructure
Klima Protocol serves as a capital, liquidity, and execution layer for tokenized carbon markets. It introduces a formal mechanism for:
Onchain carbon asset pricing based on collective governance and market signals;
Frictionless market access – instant settlement, token-based capital flows, and self-custody trading of carbon assets;
Smart contract execution that eliminates intermediaries, reduces overhead, and enables capital-efficient operations across carbon supply and demand;
24/7 carbon index (ETF) that allows economic actors to be exposed to the spot and forwards (ex-ante) carbon markets.
Utility Layer for Tokenized Carbon
Klima 2.0 is designed for composability. It allows stakeholders to directly interface with the protocol across multiple functions:
Governance: Token holders vote on which carbon classes are supported and how they’re weighted in the portfolio;
Liquidity provisioning: Stakeholders contribute capital to carbon-backed liquidity pools and receive dynamic yield based on system parameters;
Programmable infrastructure: Developers and integrators can leverage Klima’s smart contracts, Retirement Aggregator, and retirement tools to build carbon-enabled products and services.
These components form an infrastructure and economic layer that transforms how capital and carbon interact, turning passive carbon exposure into an actively governed, yield-generating market structure.
Diverse Ecosystem of Carbon Market Actors
Klima 2.0 is designed to serve a diverse ecosystem of carbon market actors: each with their incentives, infrastructure needs, and touchpoints with the protocol. This guide helps map user types to the protocol’s features and value.
Core Users: Who We Serve
Other Strategic Participants:
Core Users
Project Developers
Why?
Monetize carbon credits transparently and efficiently.
What?
Sell spot and forward carbon credits to the Klima Portfolio. Participate in governance via whitelisting.
How?
List credits through Klima Protocol’s App or API and receive tokenized consideration. Vote with $kVCM / $K2 to shape market preferences.
Traders / Wholesalers
Why?
Acquire or liquidate carbon as part of their operations.
What?
Use Klima Protocol as a counterparty for carbon credit supply
Access liquidity, priced in real-time, to service customer retirement demand without taking inventory risk on their books.
How?
By selling carbon to the protocol via Klima Protocol’s App, or using $kVCM to acquire carbon credit retirements.
Carbon Retailers
Why?
Access a diverse, liquid carbon supply without inventory risk.
What?
Source real-time retirements using Klima’s Retirement Aggregator. Integrate pricing and proof into retail flows.
How?
Directly integrating with Klima Protocol via its smart contracts.
Other Strategic Participants
Corporate Buyers (SMEs to Large Enterprises)
Why?
Efficient access to transparently priced carbon credits in service of ESG objectives.
What?
Directly access carbon credits to service their Scope 1, 2, and 3 carbon footprints.
Have confidence and trust around carbon credit pricing, with reduced market intermediation.
Access diverse carbon credit types, defined with Klima’s carbon classes.
How?
Through the Klima UI, by retiring carbon credits with the $K2 token.
Institutions – Carbon Sector
Why?
Influence the Klima Protocol
What?
Utilise the Protocol as a tool for influence over the carbon markets, by influencing carbon pricing and supply;
Access transparent Protocol data to understand carbon credit pricing and retirement trends, and understand the VCM userbase;
As appropriate, influence the Protocol’s carbon pricing and supply by participating in governance.
How?
Accessing data dashboards, as appropriate, and interacting with Protocol via its UI.
Institutions – Financial / ESG Investors
Why?
Direct participation in the RWA, in both passive and direct ways.
What?
Active:
Participate directly in Klima Protocol’s carbon economy
Provide liquidity within Klima’s liquidity pools.
Passive:
Acquire $kVCM and $K2 tokens as part of their general strategies.
How?
Via the secondary market, by utilising $kVCM or $K2 positions via the Klima Protocol UI.
DeFi Protocols & DAOs
Why?
Build climate-aligned onchain strategies. What?
Offset protocol or community activities.
Utilise carbon as collateral for their strategies.
Build sustainable DeFi solutions using Klima primitives
How?
With Klima’s staking contracts, LP positions, and treasury-compatible allocation flows.
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