Climate Finance Framework

B. Carbon Credit Categories

B.1 Avoided Emissions – Agricultural Burning Avoidance

Baseline scenario:
Open-field burning of rice straw and sugarcane leaves after harvest, which is a dominant contributor to PM2.5 and seasonal GHG emissions in Northeast Thailand.

Project activity:
Collection, aggregation, and productive utilization of biomass as fuel and compost feedstock.

Carbon impact characteristics:

• Immediate, measurable, and verifiable emission avoidance

• Strong alignment with air-quality and public-health objectives

• High policy relevance at provincial and national levels

Indicative emission factor (conservative):
≈ 1.6 tCO₂e per tonne of biomass avoided from burning

B.2 Energy Transition – Renewable Electricity Generation

Baseline scenario:
Electricity supplied from Thailand’s fossil-dominated grid mix.

Project activity:
Dispatchable biomass power plants supplying firm renewable electricity under long-term PPAs.

Carbon impact characteristics:

• Direct Scope 2 displacement for industrial and grid offtakers

• High suitability for corporate decarbonization buyers

• Stable, long-term credit generation profile

Reference grid emission factor:
≈ 0.55 tCO₂e per MWh (Thailand grid, conservative)

B.3 Carbon Removal – Soil Carbon & Circular Agriculture

Baseline scenario:
Low organic matter soils with reliance on synthetic fertilizers.

Project activity:
Application of certified organic compost produced from agricultural residues.

Carbon impact characteristics:

• Long-term carbon sequestration in soils

• Additional co-benefits: yield stability, water retention, fertilizer reduction

• Strong alignment with Scope 3 reduction strategies for agri-food companies

Carbon credit type:

• Soil organic carbon (SOC) enhancement

• Potential integration with carbon removal registries (subject to MRV maturity)

C. Quantified Carbon Impact (Khon Kaen Province)

Annual Carbon Impact Summary

Source Estimated Impact

Avoided open burning ~2.33 million tCO₂e / year

Renewable electricity displacement Included conservatively in above (non-double counted)

Soil carbon & fertilizer substitution Additional upside (not included in base case)

Note: Base-case carbon volumes intentionally exclude soil carbon upside to maintain conservative investor assumptions. 

D. Carbon Standards & Market Pathways

The platform is designed to remain standards-agnostic but compliance-ready, enabling flexibility across markets:

D.1 Domestic & Regional Standards

• Thailand T-VER (for domestic compliance and public-sector alignment)

• Potential bilateral cooperation mechanisms under Article 6.2

D.2 International Voluntary Markets

• Verra (VCS) – Avoided burning & energy methodologies

• Gold Standard – Energy access, clean air, SDG-linked credits

• High-integrity removal registries for soil carbon (phased)

E. MRV (Measurement, Reporting & Verification) Framework

The platform integrates digital MRV by design, not as an afterthought.

Key MRV Elements:

• Farm-level biomass origin tracking

• GPS-tagged collection and warehouse logs

• Power plant fuel input and electricity output monitoring

• Compost production, distribution, and application records

• Remote sensing & satellite verification for burn-avoidance claims

This enables:

• Audit-ready datasets

• Compatibility with third-party verifiers

• Future integration with blockchain-based registries if required

F. Carbon Revenue Strategy

Carbon revenues are treated as upside value, not required for base-case project bankability.

Use of Carbon Revenue:

• Improve project IRR and DSCR

• Support concessional pricing for farmers

• Fund MRV and digital infrastructure

• Enable blended-finance structures with DFIs

Buyers Targeted:

• Industrial Scope 3 emitters

• RE100 and clean-air aligned corporates

• ESG-driven infrastructure funds

• Sovereign and sub-sovereign climate programs

G. Climate Finance Alignment

The Khon Kaen platform aligns with major climate-finance principles:

• Paris Agreement / NDC alignment

• SDGs: 7, 11, 12, 13, 15

• Just Transition: rural income, community participation

• Blended Finance: senior debt, concessional capital, carbon upside

The modular cluster structure allows:

• Phased deployment

• Province-level aggregation for large ticket financing

• Replication across Thailand and ASEAN

H. Risk Management & Integrity

• Conservative baselines

• No double counting between energy and burning avoidance

• Clear ownership of carbon rights via project SPVs

• Long-term feedstock agreements with community enterprises

• Independent third-party verification

I. Strategic Value for Investors

This platform offers investors:

• Large-scale, real-economy decarbonization

• High environmental additionality

• Strong policy tailwinds (PM2.5, clean air, rural development)

• Optionality across carbon markets without dependency risk