City Forest Credits Sets National Standards for Urban Tree Carbon Removal

Klima Protocol completed its first 90-day kVCM time-lock cycle, revealing strong user commitment to the carbon credit platform. **Key Results:** - 4.94M kVCM tokens unlocked at cycle end - 75% of unlocking wallets chose to re-lock their tokens - 5.22M kVCM now committed to new locks - Net increase of 273k kVCM locked since rollover The protocol uses 90-day lock cycles where users can lock kVCM tokens to govern the protocol and receive incentive distributions. At expiry, users choose to exit or renew their commitment. To address initial maturity clustering, Klima Foundation offered a one-time 250,000 K2 token bonus for users rolling over, distributed pro-rata based on lock size. The bonus activated once 4M kVCM was locked. Recent protocol updates include carbon retirement bot integration with azUSD and cbBTC, and API v19 enabling Base network access to Klima's carbon liquidity through Carbonmark.

Klima has integrated its API with Carbonmark to streamline carbon credit procurement and retirement processes. The integration enables developers to build programmatic flows for carbon credit transactions, with settlement, retirement, and traceability managed automatically through smart contracts. **Key Features:** - Direct API access for carbon credit procurement and retirement - Deterministic contract-level settlement and traceability - Built on [Base](https://base.org) network for real-world asset management The integration extends Klima's mission to reduce friction between carbon credit suppliers and buyers, making verified carbon retirements more accessible through transparent, rules-based infrastructure.

Klima 2.0 outlines five distinct participant categories for its carbon market infrastructure: **Carbon suppliers** (project developers and traders) receive a predictable, rules-based route to market with clear execution terms and no opaque spreads. **Carbon buyers** access verified retirements with transparent pricing. Credits cannot be resold—retirement is permanent, ensuring environmental claims remain auditable. **Coordinators** (kVCM and K2 participants) signal preferences that shape execution conditions within fixed bounds, enabling distributed decision-making without centralized control. **Liquidity providers** maintain continuous protocol access through open markets, ensuring reliable entry and exit without embedding carbon in automated market makers. **Builders and integrators** can develop against open-source smart contracts and APIs to embed carbon functionality into workflows. All groups operate under identical rules. The system aims to coordinate different interests without collapsing them into a single financial abstraction.

**Klima Foundation announces strategic partnership with Regen Network** through the Klima Partnership Program to advance digital carbon market infrastructure. **Key developments:** - New carbon class launching on Klima platform featuring City Forest Credits - Regen Network brings blockchain-based ecological verification expertise - Partnership focuses on digital MRV, registry interoperability, and carbon asset innovation **Technical integration includes:** - Seamless data integrations for cross-chain retirement and tracking - Advanced standards for on-chain issuance and transfers - Enhanced access to high-quality urban forest credits The collaboration combines Regen's technical capabilities with City Forest Credits' high-impact credits to create **scalable, transparent climate finance tools**. This partnership represents a significant step toward building trusted digital infrastructure for carbon markets.

A landmark transaction saw **over 31,000 metric tons of City Forest Credits (CFC) sold for more than $1 million**, with prices ranging from **$34-45 per ton**. This pricing significantly exceeds average voluntary carbon market rates, demonstrating strong demand for urban nature-based climate solutions. **Key highlights:** - City Forest Credits focuses on urban tree planting and preservation - Credits deliver verifiable carbon removals plus co-benefits - Additional benefits include improved air quality, reduced stormwater runoff, and energy savings - Solutions directly impact 80% of Americans living in urban areas The transaction showcases the **immense potential of urban forestry** for both climate impact and community benefits, setting new benchmarks for nature-based carbon credit pricing.