THE economic Model
We are witnessing a tragedy on a global scale. A tragedy where the common resources vital to life on earth are being diminished beyond their capacity to sustain us. Climate change is now the greatest threat to humanity’s continued prosperity. We can reduce and reverse emissions to protect our common interest.
Climate change results from a failure in our economic model and a consequence of the price of goods and services not reflecting their true cost to society. A new economic model is required that assigns value to our environment, its assets and their benefit to the common interest.
A new global currency, toco, is proposed, with each unit representing one tonne of carbon dioxide equivalent credibly reduced or removed from the atmosphere. Demand for carbon mitigation is now driven by economic activity, not by moral and ethical motives, integrating climate action directly into the fabric of global economies.
THE Toco monetary system
The currency
Toco is a global digital currency issued by The Carbon Reserve, backed by verified carbon mitigation assets. Each toco represents one tonne of carbon dioxide removed from the atmosphere. Designed for ease of use, it allows individuals and organisations to transact, save, retire and/or invest in carbon mitigation.
The carbon Reserve
The Carbon Reserve is an independent, non-profit foundation acting as the central bank of the toco monetary system. It maintains currency stability, ensures payment system safety and compliance, and actively manages the carbon mitigation asset portfolio.
The payment system
The next-generation payment system is a scalable, blockchain-based platform offering fast, mobile-enabled transactions with low CO₂ impact. It ensures compliance, security, and auditability while supporting customisable smart transactions within a high-performance, permissioned peer-to-peer network.
THE CARBON ECONOMY
The role of
the carbon reserve
EXPANDs DEMAND IN THE CARBON MARKETS
The Carbon Reserve stimulates demand for carbon reduction by offering individuals and corporations, a fungible unit of trade (toco) that represents 1 tonne of CO₂e mitigated. Increasing toco in circulation directly creates demand for investment into atmospheric carbon reduction. In this manner economic activity is linked to the achievement of environmental goals.
MANAges RISK IN THE CARBON MARKETS
The Carbon Reserve reduces exposure to individual project risks by actively managing a diverse portfolio of carbon mitigation assets. It follows a risk-based approach to assess carbon integrity risks such as additionality, permanence, and leakage. Risk discounts are applied to account for potential uncertainties involved in realising claimed mitigation outcomes. Through diversification and mitigation buffers, the risk to the mitigation value of the portfolio and the toco is reduced.
IMPLEMENTS MONETARY POLICY
The Carbon Reserve is an independent, non-profit and non-government institution and is responsible for toco issuance, purchases and the custody of the portfolio of carbon assets. It sets and conducts monetary policy to achieves its mandate. Its aim is to maintain the convertibility of tocos in circulation into carbon mitigation assets and targets an exchange rate to responsibly grow the toco supply and expand the carbon market inline with internationally agreed goals.