Circular Economy Protocol
The Circular Economy Protocol — how Carrot enables digital Measurement, Reporting and Verification (dMRV) for environmental impact at scale.
What is the Circular Economy Protocol?
The Circular Economy Protocol is the layer that enables circular economy to function digitally — turning verified recycling and waste diversion into tradable environmental assets with full traceability and auditability.
At its core, the protocol enables digital Measurement, Reporting and Verification (dMRV) — a system that executes methodology rules against real-world supply chain data to produce verified environmental outcomes. By digitizing the entire verification pipeline, the protocol scales credit issuance while lowering costs and maintaining rigorous integrity standards defined by the Carrot dMRV Standard, using technology as an enabler rather than a bottleneck.
The protocol is designed so that every claim is independently verifiable, every credit is traceable to a physical event, and every participant in the supply chain receives their fair share of the value created.
What's covered in this section
The Problem
Why the linear take-make-waste economy fails and what needs to change
The Solution
How Carrot turns verified recycling into tradable environmental assets
How It Works
The end-to-end flow from waste collection to credit issuance
Platform Architecture
System architecture connecting supply chain data, verification, and credit issuance
Independent Verification
Third-party validation at every level of the ecosystem
Supply Chain Verification
dMRV, MassIDs, methodology execution, and the recycling supply chain
Credits
MassIDs, certificates, credit lifecycle, on-chain minting, purchase, and retirement
Blockchain Infrastructure
Smart contracts, on-chain flows, and interoperability