Carbon Credits
Monsoon Carbon has advised and developed emission reduction projects across all of the major carbon standards. We manage the registration, issuance, sale and delivery of a significant portfolio of carbon credits, and we’re actively developing new projects hand-in-hand with project owners throughout emerging markets.
What are Carbon Credits?
Carbon credits are a way for individuals and businesses to contribute to the fight against carbon emissions by investing in environmental projects that reduce or avoid greenhouse gas emissions. Carbon credits are also known as Emission Reductions (ERs).
However, it’s not easy to develop an emission reduction project and receive the carbon credits. It’s a long, complex and highly-audited process.
Who Issues Carbon Credits?
Several standards are well recognised in the international carbon market, including the Gold Standard, Verra’s Verified Carbon Standard (VCS) and others.
These standards set the rules for carbon credits that they issue. In general, these standards extend the pioneering work of the Clean Development Mechanism (CDM) and Compliance Emission Reductions that emerged from the Kyoto Protocol.
Many of the scientific approaches to quantifying the emissions reductions from a project were developed in the era of the CDM. With refinement, some of these methodologies are still in use.
What Rules Apply to Carbon Credits?
This is one of the toughest challenges for new project developers.
The global rules and processes vary for each standard. For example, GS and VCS have different timelines in which an emission reduction project must be submitted. These standards are constantly tweaking the rules and processes.
In addition, there are new standards that are emerging! These standards can have their own rules, and will have their own pros-and-cons. It can be a significant risk to rely on a new standard.
Each type of emission reduction project then relies on a specific methodology. The methodology and any related tools will have very specific rules that will apply to the project, including monitoring requirements that will be audited for the life of the project.
It’s a very complex space that needs expert advice.
How are Carbon Credits Bought and Sold?
It can be an arduous journey to secure carbon credits from your emission reduction project. However, once the project has been successfully validated and verified, carbon credits will be issued that can be sold.
There is a lot of change coming in the way that carbon credits are bought and sold, but for now, the majority of credits are sold in negotiations behind closed doors. It is not necessarily easy to determine the price for carbon credits or the terms under which they should be sold.
The number and complexity of carbon markets is also growing rapidly! Many of the major markets in which we operate have announced the intention to launch their own domestic markets for carbon in the coming years.
Get Help to Assess the Potential for Carbon Credits
Carbon credits are a major opportunity for the owners of eligible projects.
However, project owners often need assistance to understand the potential impact of a project and the likely requirements and hurdles they will face if they want to register as an emission reduction project and receive carbon credits. Access to this expertise and advice can be make-or-break for many projects.
We’re helped many companies, new and well established, to register their projects and realise revenue from carbon credits.
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