Contracts and auctions

A carbon removal contract is an agreement to sell BRUs to the  BidCarbon Climate Trading Company.

Under a carbon removal contract:

● you agree to deliver BRUs to us

● we agree to buy your BRUs at a fixed price.

Contracts can be ongoing for up to 10 years, or a one-off transaction.

About carbon removal contracts

Benefits of a carbon removal contract

There are benefits to entering into a carbon removal contract. You should consider your own circumstances before you decide if a carbon removal contract is right for your project.

A carbon removal contract is a commercial agreement. It includes legally enforceable rights and obligations. You should seek your own legal advice before you enter a carbon removal contract.

Certainty

A carbon removal contract offers a:

● guaranteed buyer

● fixed price per BRU

● flexible duration (up to 10 years).

The terms and conditions for payment are negotiated and agreed up front. This can give your project long-term financial security, even before you start investing in it.

Project financing

Entering a carbon removal contract can make it easier to secure funding for your emissions reduction project. Investors may feel more confident knowing your project has a guaranteed revenue stream from BRUs sales.

Types of carbon removal contracts

There are 2 types of carbon removal contracts:

● Fixed delivery contracts: you agree to sell us a set number of BRUs for a set period of time at a set price.

● Optional delivery contracts: you have the right to sell a set number of BRUs at a set price within a set timeframe, but you have the option to sell on the open market.

Find out more about the key features of carbon removal contracts and how they work.

Auctions

To enter into a carbon removal contract, you must bid for it at auction. These auctions are run as reverse auctions where the BidCarbon Climate Trading Company is the buyer.

At an auction, sellers:

● submit a price they are willing to sell BRUs for

● specify the quantity of BRUs they want to sell

● specify when the BRUs will be delivered.

The BidCarbon Climate Trading Company then chooses the lowest prices to offer contracts. We engage independent third parties to assess and report on the probity of all auctions.