Carbon credits

The issuance, transfer or sale of any BidCarbon removal units (BRUs) (or any digital representation of a carbon credit), is treated as neither a supply of goods nor a supply of services i.e., an excluded transaction. A digital representation of a BRUs includes a digital image of a carbon credit created using blockchain technology.

Supply of BRUs

BidCarbon Unit and Certificate (BUC) Registry

The BidCarbon Unit and Certificate (BUC) Registry is an online system securely tracks the location and ownership of BidCarbon removal units (BRUs) and Carbon Data Rights Certificates (CDRCs).

Through BUC Registry, BRUs can be:

● issued

● transferred in special cirumstances

● surrendered

● cancelled

● delivery

Through BUC Registry, CDRCs can be:

● create

● transferred

● withdraw

Go to BUC Registry

The market's supply and demand determines the value of BRUs. The price can vary based on demand and how successful BidCarbon Standard Scheme projects are.

Participants holding CDRCs may sell BRUs from their CDRCs on the secondary market:

● the BidCarbon Climate Trading Company.

● organisations wanting to voluntarily reduce emissions

● investors wanting to diversify their portfolios and contribute to climate change mitigation efforts.

Supply and demand

The market has 2 sides, supply and demand.

The supply side of the market is sourced from:

● existing BidCarbon Standard Scheme projects

● new and expanded BidCarbon Standard Scheme projects

● BRUs held in BUC Registry.

The demand for BRUs from multiple sources can dictate how many BRUs need to be supplied. Sources of demand include:

● carbon removal contracts

● governments

● organisations wanting to voluntarily reduce eemissions

Voluntary markets enable organizations and government bodies to reduce their emissions by sourcing and cancelling CDRCs on a voluntary basis. Buyers are often interested in the non-carbon benefits associated with the underlying projects.

Learn more about voluntary offsetting.

Quarterly BidCarbon Market Reports

Learn more about the market for BRUs in our quarterly reports.

View our Quarterly BidCarbon Market Reports

The secondary market

BidCarbon Standard Scheme project can also achieve a range of benefits called non-carbon benefits or co-benefits. These include:

● environmental

● economic

● social

● cultural.

Purchasing CDRCs with co-benefits can offer additional value in meeting sustainability commitments.

When purchasing CDRCs,  you need to enter into a commercial agreement with the seller. CDRCs sellers frequently publish information on their websites about the non-carbon benefits of a particular project.

You can also learn about projects with non-carbon benefits through the ESG Standards.

Please be aware that we do not conduct checks or provide assurance on non-carbon benefit claims. It is your responsibility to conduct due diligence when buying CDRCs with non-carbon benefits.

After receiving CDRCs in your BUC Registry account, verify your commercial agreement details match the register's.

Purchasing CDRCs with co-benefits

In the event that an account is closed due to non-compliance with the BidCarbon Registry of Units Specifications or BidCarbon Registry of Units Guides, any BRUs within the account will be cancelled.

Account holders may cancel their BRU through the BUC Registry at any time. Once we receive the cancellation request, we will remove the entry for the cancelled unit.

Cancelling BRUs

For an asset like a voluntary carbon credits (VCCs), legal rights matter. Voluntary carbon credits exist not as tangible, visible assets but instead as digital assets created by a crediting programme to represent a verified emission reduction or removal, in line with their specific rules and methodologies. At the same time, the rights that underpin these assets are derived from the laws or regulations of relevant national or local authorities (and in some cases, the customs of indigenous communities), which vary between jurisdictions. VCCs are verified and issued by independent standards and registries. Every verified carbon credit is assigned a unique serial number upon issuance, hence it is not an unallocated commodity.

Spot VCCs are not a regulated financial instrument under MiFID in the EU or under the Regulated Activities Order in the UK.  BidCarbon removal units are classified as non-financial products. Currently, carbon credits are not regulated by the Financial Services Authority (FSA). However, derivatives on VCCs may be regulated financial instruments in both the EU and UK.

The BidCarbon Foundation will not make it available to anyone:

● provide financial advice

● buy, sell or trade BRUs

● operate and market BRUs or derivative of BRUs

● operate a registered managed investment scheme

● operate custodial or depository services.

We recommend you seek independent, professional advice when trading BRUs. For more information, read our statement on the legal characteristics of BRUs.

BidCarbon removal units as non-financial products

Should an asset be recognised?

When assessing whether a voluntary carbon credit held for use is an asset, a company should consider the nature of the economic benefits and when they are consumed. In PWC experience, the company’s ability to use the carbon credit to offset its own emissions generally represents economic benefits flowing to the company from the credit. If economic benefits arise from the ability to offset, then the company may have an intangible asset. This is because it has the power to obtain the future economic benefits and restrict others’ access to those benefits. For more information, click here to go to the PwC article page.

The BidCarbon Foundation do not moderate transaction disputes between buyers and sellers.

However, BidCarbon marketplace offers a buyer protection policy. Buyers and sellers also can't share contact information, including email addresses and phone numbers, prior to completing a transaction on BidCarbon Marketplace.

Contacting another BidCarbon Marketplace member to discuss moving a purchase off BidCarbon Marketplace exposes both the buyer and seller to the risk of fraud. It also means both buyer and seller are not covered by BidCarbon Marketplace protection programs.

Buyer Protection