Carbon credits

We support markets for the BidCarbon Units and Certificates administered under the BidCarbon Standard:

● Carbon Data Rights Certificates (CDRCs); and

● Non-Asset BidCarbon Removal Units (NABRUs).

CDRCs are tradable certificates, and NABRUs are tradable units, issued under their respective standards.

Supply of BidCarbon Units

The issuance, transfer or sale of any BidCarbon Unit, or any digital representation of a carbon credit, is treated as neither a supply of goods nor a supply of services and is therefore an excluded transaction.

A digital representation of a BidCarbon Unit includes a digital image or other digital representation of a carbon credit created using blockchain technology.

Supply of BidCarbon Units

BidCarbon Unit and Certificate (BUC) Registry

The BidCarbon Unit and Certificate (BUC) Registry is an online system that securely tracks the status, location and ownership of BidCarbon Removal Units (BRUs), Non-Asset BidCarbon Removal Units (NABRUs) and Carbon Data Rights Certificates (CDRCs).

Go to the BUC Registry

BidCarbon Units demand includes:

● carbon removal contracts

● government bodies and public authorities

● organisations wanting to voluntarily reduce emissions.

Voluntary markets allow organisations and different government bodies to voluntarily reduce their emissions by sourcing and voluntarily cancelling NABRUs or surrendering CDRCs. Buyers are often interested in the non-carbon benefits associated with the underlying projects.

Learn more about voluntary offsetting and surrender.

The BidCarbon Units markets

Transferring CDRCs and NABRUs

CDRCs and NABRUs can be transferred between BUC Registry accounts.

A transfer of a CDRC or NABRU is valid when an entry for the unit has been removed from the transferor's BUC Registry account, and an entry for the unit is made in the transferee's BUC Registry account. These steps occur automatically and securely.

A CDRC or NABRU can be transferred by:

● assignment, such as a sale or gift; or

● operation of law, such as the death or bankruptcy of the account holder.

If required, we can restrict transfers of CDRCs and NABRUs within the BUC Registry to:

● ensure the integrity of the registry;

● prevent, mitigate or minimise abuse of the registry; or

● prevent, mitigate or minimise criminal activity involving the registry.

CDRCs cannot be transferred to a foreign account in the BUC Registry.

BidCarbon Standard 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

A BUC Registry account holder may voluntarily cancel a BidCarbon Removal Unit (BRU) by surrendering the Carbon Data Rights Certificate (CDRC) issued in respect of that BRU for the purpose of offsetting greenhouse gas emissions.

Upon surrender of the CDRC, the relevant BRU will be recorded as cancelled in the BUC Registry and permanently cancelled.

Surrender of a CDRC and Cancellation of a BRU

Voluntarily cancelling NABRUs

BUC Registry account holders can voluntarily cancel an NABRU to offset greenhouse gas emissions. The entry for the NABRU will be removed from the BUC Registry account and permanently cancelled. 

A BUC Registry account holder may voluntarily cancel a BRU by surrendering the relevant CDRC for the purpose of offsetting greenhouse gas emissions.

Legal rights are an important characteristic of assets such as voluntary carbon credits (VCCs). VCCs are generally not tangible assets. Rather, they are digital units issued by a crediting programme to represent a verified emission reduction or removal in accordance with the programme's applicable rules and methodologies.

The legal rights associated with a carbon credit may derive from the laws and regulations applicable in the relevant jurisdiction and, where applicable, from other legally recognised rights or interests. These rights may therefore vary between jurisdictions.

Verified carbon credits are issued and recorded by independent standards and registries. Each verified carbon credit is assigned a unique serial number upon issuance and is therefore individually identified rather than being an unallocated commodity.

Spot VCCs are generally not regulated as financial instruments under the EU Markets in Financial Instruments Directive (MiFID) or, where applicable, as specified investments under the UK's financial services regulatory framework. However, derivatives and other financial products referencing VCCs may fall within the scope of financial services regulation, depending on their structure and the applicable jurisdiction.

BidCarbon Removal Units (BRUs) are classified by the BidCarbon Foundation as non-financial products. This classification does not constitute a determination that a BRU or any transaction involving a BRU is outside the scope of financial services regulation in every jurisdiction.

The BidCarbon Foundation does not:

● provide financial advice in relation to BidCarbon Units;

● act as a buyer or seller of BidCarbon Units for its own account;

● provide dealing or investment services in BidCarbon Units on behalf of another person;

● operate or market derivatives of BidCarbon Units as financial products;

● operate a registered managed investment scheme; or

● provide custodial or depository services for BidCarbon Units.

The BidCarbon Foundation recommends that persons considering the acquisition, sale or other transfer of BidCarbon Units obtain independent professional advice appropriate to their circumstances and the jurisdiction in which the transaction takes place.

For more information, see our Statement on the Legal Characteristics of BidCarbon Units.

BidCarbon Units as non-financial products

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