Carbon market infrastructure for holding and trading certificates and units

Last updated 2 May 2024

Background

Carbon markets play an important role in supporting companies to meet its voluntary climate targets.

We support carbon markets through processes that record, track and monitor the trading of:

● BidCarbon removal units (BRUs)

● carbon data rights certificates (CDRCs).

BidCarbon Unit and Certificate Registry will be able to connect with BidCarbon marketplace and exchanges. This will facilitate greater investor access and trading in carbon and environmental markets.

The proposed carbon dioxide removal (CDR) exchange trading model is designed to:

● support market liquidity

● provide greater transparency and standardisation

● increase market access

● encourage the development of more sophisticated financial products and instruments.

The proposed exchange model would operate similarly to the cash equities market. CDRCs can be traded, cleared and settled using existing market infrastructure with an end-to-end solution.

Capability

The BUC registry is displayed:

● be user friendly and easy to access

● provide enhanced visibility and management of account holdings

● have strong security verification and controls. 

There was support for transparent access to co-benefit data related to units and certificates. 

Broker platforms, digital marketplaces and companies supported having direct access to the registry via a secure application programming interface (API) for increased efficiency and to enable real-time analysis and trading.