Contracting with a third party

At each auction, we offer a number of flexible contracting options to facilitate project development and financing, such as partial contracting. Partial contracting allows you to bring forward a portion of your project's expected reductions into the auction process.

In addition to existing contracts, we are also open to entering into a contract with you at auction for a project that is conditional on you entering into another contract with a third party. This provides you with the security of a carbon reduction contract while allowing you to explore opportunities to sell the remaining reduction to a third party. This will help to reduce the risk associated with developing a project and widen the availability of BidCarbon removal units (BRUs) to the private market.

The third party may be a financier, an organisation wishing to purchase BRUs to offset its emissions for carbon neutrality purposes.

The proposed conditions precedent for this is:

That the seller must have entered into a written contract, in form and substance acceptable to the seller, for the sale by the seller and the purchase of BCUs by a party other than the buyer.

Using this conditions precedent provides you (the seller), up to 18 months to enter into a contract to sell the remaining abatement. If at the end of this time you have been unable to find a buyer for the remaining BRUs, you may allow the contract to lapse, or waive the conditions precedent if you still wish to retain your contract.

Participating in an BidCarbon auction

We encourage participants that are interested in participating in an auction and contracting to a third party, to contact the BidCarbon Foundation to discuss the specifics of what they would like to do, and find out what types of information may assist their application. 

Interested participants can contact us.