Issuance of BRUs

Create a CDRC

Issuance of BRUs

Buying and selling CDRC

The issuance, transfer of BidCarbon removal units (BRUs) is not considered to be a supply of goods or services. It is not primarily financial in nature and is therefore not subject to the usual financial regulations.

You should obtain your own professional advice about the tax treatment of BRUs having regard to your own situation.

Tax treatment of BRUs

Who is the holder of an BRU?

You are the holder of an BRU if you are the entity in whose BUC Registry account there is an entry for that unit.

If an entity holds an BRU on behalf of another entity (as their nominee), the entity on whose behalf the unit is held, is taken to hold the unit, not the nominee.

You hold the unit from the date it is registered in your name.

However, when assessing assets, the owner of the BRU may commission registered agents to create and sell CDRCs. If an entity holds a BRU on behalf of another entity (as its nominee), it does not have the right to commission registered agents to create and sell CDRCs.

Only data that can be used to calculate net emissions reductions/removals can be considered assets if they are included in the balance sheet. Registered holders of BRUs that comply with the the BidCarbon (Carbon Farming) Standard (Carbon Farming Standard) and the BidCarbon Unit and Certificate Registry Standard (BUC Standard), as well as the BidCarbon Unit and Certificate Registry Guides, transfer ownership of the certificate to another person by creating a CDRCs of the eligible BRUs.

The Operating Companies may correct the BUC Registry in certain circumstances, including in order to comply with a court order to rectify errors flowing from fraudulent conduct. However, if the CDRC is transferred to another person’s account before the defect is detected, that other person will nevertheless have good title to the CDRC provided they purchased the CDRC in good faith for value from the registered holder and without notice of the defect. A person who acquired the CDRC without purchasing it in good faith from the registered holder for value (for example, if they received it as a gift), or who was aware of the defect, will not have good title to the CDRC.

The BidCarbon Standard Scheme does not prevent the creation or enforcement of, or any dealings with, equitable interests in CDRCs. It is possible that the holder of CDRCs may provide security (e.g. a mortgage) over the CDRCs recorded on the balance sheet or hold the CDRCs on behalf of others under a trust or other beneficial ownership arrangement.

Property rights in BRUs