Time to go green? Voluntary carbon contracts are here to help. Hear about those and what’s happening in the oil, freight and ferrous markets.
Extra Notes from Episode:
CBL CME Global Emissions Offset Futures: CBL Global Emissions Offset (GEO and N-GEO) futures provide delivery of physical carbon offset credits.
CBL is a global leader in spot energy and environmental markets that facilitates the secure and seamless trading of physical commodities like carbon, renewable energy, water, and gas on its own trading platform.
The Verra Registry was launched in April 2020 facilitates the transparent listing of information on certified projects, issued and retired units, and enables the trading of units. It is the central repository for all information and documentation relating to Verra projects and credits. The Verra Registry also ensures the uniqueness of projects and credits in the system.
Verra registry of projects (sorted by VCUs): Once projects have been certified against the Verified Carbon Standard (VCS) Program’s set of rules and requirements, project developers can be issued tradable GHG credits that are called Verified Carbon Units (VCUs). Those VCUs can then be sold on the open market and retired by individuals and companies as a means to offset their own emissions.
Verified Carbon Standard Program (VCS): The world’s leading voluntary Greenhouse gas (GHG) program. The VCS Program is the world’s most widely used voluntary GHG program.
Rimba Raya is the largest REDD+ project in the world, in terms of avoided emissions delivered to date, protecting nearly 65,000 hectares of peat swamp forest in Central Kalimantan in Indonesian Borneo and avoiding more than 130 million tonnes of carbon emissions.
REDD+ refers to a process moderated by the United Nations Framework Convention on Climate Change (UNFCCC) which supports countries’ efforts to reduce emissions from deforestation and forest degradation, and foster conservation, sustainable management of forests, and enhancement of forest carbon stocks.
InfiniteEARTH will deliver 100% of the carbon credits created by the Rimba Raya Project, expected to be 70 million credits over the next 20 years, less up to 635,000 carbon credits per annum which are already committed to previous buyers.
For the first four years, the amounts delivered under the Carbon Stream include 1,000,000 carbon credits per annum at a pre-agreed gross sale price of US$8.50. (buyer was a hedge fund and this has created a ceiling to voluntary carbon credits although these are considered premium and if sold in future would demand a premium which would push prices above this ceiling).