We have build strong relationships with many Singapore based carbon offset projects who cannot wait to be onboarded in our solution. Some offset credit buyers directly invest in an offset project in return for rights to (some portion of) the credits the project is able to generate. This approach can allow for deeper engagement and a fuller understanding of a project’s strengths and weaknesses.
Alternatively, a commonly used purchasing option is to contract directly with a project developer for delivery of carbon credits as they are issued. Such contracts generally take the form of “Emission Reduction Purchase Agreements” (ERPAs). An ERPA provides project developers with confidence that they will be able to sell a reliable volume of offset credits. For buyers, the advantage is being able to lock in a price for offset credits that is typically lower than market prices (in exchange for some delivery risk). ERPAs can be structured in numerous ways, including as options contracts. This guide provide a lot of additional information.
In the short term, we reserve ourselves the right to purchase un-retired carbon credits from a variety of sources, in order to fulfil the demand. We will be working fast to work with small and medium sized projects going through accreditation in order to secure their carbon credits for our purpose. We are working on both sides and will ensure the smoothest transition from one to the other and ensure we reach of vision of working with small to medium size carbon offset projects.
Offset credit transfer: After they are issued, carbon credits can be transferred into different accounts in an offset program’s registry. Transfers are usually undertaken as a result of a purchase or trade (so, after a purchase, the offset credits will be transferred from the project developer’s account into an account owned by the purchasers). Offset credit buyers may then use the offset credits by retiring them (see next step), hold them, or transfer them to other accounts. Offset credits may change hands multiple times (getting transferred among multiple accounts) before they are ultimately retired and used.
<aside> 📌 Purchasing options: In rare cases, a prospective offset credit buyer may sponsor the development of a methodology for a new project type that is not already eligible in existing offset programs. This effort can be resource-intensive – and risky – but could make sense for organizations with a strong interest in a new type of project activity.
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