Registry

Life stages of a carbon credit (status)

Each credit, once issued, is followed with its status. It enable us to identify the ones that can be sell, the ones that must be certified or verified.

Insert drawing here

1. Pre-certified

When:

  • The project went through Riverse’s process of verification
  • The LCA is 95% OK, only minor changes can be done
  • The volume estimations have been discussed with the project developer

What can we do with it:

  • it helps us give visibility of futur stock to our customers
  • it can be created by Riverse
  • it can be canceled by Riverse without VVB or if the VVB re-evaluate the total volume
  • it can be “certified” by the VVB
  • it can be pre-sell if it meets ex-ante selling rules

2. Certified

When:

  • The project has been audited and certified by VVB
  • Discussions between VVB & project developer are closed

What can we do with it:

  • it can be sold or retired by the owner
  • it can be cancelled if verification did not occur and project developer did not meet the targets or the oracles proof are not suffisant

3. Verified

When:

  • The project developer submitted oracles (proof for verification)
  • Proofs have been audited and validated by Riverse (at first, then in a decentralized manner)

What can we do with it:

  • it can be sold or retired by the owner

4. Retired

Only when:

  • the owner decided to “use” it for its carbon accountability

What can we do with it:

  • communicate only
  • can not be transfered or anything

5. Cancelled

When:

  • Riverse review estimations at “pre-certified” stage
  • VVB review estimations at “ongoing certification” stage (must include validation from both Riverse & proejct developer)
  • After certification,
  • if VVB does not validate the targets
  • automatically if at end of vintage year (+ 6 months) production targets has not been met

What can we do with it:

Pretty much nothing 😟

Ownership of a carbon credit

Basics

The ownership of the carbon credits is tracked at all time, it can not be empty.

When the credits are issued for the first time (by Riverse), the owner is automatically set to the project developer (except for the 10% that goes directly to the issurance funds).

A credit can be sold at any given time if:

  • its status is not “Cancelled” nor “Retired” (it means it can be sold before certification & verification)
  • the total amount of authorized pre-sells is not met (cf ex-ante selling rules)

Transfer of ownership

A “transfer of ownership” is a specific type of transaction. When this type of transaction is created (and validated), meaning a buyer bought a batch of carbon credits from one or several projects, the owner of the specified batch is updated.

In this type of transaction, destination owner must be specified, otherwise the transaction can not be pursue.

A transfer of ownership can be triggered by:

  • online purchase
  • manual purchase / buyer agreement
  • API calls from identified partners

In the near future, we will design a unique interface (api) that fits all these cases.

Ex-ante credits purchase and offtake agreements

Basics

Ex-ante credits are credits for which the emissions reduction/removal have not yet been verified and validated. Relating to the different life stages of a carbon credit, ex-ante credits are either “pre-certified” and “certified”.

Buying credits is only possible once the credits are certified, if the credits have not yet been certified the buyers can make a offtake agreement where priced is fixed and the associated credits are block for this buyer.

The main risk with selling ex-ante is that the project do not deliver in the end the expected emissions reduction/removal, and the buyer got a part of its credits cancelled.

To limit this risk, we do two things:

  • Riverse re-evaluate each year with the project its production perspectives.
  • We limit the number of ex-ante credits available for sale in regards to the number of years separating us to the moment where the emissions are due to be reduced

Volume for sale

Where:

  • Year N: is the vintage year
  • Year current: is the actual year when the sale is made.

Available credits for sale in Year N, if the project is certified:

equation for volume for sale

Example for volume estimation

If a buyer is looking at a project certified in 2021 and we are in 2022, here is how we would make credits available for him.

carbon credit reseller table example

Offtake agreements

For “pre-certify” credits (ie credits that are not yet certified by a VVB), the buyers can make a offtake agreement (or purchase agreement) where priced is fixed and the associated credits are booked for this buyer.

This agreement enable projects to be reassure in the selling of their credits and the buyers the availability of specific credits.

For volume calculation of credits that can be pre-sold in offtake agreements, we apply the exact same mechanism than for certify credits.

Available credits for sale in Year N, if the credits are not certified:

Stay in touch

Thank you! Your submission has been received!

Oops! Something went wrong while submitting the form