Ways of selling
This article examines the mechanism of selling carbon units obtained as a result of implementing climate projects in the territory of the Russian Federation in accordance with national climate regulation. It is assumed that the reader is an executor of a climate project and/or an owner of carbon units. Accordingly, they already possess the necessary knowledge about the legal nature of the units and their purposes of use.
If you currently lack such knowledge, it is recommended to familiarize yourself with this material before reading this article.
There are the following options for selling carbon units:
- Independent search for a buyer;
- Sale of carbon units through an intermediary;
- Sale of carbon units through a commodity exchange.
Independent search for a buyer:
Advantages:
- Potentially higher price. You can negotiate directly with the buyer and achieve a more favorable price.
- Direct control over the deal. You choose the buyer and the terms of the deal yourself.
- Possibility of long-term cooperation: You can find a buyer interested in long-term cooperation.
Disadvantages:
- Difficulty in finding a buyer. The need for negotiations, which can be a complex process requiring special skills.
- Risks of fraud.
How to independently find a buyer for carbon units:
- Post an advertisement for the sale of carbon units on specialized websites and social media groups.
- Participate in industry events.
- Collaborate with consulting companies specializing in the carbon unit market.
Intermediary services for selling carbon units:
Advantages of using intermediary services:
- Time and effort savings: You don’t need to search for a buyer and negotiate on your own.
- Risk reduction: Intermediaries help avoid fraud and other risks associated with sales.
- Access to information: Intermediaries have access to market information that you may not have.
- Professional assistance: Intermediaries can provide professional assistance in transaction formalities and document preparation.
Disadvantages of using intermediary services:
- Additional expenses: You will have to pay the intermediary for their services.
- Loss of control: You partially lose control over the process of selling your carbon units.
When choosing an intermediary, it is important to:
- Learn about their experience in the carbon unit market.
- Read reviews about the intermediary.
- Compare the commissions of different intermediaries.
- Enter into a contract.
Commodity exchange for selling carbon units:
Advantages of selling on the exchange:
- Transparency: All transactions on the exchange are conducted according to uniform rules, ensuring transparency of pricing.
- Reliability: The exchange guarantees the execution of transactions.
Disadvantages of selling on the exchange:
- Exchange fees: You will have to pay the exchange for executing the transaction.
- Complexity of the process compared to the first two methods.
How to sell carbon units on the exchange:
It is important to remember that the exchange can be used to sell carbon units in the form of commodity auction and organized trading. Please read about the procedure for these procedures in the material at the link.
Deals on the sale of carbon units
As of the writing of this article on 09.03.2024, five deals on the sale of carbon units have been concluded.
In September 2022, the National Commodity Exchange held commodity auction for the first time for the sale of 20 carbon units. Two deals for 10 carbon units each were concluded at a price of 1000 rubles per unit.
The following commodity auction was conducted by the National Commodity Exchange in November 2023, resulting in two deals for 2000 and 735 carbon units at a price of 700 rubles per unit.
One deal for 1000 carbon units was concluded directly between companies.
Up-to-date information on transactions with carbon units can be found in the table at the link.
Conclusion
Infrastructure for selling carbon units has been created, and the first deals have been concluded. It can be predicted that new ways of selling carbon units will emerge as demand for them increases, including those that facilitate their acquisition by individuals. Such methods may include:
- Tokenization of carbon units (creating digital copies on the blockchain);
- Creation of marketplaces;
- Integration into various services the ability to purchase carbon units to offset carbon footprints. For example, for air travels.
