CARBON CREDIT UNITS
CARBON CREDIT RESEARCH, DEVELOPMENT & COMMERCIALISATION
MainStreet Renewables Pte Ltd ("MSR"), a Singapore-based environmental asset development company focused on the research, development and commercialisation of large-scale Carbon Credit Projects.
Through our subsidiaries and regional Project Proponents, we work with customary landowners, communities, government authorities and specialist carbon-market professionals to progress projects through the development pathway toward independent validation, verification and the lawful issuance of Carbon Credit Units.
WHAT IS A CARBON CREDIT UNIT?
A Carbon Credit Unit, or CCU, is generally associated with one tonne of carbon dioxide equivalent that has been reduced, avoided or removed in accordance with an applicable carbon standard and methodology.
For a nature-based Project, the underlying environmental outcome must first be measured, documented and assessed through the applicable Project-development and assurance processes.
Only after the relevant requirements have been successfully completed can eligible units progress toward issuance and serialization within the applicable Registry.
Once issued, each unit can be identified and tracked within the Registry according to the rules of the relevant carbon program.
THE CARBON CREDIT LIFECYCLE
THREE KEY CCU FEATURE BLOCKS
ONE UNIT — ONE TONNE OF CO2e
A Carbon Credit Unit commonly represents one tonne of carbon dioxide equivalent associated with an eligible and verified environmental outcome under the applicable program.
ONE IDENTITY — SERIALIZED & TRACEABLE
Following lawful issuance, eligible units receive identifying Registry information that allows individual units or blocks of units to be tracked through their lifecycle
ONE RECORD — RECORDED IN A REGISTRY
A Registry provides the recordkeeping infrastructure through which issued units and their status can be administered according to the applicable carbon program.
FROM PROJECT DEVELOPMENT TO CARBON ASSET
MainStreet Renewables operates upstream in the Carbon Credit lifecycle.
Our role begins before a Carbon Credit Unit exists.
Through the Group's regional Project Proponents and specialist providers, qualifying Carbon Projects are researched, structured and progressively developed through landholder engagement, Project design, field measurement, monitoring, regulatory processes and preparation for independent technical assessment.
The objective is to establish the evidence, documentation and Project framework necessary for qualifying environmental outcomes to progress toward validation, verification and ultimately Carbon Credit Unit issuance.
NOT ALL CARBON CREDITS ARE THE SAME
LOOK BEHIND THE UNIT
A Carbon Credit Unit should not be considered simply because it represents “one tonne of carbon.”
The credibility and characteristics of a unit can also depend upon the Project from which it originated, the methodology applied, the monitoring and verification undertaken, the vintage, applicable regulatory requirements, the carbon standard and Registry, and the environmental and community outcomes associated with the Project.
For buyers and participants in carbon markets, understanding the Project behind the unit can therefore be just as important as understanding the unit itself.
CCU CHARACTERISTIC BOXES
PROJECT — WHERE DID THE UNIT COME FROM?
Every issued Carbon Credit Unit originates from an underlying Project. Understanding the Project location, activity, Project Proponent and environmental objectives provides context for the carbon asset.
METHODOLOGY — HOW WAS THE OUTCOME CALCULATED?
The applicable methodology establishes rules and procedures for quantifying and monitoring the relevant environmental outcome.
VINTAGE — WHEN WAS THE OUTCOME GENERATED?
The vintage identifies the period in which the underlying emission reduction, avoidance or removal occurred, subject to the rules of the applicable program.
REGISTRY — WHERE IS THE UNIT RECORDED?
Following issuance, Registry information provides traceability and records relevant identifying information and status in accordance with the applicable carbon program.
ISSUED CCU VS CARBON CREDIT FUTURE
CARBON CREDIT UNIT — CCU
An issued CCU is a carbon unit that has successfully completed the applicable Project, validation, verification and issuance processes and has been recorded or serialized within the applicable Registry.
CARBON CREDIT FUTURE — CCF
Carbon Credit Future” is the commercial term used within the MainStreet Money system for a pre-issuance contractual reservation associated with a future Carbon Credit Unit.
A CCF is not an already issued Carbon Credit Unit.
Following lawful issuance and Registry serialization, an eligible issued CCU may subsequently be reconciled and allocated against the corresponding contractual reservation in accordance with the applicable Project and Member arrangements.
IMPORTANT DISTINCTION:
CCF = PRE-ISSUANCE CONTRACTUAL RESERVATION
CCU = ISSUED / SERIALIZED CARBON UNIT
FREQUENTLY ASKED QUESTIONS
WHAT DOES ONE CARBON CREDIT UNIT REPRESENT?
A Carbon Credit Unit is generally associated with one tonne of carbon dioxide equivalent (tCO2e) that has been reduced, avoided or removed in accordance with the applicable carbon standard, methodology and program rules.
WHEN DOES A CARBON PROJECT BECOME A CARBON CREDIT?
A Project does not itself “become” a carbon credit. The Project generates measured environmental outcomes. Where those outcomes satisfy the applicable methodology, regulatory, validation, verification and issuance requirements, eligible units may be issued and recorded in the applicable Registry.
WHO VERIFIES CARBON CREDITS?
Verification is undertaken through the assurance arrangements required by the applicable carbon standard or program, generally involving appropriately qualified independent validation and verification bodies.
WHAT IS CARBON-CREDIT SERIALIZATION?
Serialization is the assignment of identifying Registry information to issued units so they can be distinguished and traced within the applicable Registry system.
WHAT IS A CARBON REGISTRY?
A Carbon Registry is the recordkeeping system used by the applicable carbon standard or program to administer issued units and their identifying information and status.
WHAT DOES “VINTAGE” MEAN?
Vintage generally identifies the period in which the underlying emission reduction, avoidance or removal associated with a unit occurred, subject to the applicable program rules.
CAN A CARBON CREDIT BE TRANSFERRED?
Issued units may generally be transferred where permitted by the applicable Registry rules, regulatory framework and relevant commercial arrangements.
WHAT DOES IT MEAN TO RETIRE A CARBON CREDIT?
Retirement generally records that an issued unit has been permanently removed from further circulation for a particular purpose or claim in accordance with the applicable Registry rules.
WHAT IS THE DIFFERENCE BETWEEN A CCU AND A CCF?
A CCU is an issued carbon unit recorded or serialized within the applicable Registry. A CCF, as used within the MainStreet Money system, is a pre-issuance contractual reservation associated with a future CCU and is not itself an already issued carbon credit.
CAN A CCF BE DESCRIBED AS AN ISSUED CARBON CREDIT?
No. Before lawful issuance and Registry serialization, a CCF should be described as a pre-issuance contractual reservation associated with a future Carbon Credit Unit, subject to the applicable Project and commercial arrangements.
FROM FOREST TO CARBON CREDIT UNIT
Environmental Outcomes Made Measurable and Traceable
A Carbon Credit Unit represents the end of a development pathway that begins long before issuance.
It begins with the Project.
It continues through people, science, measurement, documentation, regulatory processes and independent technical assessment.
And where the applicable requirements are successfully satisfied, measurable environmental outcomes may ultimately become traceable Carbon Credit Units.
The value of the unit begins with the integrity of the Project behind it.
