How to Become a Carbon Credit Provider

Becoming a carbon credit provider allows small businesses involved in reduced-emission technology work or in industries that produce low emissions to sell credits to companies that produce high volumes of carbon. Farmers, companies that produce little emissions and those involved in carbon-removal processes are often eligible to sell carbon credits. Credits are bought and sold in a manner similar to the stock market through the Chicago Climate Exchange (CCX). Sellers provide carbon credits to this market for other companies to purchase to offset their own emissions.

Instructions

1. Determine if your business or company is eligible to sell carbon credits. Companies that produce low carbon emissions, no emissions or who have a verifiable method of offsetting carbon are generally eligible to sell credits.

2. Seek membership to the Chicago Carbon Exchange. You will need to be registered with the Exchange to begin providing carbon credits for sale. Depending on market conditions, a credit's price can go up and down throughout the day (see References).

3. Receive and review membership information and information on how to list and sell carbon credits. This is dependent upon being approved as a listed business on the CCX. Keep records of your carbon offsetting procedures and amounts (in tons) of carbon that you offset. The CCX periodically audits businesses and companies to ensure the number of carbon stock credits being sold is equal to the amount of carbon being offset. The CCX provides members with information on how to measure carbon offsetting and proper record keeping (see References).

4. Initiate trades of carbon credits on the CCX with other registered companies listed as buyers on the Exchange. Typically, these are large companies that produce a high volume of carbon emissions such as factories. Trades are handled through The Registry on the Chicago Climate Exchange's Electronic Trading Platform. Depending on the number of carbon credit shares you are authorized to sell and trade (based on carbon offsetting), hundreds of shares can potentially be sold to larger companies.

Tips & Warnings

• Carefully calculate and represent the number of carbon credits that your farm or business is able to provide for sale.

• Carbon credit providers do get audited by the CCX from time to time. Keep records of credits bought and sold as well as the amount of carbon offset, and activities done to create these offsets. Profits are also to be recorded.

References

• Chicago Climate Exchange