How Are Carbon Credits Monetized?
If you operate a business that's generating a positive impact on the environment through carbon absorption or new green technologies, you may qualify for carbon credits. Having carbon credits allows you to "sell" your positive carbon footprint to other companies that have a negative carbon footprint. You can sell your carbon credits either to a private buyer, or post them for public auction at the Chicago Climate Exchange. There are quite a few steps one needs to take before they can monetize carbon credits.
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Instructions
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Setup monitoring systems for your carbon footprint. In order for your carbon credits to be registered, you need to be able to consistently quantify just how many metric tons of carbon you're saving.
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Verify the ownership of everything that goes into creating the carbon credit. For example, if you're using proprietary technology to reduce carbon emissions but you don't own the patents, you may or may not own all the carbon credits. Consult your lawyer to make sure you own 100% of the carbon credits you'll register.
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Have your carbon credits independently verified. The verification team will look over your accounting, your monitoring systems, and your emissions and then do their own assessments. Look for a firm that will be stringent, as any oversights could result in heavy penalties if you get audited.
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Register your business as a member of the Chicago Climate Exchange. Contact the exchange for the latest registration procedures. A link to the exchange is provided in the resource section.
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Execute a sell order on your carbon credits once you're a registered member of the exchange. Large companies with negative carbon footprints will purchase credits at the best price they can get on the exchange.
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References
Resources
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