Sustainable Biotech, Inc.
Leading the Third Wave in Biotech
Carbon Assets
If you're thinking about developing a project that will generate carbon offsets, we can provide the help you need to get carbon financing for your project. A carbon offset is a financial instrument that represents the reduction of one metric ton of carbon dioxide or its equivalent in other greenhouse gases.
Sustainable Biotech has alliance partners with core competencies in carbon asset trading,
renewable energy trading, and traditional energy derivatives trading.
If the project merits, it is possible to forward-sell some of the carbon assets to help fund the project. The typical carbon financing scenario is:
- Establish baseline
- Calculate emission reduction credits
- Project validation
- Introduction to the market
- Payment terms
- Risk of delivery
- Annual verification
- Monetization over 10 year period
A graphic that describes Renewable Energy Certificates (REC):
Clean Development Mechanism
The Clean Development Mechanism (CDM) is an arrangement under the Kyoto Protocol
that allows countries with a greenhouse gas reduction commitment (i.e. Annex 1
countries) to invest in projects that reduce emissions in developing countries as
an alternative to more expensive emission reductions in their own countries.
An important feature of CDM carbon projects is additionality. Additionality is required
to generate the carbon offsets. Additionality means that the planned emission reductions
would not happen without the incentive provided by emission reductions credits.
To demonstrate that carbon offsets are needed to stimulate the project, we employ a step-wise approach to identify the baseline scenario and simultaneously demonstrate additionality.
- Identification of alternatives
- Investment analysis
- Barrier analysis
- Common practice analysis