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old man river

03/13/23 10:23 PM

#18861 RE: happyglass #18857

There are a few challenges with carbon credits.

In order to get cash for the carbon credits, you need to document the carbon saved less the carbon created to the new form or energy or solid outputs. This is done after the conversion process is completed. The savings is based on what the company saves rather than downstream benefits. Once the tonnage is calculated using a third party verifying firm, then the credits can be registered and then monetized. Pricing for carbon credits is quite variable. It depends if the markets has a formal regime or it is voluntary. The formal one in California is 30 dollars per ton before selling commissions and verification. An informal market is less than a quarter of the price. Europe is over 100 per ton.