Underlying Asset

Known as Regulatory Permits

How it works?

If an organization exceeds their carbon allowance limit, they can buy unused regulatory permits from other organizations to compensate the shortfall

Key Limitations

The system may become an indirect burdensome tax to the consumer

Overly complicated bureaucratic requirements will burden smaller organizations to maintain reporting

Underlying Asset

Carbon Credits

How it works?

Offset project developers can sell their emissions reduction/ protection/ removal which have been certified by registries such as Genesys Reserve in the form of carbon credits to organizations/ individuals

Key Limitations

Continuous trade of carbon credits without claiming/ retiring, will result in lower environmental uplift of the offset activities

Revenue from the trade of carbon credits may not reach the communities & individuals that actually do the work

Underlying Asset

Carbon Credits & Offsets

How it works?

Similar to voluntary carbon market but at its largest scale

A buyer nation can purchase carbon credits from a host nation to offset its emissions and fulfill Nationally Determined Contributions (NDCs). Eg. Internationally Transferrable Mitigation Outcome (ITMO)

Key Limitations

Direct trading between nations may undermine the value of carbon offsets & pricing, which will disadvantage poorer countries

Revenue from the trade of carbon credits may not reach the communities & individuals that actually do the work