FAQ

SEC Climate Disclosure Rules, formally known as “The Enhancement and Standardization of Climate-Related Disclosures for Investors,” require public
companies to disclose detailed information about climate-related risks and their impact on financial performance in their regular filings. Adopted on March 21, 2022, these rules mandate that companies report on governance of climate risks, greenhouse gas emissions, and integration of climate factors into financial planning. By enhancing transparency and providing consistent, comparable data on climate risks, these regulations are expected to drive the carbon credit market.

They compel companies to address and mitigate climate risks more rigorously, increasing demand for carbon credits as part of their climate strategy and investment portfolios. NYSE 2,400 companies, NASDAQ 3,500 companies, OTC 10,000 companies USDA Announces Progress on Newly Authorized Climate Programs in a press release – Key milestones and progress on the Growing Climate Solutions Act and SUSTAINS Act in 2024.

WASHINGTON, Feb. 27, 2024 – Today, the U.S Department of Agriculture (USDA) published the report, Intent to Establish the Greenhouse Gas Technical Assistance Provider and Third-Party Verifier Program (PDF, 248 KB), authorized under the Growing Climate Solutions Act (GCSA). The GCSA was signed into law on December 29, 2022, as part of the Consolidated Appropriations Act of 2023. EPA Controlling Air Pollution from Oil and Natural Gas Operations Pending finalization (expected August 2024) of the EPA greenhouse gas reporting rules , methane fees based on “empirical emission data” will be imposed after January 1, 2025. This new methane charge is part of the Inflation Reduction Act (IRA), and mandates that methane emissions over a designated threshold will result in per-ton fees for petroleum and natural gas operations.

FAA The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) is a global market-based measure designed to offset international aviation CO2 emissions in order to stabilize the levels of such emissions. Offsetting of CO2 emissions will be achieved through the acquisition and cancelation of emissions units from the global carbon market by airplane operators.

Carbon credits are units that represent projects that reduce or remove carbon emissions from the air. Our projects are expected to take 90 days after the completion of our first project. The process for issuing carbon credits includes:
• Project design
o Project developers outline the project activities in a Project Design Document (PDD)

• Approval
o The certifier approves the PDD and it’s registered with an approved registry.

• Validation and verification
o A third-party auditor assesses the project’s emissions reduction claims, and a third-party rating agency assesses the probability of the credits achieving the targeted reductions.

Many types of organizations and individuals buy carbon credits, including companies, governments, universities, and consumers. Some of the top industries that buy carbon credits are fossil fuels, manufacturing, services, and transportation.

Carbon credits can be bought and sold from a variety of sources, including:
• Online carbon marketplaces: Such as Xpansive CBL and AirCarbon Exchange
• Environmental commodity exchanges: Such as those in North America and Europe, which list carbon offset credits for sale
• Brokers – Many brokers act as traders and can market credits to buyers
• Retailers – Project developers can sell their credits to retailers who can then resell them to buyers
• LandGate – An online platform that connects individuals and businesses with landowners who manage sustainable land-use projects
• Nori – A website that works with individuals, companies, and NGOs to make purchasing offsets simple

Carbon credit prices vary, but currently range around $20 to $40 per credit. Rebellion’s plugging work yielded 80,782 credits, which represents an emissions reduction of 80,782 metric tons. According to Ecosystem Marketplace the market has shifted to higher quality credits from recognized issuers such as ACR who was established in 1996 and is one of the few globally recognized leaders in the market.

As of 2023, the voluntary carbon credit market is valued at around $2 billion, though estimates can vary depending on the source and specific definitions used.

This market involves companies and individuals voluntarily purchasing carbon credits to offset their emissions, often driven by corporate sustainability goals and regulatory pressures.

Looking ahead, the voluntary carbon credit market is expected to grow significantly over the next five years. Several factors contribute to this anticipated growth:
• Increased Corporate Commitments – More companies are setting ambitious net-zero targets and are seeking carbon credits to meet their climate goals.
• Regulatory Pressures – Governments are increasingly implementing policies and frameworks that encourage or mandate carbon offsetting.
• Enhanced Standards and Transparency – Improved verification processes and standards for carbon credits are making the market more attractive and credible.
• Technological Advancements – Innovations in carbon capture and verification technologies are expected to expand the range of available carbon credits and increase market efficiency.

Analysts predict that the market could grow to between $5 billion and $10 billion by 2028, reflecting a robust expansion driven by both supply and demand dynamics. The market’s trajectory will depend on regulatory developments, advancements in carbon credit methodologies, and the overall pace of global climate action.

The process of generating carbon credits begins with a company or project developer identifying and implementing a project that reduces or sequesters greenhouse gas emissions. This could involve activities such as reforestation, renewable energy projects, or energy efficiency improvements. The project must meet specific criteria set by a carbon standard or certification body, which involves detailed documentation and adherence to rigorous methodologies. Once the project is operational, it undergoes a third-party verification process where an independent auditor assesses the actual emission reductions or carbon sequestration achieved. This verification confirms that the project has met the required standards and can generate carbon credits.

After verification, the generated carbon credits are issued and registered with a carbon registry, where they are assigned a unique serial number to ensure their authenticity and traceability. The company can then list these credits for sale on the voluntary carbon market. Buyers, which can include corporations seeking to offset their emissions or investors looking for carbon assets, purchase these credits through brokers, exchanges, or directly from the seller.

The transaction is recorded, and the carbon credits are retired from the registry to prevent double counting. This ensures that the credits are permanently removed from circulation, fulfilling the buyer’s offsetting needs and completing the sales cycle.

Our carbon credits stand out due to our commitment to high-quality methane carbon credits, which are achieved through a rigorous process of verification and innovative solutions. By focusing on methane capture and reduction, our projects address a potent greenhouse gas with a significant climate impact. We ensure the integrity of our credits through stringent third-party verification, guaranteeing that our emissions reductions are both accurate and reliable.

Additionally, our approach includes employing cutting-edge well-plugging solutions to permanently seal methane sources, offering a long-term, sustainable solution to methane emissions. This combination of advanced technology and robust verification processes not only enhances the credibility of our credits but also provides a superior environmental benefit, setting our carbon credits apart in the market.

Yes, ACR credits can be sold globally on the voluntary carbon market, not just within the U.S. The voluntary carbon market operates internationally, allowing credits generated from projects in one country to be traded and utilized by buyers across the globe. This global market enables companies and organizations worldwide to purchase carbon credits to offset their emissions, regardless of where the credits originated This global reach enhances the liquidity and appeal of U.S.-based carbon credits, contributing to a broader impact on global emissions reduction efforts.

The American Carbon Registry (ACR) is a widely recognized carbon offset program, and its credits are often approved and used by several global programs and standards. Some notable global programs that recognize or approve ACR carbon credits include:

• Verra’s Verified Carbon Standard (VCS) – Verra’s VCS program is one of the largest and most widely used carbon standards globally. ACR credits can be traded under the VCS framework, which allows them to be used in various international markets.
• Gold Standard – The Gold Standard is another prominent global certification standard that can recognize ACR credits. This standard emphasizes high-quality, sustainable projects and has a significant presence in the international carbon market.
• Climate Action Reserve (CAR) – While CAR is a North American standard, it collaborates with other international carbon markets and standards, facilitating the recognition and use of ACR credits in global initiatives.

These programs help ensure that ACR carbon credits meet international quality standards and can be used effectively in global carbon offsetting and emissions reduction efforts.