As part of the Project Pre-Launch analysis, NAVF Carbon identifies potential carbon credit purchasers (i.e. BP, Chevron, Unilever, Walt Disney, etc) and negotiates to have an agreement in principal for the purchase of the entire projected carbon credit pool projected to be issued at the end of the project development.
Carbon credits are sold at a discount to the prevailing carbon allowance market price at the time of the sale. Monetization can occur at two points in the development of a carbon sequestration project:
- At the end of Phase One for up to 35% of the total project volume of carbon credits to be generated by the project. Carbon credits sold at this point in the project development will be sold at a slightly higher discount to the current carbon allowance price.
- At the end of Phase Three when the regulatory entity has approved the carbon sequestration project and issued the initial “bucket” of carbon credits. Carbon credits sold at this point in the project development will be sold at a discount to the current carbon allowance price.
