Select Carbon has built strong trading relationships with purchasers of Australian Carbon Credit Units (ACCUs) within the secondary carbon market and can maximize the total value for ACCUs sold on a landholder's behalf by seeking the highest price. Select Carbon has existing trading relationships in place with global companies as well as locally based resource companies, most of whom have set internal emission targets and have a business mandate to acquire ACCUs for their own offsetting requirements.
When a landholder partners with Select Carbon, in addition to the project manager being appointed to their project as a key contact, they also have direct access to Select Carbon’s trading manager who will be able to explain the carbon markets in depth, including various options to sell and buy ACCUs. Your trading contact at Select Carbon will help you manage long-term trading strategies, risk exposure and ensure trading and marketing objectives are achieved.
Over time, Select Carbon has developed its contracting and offtake model to suit the needs of the buyers and sellers. This includes offtake agreements, forward contracts, futures contracts and options contracts with varying volumes and market-linked pricing mechanisms. As we are able to structure such contracts for buyers, it also increases the optionality for landholders to sell at suitable structures for them and opens up many avenues to monetise ACCUs. There is an increasingly accepted market view that the secondary market will become the predominant avenue for sale of carbon credits, and Select Carbon is a leader in developing these relationships. Select Carbon’s has established capability and relationships with major resource and oil and gas companies, allowing it to develop bespoke trading and marketing options.
A number of financing opportunities also become available to Landholders with a carbon project as a result of being able to monetise ACCUs. These have included prepayments secured by a future ACCU stream, financing based on a portfolio of ACCUs from the amalgamation of landholder ACCUs or the sale of the carbon project to a third party. Each option has a different risk profile and Select Carbon can assist in guiding landholders through this process in choosing the best option for them.