At CarbonCure, our mission extends beyond developing and deploying groundbreaking technologies that reduce the carbon footprint of concrete. We also play a crucial role in helping our valued concrete producer partners leverage a new revenue stream through carbon credits generated by using CarbonCure. The more truckloads of concrete you produce with CarbonCure, the more credits you can generate, and our shared revenue from these credits can offset the costs of using our technologies over time. At CarbonCure, our team is working behind the scenes to generate high-quality carbon credits based on your batch data and marketing and selling these credits at competitive prices to maximize their revenue potential to you. 

Below, we highlight the complexities of carbon credit markets, the unique sales process, the types of deals we manage, and how our team invests immense effort to drive value to you, our concrete producer partners!

Carbon Credit Markets

A carbon credit represents one metric ton of reduced or removed carbon dioxide (CO₂) or equivalent greenhouse gasses (GHGs). Companies that generate carbon credits, like CarbonCure, sell these credits to buyers who need to offset the emissions they have generated in the course of their business operations. Buyers typically need to offset emissions because 1) they are bound by law under a compliance regime to meet certain emissions limits in the jurisdiction in which they do business or 2) they have set voluntary sustainability goals, such as being carbon neutral or “net zero."

CarbonCure currently only sells credits to companies seeking to meet voluntary sustainability goals, offering a way for climate-focused corporations and organizations to voluntarily contribute to climate action.

Deloitte’s Experience with CarbonCure’s Carbon Credits Deloitte Canada’s decision to purchase carbon credits from CarbonCure aligns with its WorldClimate strategy to address hard-to-abate emissions and support the development of high-impact climate solutions. By investing in CarbonCure carbon credits, Deloitte is not only diversifying its carbon portfolio but also sending a strong market signal for the adoption of scalable climate tech.  Read our Deloitte case study.

The Carbon Credit Sales Process: A Complex Journey Navigated by CarbonCure

Selling carbon credits is not a simple transaction, and the sales cycle may be lengthy, with some deals taking 18 months or longer to finalize. The long timeline is a result of both the lengthy processing time required by third-party credit verifiers and auditors as well as the need to tailor deals to meet the specific requirements of buyers. The sales process typically follows these steps: 

1. Credit Validation and Verification

Each credit we sell must be verified to ensure it represents one metric ton of CO₂ reduced or removed from the atmosphere. While some credits are self-certified, the majority of the credits we sell today are part of projects (a pool of credits from a collection of concrete producers) which are validated by third-party auditors called validation and verification bodies (VVBs) to ensure their consistency with a set methodology. Once a project is validated, CarbonCure credits generated from that project are verified by VVBs and Verra (the world's leading standards body) before they can be registered by Verra for sale. This process can be very time consuming and based on the workload of VVBs and Verra. Check out our blog post on the topic for more information.

2. Lead Generation and Qualification

The sales process begins with lead generation, which can stem from various sources, including webinars, events and direct inquiries to CarbonCure’s carbon credit team. Once a lead is established, we conduct an introductory call to explain our technologies and the carbon credit program, gathering information to determine the buyer's specific needs and if there is a fit.

2. Due Diligence

Before a credit buyer is ready to consider commercial terms for a transaction with CarbonCure, the carbon credit team fields a wide range of questions such as the process of cement and concrete manufacturing, the science behind carbon mineralization and cement reduction, the day-to-day operations of a ready mix or precast system, and the validation procedures and testing that happens during the third-party verification process and Verra’s review. 

3. Negotiation and Deal Structuring

After the initial discussions, we enter the negotiation phase, where we present different options tailored to the buyer's requirements. These can include various types of credits and/or potential alternative market-based mechanisms that align with the buyer's greenhouse gas accounting practices. This phase involves detailed discussions on pricing, volumes and the specific terms of the deal.

4. Contracting 

Once the terms are agreed upon, the contracting process begins. Each deal typically involves a custom-made bilateral contract with unique clauses and covenants tailored to the specific transaction. The contracting phase can be particularly challenging, especially when engaging with large corporations with multiple layers of approval. 

5. Fulfillment

After the contract is signed, we move to fulfillment, where the credits are either transferred to the buyer or retired on their behalf, allowing them to achieve their climate commitments.

Types of Deals: Spot Transactions and Long-Term Offtakes

In the carbon credit market, deals generally fall into two categories: spot transactions and long-term offtake agreements.

Spot transactions are one-time deals where existing carbon credit inventory is sold to the buyer. Spot transactions are fast and transactional, providing immediate revenue.

Long-term offtakes are more strategic deals where credits are often referred to as “sold forward” over multiple years. These deals provide revenue certainty and allow us to plan long-term investments. However, they are more complex and involve detailed negotiations and longer contracting phases.

How Our Carbon Credit Team Drives Value for Producers

Our carbon credit team plays a key role in maximizing the value of the CarbonCure credits we generate. Here’s how we do it:

1. Understanding Market Needs

The voluntary carbon market is continuously evolving. Our team constantly monitors market trends and buyer preferences to ensure that CarbonCure’s credits meet new and existing standards. This includes understanding the buyer's budget and their motivations for purchasing credits, such as meeting carbon reduction goals or purchasing credits within a specific geography or which contribute to activities within their value chain. We also work with intermediaries that are buying for specific customers or who plan to cultivate new buyers of high-quality credits.

2. Articulating Integrity

Our carbon credits have been recognized for their high integrity which warrants a higher value in the voluntary carbon market. Our team works with a wide range of corporations, including Fortune 500s, small businesses and market intermediaries, to support the use of our innovative, carbon-saving technologies. This involves highlighting the real and measurable reduction in CO₂ emissions, the rigorous verification process we follow, the durable climate benefits of using our technologies and the opportunity to scale decarbonization within the hard-to-decarbonize construction sector.

3. Delivering Value

The aim of our team is to maximize the economic benefit of the carbon credits, which strengthens the adoption and utilization rate of CO₂ mineralization in concrete. Since the team was formed in 2021, CarbonCure has shared more than $4.9 million with our producer partners. This success in monetizing carbon credits would not be possible without collaboration with our partners, and led by our team’s efforts to target the right companies, build trust with credit buyers, and structure credit transactions that maximize impact.  

4. Overcoming Challenges

Our team is committed to overcoming any and all obstacles — from navigating legal requirements to balancing pricing options with the need to move credit volume — to deliver the best possible outcomes for our producer partners, credit buyers and the planet.

Ensuring Your Success

Our carbon credit team is not just selling credits — they are navigating a complex and challenging market, focused on delivering real value for your business. By working tirelessly to secure sizable credit transactions, they ensure that our producer partners benefit fully from their participation in this program. 

The next time you receive a revenue share from CarbonCure’s Carbon Credit Program, know that an entire team behind the scenes is celebrating your success and applauding your sustainability efforts. 

For more information on carbon markets or to learn more about CarbonCure’s Carbon Credit Program, contact our team.

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