Carbon Credits
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Carbon Credits

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Note: we are still firm believers that reducing your consumption is by far the easiest and best way to help the planet - but why only do one thing when you can do many!

What are Carbon Credits?

  • In a nutshell, a Carbon Credit is 1 ton of Carbon Dioxide (CO2), represented as a unit.
  • Carbon credit schemes were created to tax carbon emitters, to use the power of economics to disincentive pollution!
  • A company, farm or other can create carbon credits by reducing their CO2 output or taking CO2 out of the air. They sell this reduction in CO2 to the government or private market and get a Carbon Credit created.
  • ACCUs are a unit representing carbon reduction (known as carbon abatement). The Clean Energy Regulator (CER) issues them to registered projects as part of the Australian Government’s Emissions Reduction Fund (ERF).
  • Buying credits is great, but the power comes in retiring them, so they can’t be bought or sold anymore, forcing new credits to be created and more CO2 to be captured.
  • You can read more about Carbon Credits in our detailed blog post.

Example:

  • Total Petroleum Pty Ltd is given a limit of emitting 1000Kg of CO2 per annum by the Government,
  • If they actually emit 2000Kg of CO2 this year, they need to buy 1000Kgs of Carbon Credits to offset their over-emission (and balance their books).
  • Buying them isn’t enough—they need to retire the credits:
    • This essentially means cashing them in to use this year,
    • Once retired, those specific credits can’t be used again,
    • If Total Petroleum Pty Ltd never retired the credits, they would still be 1000Kgs over their CO2 limit.

How do I earn Carbon Credits?

  • By simply depositing A$, Bobbob gives you, our loyal customers, Carbon Credits.
  • Each deposit will result in 0.065% allocated to you in Carbon Credits! That’s it, as simple as that.
  • Those Carbon Credits belong to you, if the price of ACCUs goes up, so will your token value.

How do we use Carbon Credits?

  • Bobbob’s Carbon Credits are created by Betacarbon, a company based in Australia.
  • Betacarbon buys ACCUs (Australian Carbon Credit Units) and creates a digital asset representing the ACCU. They store the ACCU with a custodian while allowing others to buy and sell the Betacarbon Carbon Credit (BCAU), thus democratising this once illusive and hard-to-access market.

Why are carbon credits valuable?

  • Companies that emit CO2 need to purchase Carbon Credits to, in essence, reduce or balance their emissions.
  • As an example, a company like BP might have 1000 units of carbon they’re allowed to emit a year, if they actually emit 2000 units, they need to buy 1000 carbon credits to offset their over-emission.
  • The more you buy and retire, with basic supply and demand, the more expensive it is for companies to buy in order to offset. Think of this as a WallStreetBets sort of moment. You can make it harder for companies to offset thus put pressure on them to pollute less!
  • Note: we are still firm believers that reducing your consumption is by far the easiest and best way to help the planet - but why only do one thing when you can do many!

What is the price of a Carbon Credit

  • You can find the price of different ACCUs here.
  • You can find the price of BCAUs here.
  • The initial price of BCAUs we purchased was A$0.40 per BCAU. This is what is allocated to our first customers.

What can I do with them?

  • For now, you cannot sell or send the Carbon Credits, but in the future, these will be unlocked for you to do what you want with them.
  • We do recommend retiring them, to truly help the state of the planet. Keep your eyes peeled for more info.

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