Volume of credits is based on an ERPA for 1 million credits in year 1. Purchase of 1.2 million in year 2 with an additional 20% added via ERPA each year.
Ownership of 40 projects which generate 1 million credits per annum for 10 years.
Sales of credits will depend on pricing and country specific requirements and have not been shown.
Using ‘blockchain’ and ‘smart contracts’ will create transparency, accountability and further, will be able to demonstrate this with an ‘evidence based process’.
The UN has a tried and tested system in place – people do point out the ‘short comings’ of such a system – this has historically been based on ‘tax evasion’. In short, a ‘primary credit’ – one that has been generated by a project activity is, tax free when sold. However, if that credit is not retired – i.e. used to offset a company’s carbon tax liability, by the purchaser, but on sold, that credit is deemed a ‘secondary credit’ and as such is taxable. That is to say the profit made on the sale is liable to tax in the jurisdiction that the trade took place.