Base Carbon Receives First Carbon Credits With Article 6 Authorization

Base Carbon Receives First Carbon Credits With Article 6 Authorization - Carbon Herald
Credit: Andrii Yalanskyi | Shutterstock

Base Carbon Inc. (OTCQX: BCBNF) – a company providing capital, development expertise and management resources to carbon removal and offset projects, announced it has received a transfer of 717,558 correspondingly adjusted carbon credits, verified by Verra with an Article 6 Authorized Label. 

Under the Article 6 label, countries are able to transfer carbon credits earned from the reduction of greenhouse gas emissions across borders to meet their climate targets. 

Relevant: STX Group, Base Carbon Team Up For Carbon Investment Initiative

The 717,558 credits are the initial transfer from a Rwanda cookstoves project, wth project developers Base Carbon and the DelAgua Group. The agreement between the two project developers is for an aggregate minimum of 6.6 million carbon credits that are subject to revenue sharing.

The transfer marks an important industry milestone, as the credits are the first Article 6 Authorized labeled carbon credits issued by Verra.

Relevant: Base Carbon Reports Second-Quarter 2023 Financial Results

Back in December 2023, the Government of Rwanda issued a letter of authorization (LOA) with respect to the Rwanda cookstoves project which resulted in Verra applying its Article 6 Authorized label to the project. 

According to the letter of authorization, 2% of any issued Article 6 Authorized labeled carbon credit are to be immediately retired to help offset global emissions, 10% are to be transferred to the Government of Rwanda to help achieve its nationally determined emission reduction targets, and 5% of the net revenue from the sale of the remaining credits will be remitted to United Nations’ global adaptation fund.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts
Translate »
Total
0
Share