Land owner and investors considering selling carbon credits are advised to carefully consider all marketplaces and the terms and conditions of participating. There are typically two approaches for entering carbon markets: using an aggregator or a data manager.

Aggregator: MBC Carbon sells entire project, control, and credits to the aggregator in terms and conditions set up in a contract. The aggregator then has complete control over carbon credits, when to sell, price, and data shared.

Data Manager: MBC Carbon pays a data manager to help them enter the marketplace for a fee or revenue percentage. The land owner or investor has not sold real interests in the projects or carbon credits.

Some companies may have a price floor. Available information on company websites appears to range between $10 to $20 per metric ton of CO2-eq (carbon dioxide equivalent). The land owner or investor may have to pay the fees, or the company may keep a portion of the payment or percentage of carbon credits to cover the fees, so the actual amount the land gets is typically less than the price listed. For example, if the company keeps 15% of the credits earned to cover fees and withholds 25% of the credits to cover the natural loss of sequestered carbon, then the land owner or investor gets to keep 60%.

At MBC Carbon we understand Data Privacy is an important aspect to consider when choosing a carbon market. It is important to receive a clear answer from the marketplace about who owns your data, what can be done with your data, and how your individual or aggregated data can be used or sold.

The payment could be in the form of cash, cryptocurrency, or credits toward purchases.

At MBC Carbon we understand Data Privacy is an important aspect to consider when choosing a carbon market. It is important to receive a clear answer from the marketplace about who owns your data, what can be done with your data, and how your individual or aggregated data can be used or sold.

Some companies may allow carbon credits to be banked and sold later in case the market price goes up.

Our clients will have to pay a fee for soil sampling or third-party verification, although some companies may cover these costs. There may be additional fees such as administrative, registration, insurance, and/or transaction fees depending on the agreement. MBC Carbon may withhold a percentage of carbon credits to cover carbon loss and administrative fees.

Land owners or investors who adopted one of our qualifying practices before joining the carbon market may be able to receive payment for the years before joining the carbon program. Some companies allow our growers to go back a limited number of years and get paid for a practice they have adopted (usually between two and five years).

There are often a specific number of times we will have to report their data and provide soils samples. A third-party verifier may have to visit the farm at a specified period as well.

Contracts could be 10 to 20 years or more, depending on the company.

There could be penalties for the contract holder if the land is rented out or sold during the contract with MBC Carbon and the tenant or purchaser does not follow the agreed-upon sequestration practices.

Anyone with an ownership stake in the land will need to be involved in the process. Ownership of MBC Carbon credits can depend on the leasing agreement. For rented land, growers may need to provide an attestation of their right to market carbon on the property to the company. Because of the long-term nature of the contracts, it is important to understand what implications there are if the growers stops renting MBC Carbon land in the contract.