Starting in February 2013, ImpactMarket is collaborating with GICGroup on an innovative new concept known as the Commodity Plus Carbon (CPC) futures contract. This new derivative contract targets individual commodities and functions by bundling the value of a producer’s carbon reduction practices with the value of the physical commodity. The CPC will enable producers and processors to capture the marginal value of their verifiable GHG reductions and hedge that value in international transactions as well as regional and international voluntary markets. The CPC will facilitate better aggregation among producers engaged in growing a particular commodity with a carbon reducing trait, while lowering transaction costs and improving the traceability of commodities produced with lower GHG emissions.
The first project involving the CPC will be in Ecuador where GICGroup and local partner, C&D, will be developing a new carbon monetization vehicle for cocoa growers in Ecuador. By means of a new commodity (cocoa) plus carbon futures contract, participating growers of aromatic cocoa will be able to maximize their revenues derived from good agricultural practices and incentivize additional tree plantings of aromatic cocoa varieties. Under the project, Ecuador will serve as a pilot project for all aromatic cocoa crop production.
For press coverage of the CPC futures contract in the BioFuelsDigest, click here.
To learn more about the CPC contract and opportunities for early-stage investors, please feel free to contact us directly.