Carbon Credit Backed Lending And Inventory Finance
Carbon credits become financeable only after issuance. At that point they stop being a projection and start behaving like a commodity inventory.
We structure lending facilities secured by issued credits so projects can access working capital without immediate sale of inventory.
Book A ConsultationWhy Lending Exists In Carbon Markets
Once credits are issued, projects face a commercial decision: sell immediately or hold inventory for better pricing. Immediate sale often sacrifices value, but holding inventory requires liquidity.
Inventory finance solves this. Instead of selling credits, the project borrows against them.
Unlike early development funding described in the project finance stage , this lending relies on an existing asset.
How Collateral Works
Lenders do not rely on environmental claims. They rely on control of the asset.
- registry account security control
- pledge of environmental attributes
- verified issuance records
- approved buyers and liquidity pathways
Borrowing bases are typically calculated as a percentage of verified credits, adjusted for price volatility and buyer concentration.
Where Lending Fits In The Lifecycle
Lending occurs after issuance but before sale.
Financing bridges the time between credit creation and credit sale.
Typical Structure
Facilities commonly include:
- borrowing base advance rates
- margin calls on price movement
- approved buyer lists
- controlled settlement accounts
Projects that already have a forward purchase agreement typically obtain stronger terms because exit liquidity is clearer.
Our Role
We prepare the credit file lenders actually need: collateral documentation, registry mechanics, sale pathways, and reporting.
The objective is to treat credits as a financeable asset rather than a speculative certificate.
If your project has issued credits and you want liquidity without selling inventory, we structure the lending facility and introduce appropriate capital providers.
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