Carbon Finance and Offtake Structuring | Prepaid Forwards, Price Floors, Long-Term Offtakes

Professional Services. Carbon finance and offtake structuring for developers and corporate buyers. Prepared September 2025.

Carbon Finance and Offtake Structuring

Developers want cash before or at first issuance. Buyers want credible supply at a fair, bankable price. We sit in the middle, engineer the terms, and close. Prepaid forwards, price floors with upside, collars, streaming style deals, and long term offtakes that clear audit and treasury checks.

Who it suits

Project developers seeking non-dilutive funding. Corporates securing multi-year credits for targets.

Project types

NBS, ARR, IFM, REDD+, blue carbon, waste methane, industrial energy efficiency, biochar.

Standards

Verra VCS, Gold Standard, ART TREES, ACR, CAR. Article 6 language on request.

Finance Tools We Arrange

Instrument What it does Typical economics Best stage
Prepaid forward Buyer prepays for future deliveries. Funds MRV, verification, ramp. Discount to forward curve. Volume schedule with make-goods. Validation to late pre-issuance
Price floor with upside Guarantees a minimum price. Buyer shares upside above a strike. Floor plus participation or a call option overlay. Late pre-issuance to early issuance
Collar Sets a floor and a cap. Reduces earnings volatility. Narrower discount. Less upside, more certainty. Post-issuance programs
Streaming style Ongoing capital for a fixed percentage of output. Upfront plus per-credit delivery price. Multi-year portfolios
Plain long-term offtake Multi-year purchase commitment on defined quality and volumes. Indexed pricing with quality screens and buffers. Any stage with credible pipeline

Final terms depend on methodology risk, tenure, MRV quality, delivery schedule, and buyer credit.

Outcomes For Developers And Buyers

Developers

  • Cash against near-term deliveries to finish MRV and verification.
  • Lower cost of capital than straight equity when docs are clean.
  • Bankable paper that supports bridges and registry workflows.

Corporate buyers

  • Locked supply for multi-year targets with audit-ready terms.
  • Price certainty via floors, caps, or collars. No games at delivery.
  • Quality gates that screen for permanence and reputational risk.

Eligibility And Quality Screens

For developers

  • Monitoring report near final and VVB engaged or shortlisted.
  • Land tenure and stakeholder files clean and consistent.
  • Methodology locked. No unresolved show-stoppers.
  • Registry plan and buffer pool approach defined.

For buyers

  • Budgeted volumes and credit type aligned to claims policy.
  • Willingness to use escrow or LC for prepayments if needed.
  • Acceptance of quality screens and delivery audits.
  • Clear retirements plan tied to reporting cycles.

What Drives Pricing

Core drivers

  • Verification and methodology risk profile.
  • Delivery schedule and slippage protections.
  • Counterparty credit and escrow mechanics.
  • Market depth for the credit type and co-benefits.

Common terms

  • Volume flex bands with make-good windows.
  • Quality gates, leakage rules, reversal coverage.
  • Escrow or registry assignment with waterfalls.
  • Change-in-law and replacement credit clauses.

How We Close Your Deal

  1. Scope. Define volumes, credit type, delivery calendar, and buyer profile.
  2. Data room. PDD, monitoring plan, VVB status, tenure, ESG and community files.
  3. Term sheet. Pick structure. Prepay, floor, collar, stream, or plain offtake.
  4. Diligence. Technical review, QA on MRV, legal and sanctions checks, registry path.
  5. Docs. Offtake, escrow or LC, assignments, remedies, and performance tests.
  6. Close and monitor. Fund, deliver, retire, report. Amend if volumes shift inside guards.

Documents We Need To Start

Project pack

PDD or draft, methodology, maps, tenure, stakeholder records, MRV plan, VVB engagement status.

Supply plan

Forecast by vintage, delivery calendar, buffer approach, risk register, mitigation steps.

Corporate

KYC for counterparties, sanctions screens, governance and signatory proofs.

Commercial

Offtake preferences, pricing approach, escrow or LC options, registry account details.

Common Pitfalls And How We Avoid Them

  • Slippage. We set flex bands, cure windows, and make-good rules upfront.
  • Methodology drift. We lock the version and add replacement rules if standards change.
  • Tenure gaps. Legal review and community files must match the claims. No shortcuts.
  • Payment risk. Escrow, LC, or registry assignment with clear waterfalls.

Frequently Asked Questions

Do buyers always prepay

No. Many start with post-issuance offtake, then add partial prepay once delivery discipline is proven.

What if verification slips

We use delivery windows with make-good periods and, when needed, substitute volumes from the same project family.

How do we protect quality

Quality gates, third-party checks, and registry controls. Credits that fail screens do not ship.

Can we blend price protection with upside

Yes. Floors with upside sharing or collars give certainty with room to benefit if the market improves.

Start Your Carbon Finance or Offtake

Send your project pack or buyer brief. We will propose a structure, price path, and closing timeline.

Start Now

Disclaimer. FG Capital Advisors provides advisory and arrangement services. Terms are set by contracting parties after diligence. Pricing and volumes depend on verification outcomes, methodology rules, and credit markets.