Notice. This page is informational and general in nature. OTC placements remain subject to KYC and AML, sanctions screening, buyer eligibility criteria, registry and title verification, counterparty acceptability, and definitive documentation. FG Capital Advisors is not an exchange, registry, bank, or lender. We do not accept client money or custody carbon credits. No pricing, liquidity, or timeline is guaranteed.
How OTC Carbon Credit Placement Works
OTC placement is not “finding a buyer.” It is a controlled execution process: qualify the credits, package the file to buyer compliance standards, run a bid process, agree terms, and settle with an auditable registry transfer.
To submit your file for review, use the Sign Up link below. You will be asked for registry evidence, credit specs, and basic settlement preferences.
What “OTC Placement” Means in Practice
OTC placement is a private sale process for carbon credits. Trades are negotiated bilaterally and settled under contract terms that define payment, delivery acceptance, and registry transfer mechanics.
- Spot. Credits are already issued and held in a registry account, ready to transfer.
- Forward delivery. Delivery occurs later against issuance milestones or scheduled releases.
- Programmatic purchasing. Multiple deliveries under a framework with defined specs, reporting, and price logic.
The execution risk is rarely “market interest.” It is usually documentation quality, claims risk, settlement structure, and whether the file clears buyer compliance.
Step-by-Step: The Placement Workflow
Below is the standard execution sequence that produces written bids and a contractable path to transfer.
| Step | What Happens | What We Need | Output |
|---|---|---|---|
| 1) Intake and readiness check | We confirm what you are selling, who owns it, and what constraints apply (spot vs forward, volumes, pricing expectations, claims restrictions). | Seller entity details, authority, headline specs, target range, preferred settlement method. | Document request list and execution plan. |
| 2) Registry and title verification | We validate registry evidence, transferability, and ownership control, and identify gaps that will block bids. | Registry account evidence, serial range proof (where applicable), credit specs, supporting documentation. | Verified inventory summary and risk flags. |
| 3) Buyer pack and positioning | We package a buyer-ready file with the information compliance teams ask for, including acceptable claims framing. | Project details, vintage, methodology, geography, restrictions, delivery schedule if forward. | Buyer pack and terms grid. |
| 4) Targeted buyer outreach | We approach qualified buyers, collect IOIs, and run a shortlist process based on conditions, not just price. | Confirmed minimum terms, deadlines, and acceptable counterparty parameters. | IOIs, feedback, shortlist, bid discipline. |
| 5) Bid to term agreement | We align on commercial terms and conditions, then move to definitive documentation coordination. | Seller confirmation on price, volume, timing, settlement conditions. | Trade recap and documentation path. |
| 6) Settlement and registry transfer | We coordinate closing steps through payment execution and registry transfer confirmation. | Final contract, settlement instructions, registry transfer readiness. | Settlement completion and transfer evidence. |
What Buyers Underwrite
Carbon credits are screened like any other asset with reputational and compliance exposure. If your file is thin, bids either weaken or do not appear.
- Title and control. Who owns the credits, and can they be transferred without dispute?
- Registry integrity. Clear registry evidence, correct credit type, and transfer mechanics that match the contract.
- Eligibility screens. Internal buyer rules on project type, geography, vintage, and acceptable claims.
- Claims risk. Whether the credit story is defensible under scrutiny and consistent with documentation.
- Settlement safety. Whether payment and delivery acceptance are cleanly defined and enforceable.
If you want us to review your file for bid blockers, submit via the Sign Up link above with complete registry evidence and specs.
Contracting and Settlement Mechanics
Execution-grade OTC trades define, in writing, how money moves and how delivery is confirmed.
- Delivery definition. What exactly counts as delivery (registry transfer confirmation, retirement evidence if required).
- Payment mechanics. Timing, currency, and conditions. Settlement method depends on counterparty risk and compliance requirements.
- Default and remedies. What happens if payment fails, transfer fails, or the file does not match representations.
- Conditions precedent. KYC and AML clearance, sanctions screening, authority checks, and registry readiness.
The goal is a structure that both sides can approve internally and execute without improvisation.
Typical Timelines
Timelines vary with documentation quality, buyer screens, and settlement method. These ranges assume responsive parties and clean registry evidence.
| Phase | Typical Range | Primary Dependencies |
|---|---|---|
| Qualification and packaging | 3 to 10 business days | Registry evidence, seller authority, project file completeness. |
| Outreach and IOIs | 7 to 21 business days | Buyer appetite, eligibility screens, claims risk review. |
| Contract and close | 5 to 20 business days | Legal review speed, KYC and AML clearance, settlement method. |
No timeline is guaranteed. If buyers cannot clear the file, the process pauses until gaps are fixed.
Fees in Plain Terms
Most engagements include a one-time setup fee and a placement fee tied to closed transaction value.
- Setup fee. Typically USD 5,000 to 20,000, depending on portfolio complexity, readiness, and packaging workload.
- Placement fee. Typically 1% to 5% of transaction value, generally payable at closing under agreed terms.
Fees are confirmed in the engagement terms before outreach begins.
Common Failure Points and How to Avoid Them
- Weak registry evidence. Buyers will not “assume” availability. Provide clean proof and keep it consistent.
- Unclear authority. If signatory authority and UBO details are messy, compliance slows or stops the trade.
- Claims that outpace documentation. Buyers will discount or refuse credits that create reputational exposure.
- Settlement ambiguity. If delivery acceptance and payment conditions are vague, legal and compliance will reject the structure.
- Overpricing. Unrealistic targets waste time. The market will tell you what clears.
If you want to sell credits OTC, start with a buyer-ready file and a settlement method that compliance can approve. Use the Sign Up link to submit your registry evidence and specifications.
FAQ
Do you guarantee a buyer, a price, or a closing date?
No. OTC placement is best-efforts and subject to buyer eligibility screens, compliance clearance, definitive documentation, and settlement mechanics. No liquidity, pricing, or timeline is guaranteed.
What is the fastest way to get credible bids?
Provide clean registry evidence, clear ownership and authority, a defensible credit narrative, and realistic terms. Thin files produce slow or weak bids.
Can you place forward deliveries and offtake?
Yes, if the issuance pathway is credible and milestones are documentable. Forward structures typically require tighter conditions, clearer default remedies, and stronger buyer protections.
Do you take custody of credits or client funds?
No. We do not custody credits and we do not accept client money. Settlement and transfer occur between counterparties under definitive documentation, with third-party coordination where required.
What does the setup fee cover?
Setup covers qualification, registry and title review, buyer pack preparation, target buyer mapping, and the launch of disciplined outreach.
What information do you need to start?
Registry details, volume (or delivery schedule), standard and vintage, project type and geography, proof of control, and your target range plus preferred settlement method.
How do I start?
Use our Sign Up link to submit your file.
Disclosure. This content is for informational purposes and does not constitute legal, tax, accounting, or financial advice. FG Capital Advisors does not operate a registry, exchange, or trading venue and does not accept client money or custody carbon credits. Any support is provided on a best-efforts basis and remains subject to third-party approvals, compliance checks, and definitive documentation. No pricing, liquidity, or timeline is guaranteed.
