C-Capsules are certificates evidencing carbon removal activity. Similar in concept to RECS and Guarantees of Origin, C-Capsules are tradeable attribute certificates.
Carbon removal is the durable sequestration of carbon that would have otherwise been emitted to, or remain in, the atmosphere.
Many processes can capture and make active use of carbon, removing it from the atmospheric cycle. However, most of the industrial scale processes for sequestration by carbon capture are early-stage technologies or practices that have yet to realise scale efficiencies and financial viability. C-Capsule is a market-based solution designed to accelerate the deployment of these technologies.
Whilst carbon offsetting can be measurable, it is based on a conceptual ‘business as usual’ case of avoided emissions and seeks to quantify the emissions that would otherwise have happened. Science based targets require science-based evidence of real actions taken. Carbon markets need to evolve beyond the traditional offset approach to achieve net zero goals; a transition recognised by many governments, NGOs, and market actors.
C-Capsule brings the measurable facts approach that is well established in renewable energy to the carbon market. Every net tonne of CO₂ captured and securely stored in a stable form is a tonne removed from the atmospheric cycle. This activity is recorded by a unique C-Capsule certificate for each tonne. C-Capsules can be sold to emitters who can then claim the associated captured CO₂ to mitigate their emissions within their sustainability accounting. Each C-Capsule carries a unique serial number to guarantee no double counting or double claim. C-Capsules provides a market mechanism for an additional revenue stream for carbon removal activities and can be freely traded until a claim has been made.
Carbon removal developers are required to develop a methodology adherent to C-Capsule’s ‘Methodology Protocol’. The Protocol outlines the quality threshold for developers to register their Facilities on our Registry. All methodologies are subject to independent Accreditation by the International REC Standard Foundation.
C-Capsule is designed to serve markets of all kinds, with a focus on providing robust evidence for consumers and reporting authorities. Although being developed as a voluntary system, C-Capsule can be adopted by governments as the infrastructure to facilitate local climate change policy.
Fiscal policies for tackling climate change generally involve carbon taxes or allowances. There are also funds effectively ‘buying’ carbon removals. C-Capsule can work alongside a tax mechanism. Where carbon taxes are applied to emitters it may be possible that C-Capsules be used as a means of offsetting a tax obligation. They could also be used as the evidence against which a purchasing obligation or carbon removal fund payments can be managed.
Ideal climate change solutions involve not emitting carbon. However, some activities will continue to emit carbon for the foreseeable future. Organisations wishing to mitigate their carbon impact can purchase a mitigation service just like any other aspect of their supply chain. C-Capsule enables those organisations to do so in a secure, transparent, and trusted manner, ensuring measured environmental benefit.
C-Capsule aims to be complementary to any policy outcomes generated at this year’s COP26, particularly those regarding Article 6 of the Paris Agreement and the impact of ITMO’s (internationally transferred mitigation outcomes) on a country’s Nationally Determined Contributions (NDC).