Marketable Carbon Units (MCUs)
An MCU is the unit of exchange in CR-I. One MCU represents one verified and certified metric tonne of carbon dioxide equivalent (tCO2e) reduced or removed.
What an MCU represents
All GHG reductions and removals are expressed in carbon dioxide equivalent (CO2e) using 100-year Global Warming Potential values. Projects use IPCC Fourth Assessment Report (AR4) values. One Marketable Carbon Unit (MCU) equals one verified and certified metric tonne of CO2e.
The life of an MCU
- Issuance. After a VVB verifies a monitoring period and NCCF approves the request for issuance, NCCF issues MCUs into the project proponent’s account.
- Transfer. MCUs can move between IPP and TO accounts, for example after a sale.
- Retirement. The holder permanently withdraws MCUs from circulation to claim the offset.
- Cancellation. The holder permanently removes MCUs from circulation for a purpose other than offsetting.
Retirement and cancellation are permanent and cannot be reversed.
Serial numbers and tracking
Every MCU has a unique serial number. NCCF tracks each MCU from issuance until it is retired or cancelled, including every transfer, to prevent double counting, double selling and fraud.
Prices
NCCF does not set MCU prices. Prices are set by buyers and sellers in a free market.
Read next
Sources
- Programme Guide v1.0, sections 1.6, 1.7 and 11.2
- Carbon Standard v1.1, section 9.1
- Terms and Conditions v1.0, section 8
