Q: What is the Difference between your market and the OTC, I am currently using?
A: The Entrex Carbon Market offers a Regulation D securitized product. Carbon offset buyers can rely on SEC and FINRA standards being met, which eliminates a great deal of time and expensive due diligence associated with carbon offset purchasing. This means that buyers can include many smaller offerings, which would have previously been cost-prohibitive into their portfolios, and you get your offsets sold.
Q: What is a Regulated Market, and why do we want to participate in it?
A: The standards of the US Securities and Exchange Commission www.sec.gov/ and Financial Industry Regulatory Authority www.finra.org/ require that the carbon-offset projects that appear on the Entrex Carbon Market meet the following criteria:
1) Must use a United Nations Framework Convention on Climate Change (UNFCCC) Clean Development Mechanism (CDM) Methodology http://cdm.unfccc.int/methodologies/index.html
2) Proof of Chain of Custody of ownership of the offsets
3) Project is submitting offsets that are exclusive to the Entrex Carbon Market (offsets cannot be listed anywhere else)
4) Project must be listed on an approved registry that meets UNFCCC standards, such as but not limited to: VERRA, ACR, etc. for Compliance or Voluntarily markets.
Q: How do you securitize my offsets?
A: The offset generation process is reviewed by Net Zero Analysis before being submitted to the Entrex Carbon Market for aggregation into a Carbon Offset Certificate.
Q: Why do we need to only list our offsets on your platform?
A: SEC and FINRA rules require exclusivity.
Q: Can we get them back if we sell them to another customer?
A: If they were securitized and sold on the Entrex platform, they must be purchased back on the platform.
Q: What are the costs for me to join the Entrex Carbon Market?
A: Issuers: $1,500 annual fee, $5,000 per issuance (one issuance is all the offsets of one vintage year that you are putting on the platform.) + Current SEC review costs.
Q: What is covered in the $5,000.00 per issuance fee?
A: These are regulatory costs.
Q: Can we purchase an Annual Subscription that will allow us to list as many offsets as we generate in a year?
A: Not currently, but that is in development.
Q: Why do we need chain of custody documents back to the project Developer or Project Proponent?
A: Must prove ownership of those offsets to satisfy SEC and FINRA compliance.
Q: How does a trade happen on the platform?
A: The platform has an ask-bid format. Once a match is made, it goes to the clearinghouse. The match stays in clearinghouse until buyer’s funding is verified. After verification, the trade settles, moving money to issuer and offsets to buyer.
Q: Aside from the 10% to the platform, what other fees are associated with a trade?
A: Banking transfer fees and small clearinghouse function fees.
Q: Can you outline the payment process for my offsets?
A: Once the trade is matched and settled, we ACH the funds to your account (90% of gross minus any banking fees and clearinghouse fees.)
Q: How often is money sent out from the platform to my account?
A: Currently, weekly. 12AM Friday PST.