CADRS vs
Carbon Credits

Financial Definition

Offset asset. Substance-based digital commodity.

Financial derivative. Based on a promise of future actions.

Issued

At completion of the underlying climate action (retrospectively).

At commencement of the underlying climate action (prospective).

Risk

Less risk. No future practical, financial or legal risk for the farmer. Clear disclosure to the buyer resolving interpretation and product risks.

Many risks. Many risks associated with the completion and audit of the project including complete failure. Undisclosed risk for the farmer and the buyer.

Product Disclosure Statement?

Yes.

No.

Permanent Offset?

Yes. World's first permanent offset. CADRs are valid offset assets, immutable in perpetuity.

No. Valid only for the period under the project contract. Extinguished at the end of the project contract.

Climate Action funding

Now. Concentrates investment on current action, now.

Next 100 years. Amortised investment over 100 years (or 25yr discounted).

Real & completed Climate Action?

Yes. Completed and audited prior to CADR issuance.

No. A carbon credit does not complete its associated climate action claim until the end of the 100year period (or discounted shorter period), and in fact, may not ever substantiate this claim within the contracted period.

Audit

Is audited at completion of the project for project outcomes.

Includes significant assumptions of project performance during unaudited periods.

Supports Sustainability claims?

Yes. Factual substantiation of sustainability-related financial disclosures.

No. A derivative, substantiated by a promise of future action.

Climate Action completed when issued?

Yes.

No.

Deemed to satisfy Australian SafeGuard Mechanism?

No.

ACCUs only (Australian Carbon Credit Units).