ENVIRONMENTAL OFFSET TRADING PLATFORM AND METHOD

• US 20090157534A1
• Filed: 12/13/2007
• Published: 06/18/2009
• Est. Priority Date: 12/13/2007
• Status: Abandoned Application

• Current Assignee: The Bank of New York Mellon (Bank of New York Mellon Corporation)
• Original Assignee: The Bank of New York Mellon (Bank of New York Mellon Corporation)
• Inventors: ARSIWALA, Hozaifa
• Application Number:
  US11/955,712
• Publication Number:
  US 20090157534A1
• Time in Patent Office: Days
• US Class Current: 705/30
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/12 Accounting
• CPC Class Codes: Y02P 90/84 Greenhouse gas [GHG] management systems

Abstract

A method of accounting for environmental offset credits from multiple offset markets includes registering the offset credit; assigning a unique identifier; receiving notification of a pending trade between a buyer/seller of an offset in one of the multiple offset markets. If the seller has an amount of environmental offsets sufficient for the trade and the trade is consummated, buyer and seller accounts are adjusted with corresponding credits and debits. Otherwise, a notification of insufficient environmental offsets to carry out the trade is provided. In a further aspect, instead of receiving a notification of a pending trade, the trade may be executed. In another embodiment, a computer-implemented trading platform includes a processor; a memory with a structured database that stores information relating to two or more environmental offset credits established in the two or more different offset markets. A bid or ask quote for an environmental offset credit is received and a buyer is matched by the processor with a seller of based on the received bid or ask quote. If the seller has an amount of environmental offset credits sufficient for the trade, a trade of an environmental offset credit is executed between the buyer and the seller. Otherwise, a notification of insufficient environmental offset credits to carry out the trade is provided.

Claims

1. A method of accounting for environmental offset credits established in one or more offset markets, the method comprising:

registering an environmental offset credit to an owner thereof;

assigning a unique identifier to the environmental offset credit;

receiving instructions of a pending trade of the environmental offset credit between a buyer and a seller;

if the seller has an amount of environmental offset credit sufficient for the trade, adjusting buyer and seller accounts with corresponding credits and debits;

otherwise, providing a notification of an insufficient environmental offset credit to carry out the trade.

2. The method of claim 1, wherein the environmental offset credit comprises a carbon offset.

3. The method of claim 2, wherein the carbon offset credit comprises a CFI carbon credit issued by the Chicago Climate Exchange.

4. The method of claim 2, wherein the carbon offset credit comprises a Certified Emission Reduction (CER) or Emission Reduction Unit (ERU) compliant under the Kyoto Protocol.

5. The method of claim 1, wherein the environmental offset credit is a verified offset.

6. The method of claim 5, wherein the environmental offset credit has been verified using a verification standard compliant under the Kyoto Protocol.

7. The method of claim 1, further comprising crediting a client account with the environmental offset credit.

8. The method of claim 1, wherein the environment offset credit has been verified under a voluntary offset scheme.

9. The method of claim 8, wherein the environmental offset credit comprises a carbon offset verified using the VER+standard.

10. The method of claim 8, wherein the environmental offset credit comprises a carbon offset verified using the Voluntary Offset Standard (VOS).

11. The method of claim 8, wherein the environmental offset credit comprises a carbon offset verified using the Voluntary Carbon Standard (VCS).

12. The method of claim 1, wherein the environmental offset credit comprises an acid rain offset.

13. The method of claim 1, further comprising registering a plurality of environmental offsets to respective owners thereof, wherein two or more of the environmental offsets have been verified under different voluntary standards.

14. The method of claim 1, further comprising registering a plurality of environmental offset credits to respective owners thereof, wherein two or more of the environmental offset credits are traded in at least two different offset markets.

15. The method of claim 1, wherein the trade notification comprises price and quantity information.

16. The method of claim 1, wherein the environmental offset credit is a governmentally-regulated offset credit, and wherein the method further comprises providing an update to one or more associated national offset registries.

17. A method of trading and accounting for environmental offset credits established in two or more different offset markets, the method comprising:

registering, in a database, a plurality of environmental offset credits established in the two or more different offset markets;

assigning each of said plurality of environmental offset credits with a unique identifier;

receiving a bid or ask quote for one of the plurality of environmental offsets established in one of the two or more different offset markets;

matching a buyer with a seller of said one of the plurality of environmental offset credits based, at least in part, on the received bid or ask quote;

if the seller has an amount of environmental offset credits sufficient for a trade, executing a trade of said one of the plurality of environmental offset credits between the buyer and the seller; and

otherwise, providing a notification of insufficient environmental offset credits to carry out the trade to at least the seller.

18. The method of claim 17, further comprising entering an offsetting credit and debit of the traded environmental offset credit to respective client accounts maintained in the database.

19. The method of claim 17, further comprising providing a notification of the traded environmental offset credit to the buyer and seller.

20. The method of claim 17, further comprising providing a notification of the traded environmental offset credit to a national registry associated with said one of the plurality of environmental offset credits.

21. The method of claim 20, wherein said providing a notification comprises providing an electronic notification to the associated national registry via a computer network.

22. The method of claim 17, further comprising executing, between at least one different buyer or seller, multiple trades of different environmental offset credits verified under different standards.

23. The method of claim 17, further comprising computing an offset credit amount and cash value to be applied to the executed trade.

24. The method of claim 22, further comprising performing a clearing and netting operation to consolidate and report trades between at least a first buyer-seller pair during a predetermined time period.

25. The method of claim 17, further comprising converting a physical offset certificate associated with the traded environmental offset credit into a book-entry form maintained in the database.

26. The method of claim 17, wherein said one of the plurality of environmental offset credits has been established under a regulated mandatory scheme.

27. The method of claim 17, wherein said one of the plurality of environmental offset credits has been established under a voluntary offset scheme.

28. The method of claim 17, wherein said plurality of environmental offset credits established in the two or more different offset markets have been established under two or more voluntary offset schemes selected from the group consisting of a Gold Standard, a Voluntary Carbon Standard (VCS), a Green-e standard, CCB standards, Plan Vivo, Climate Neutral Network, Greenhouse Friendly, WBCSD/WRI Protocol, CCAR, VER+standard, ISO 14064, VOS, Social Carbon, and DEFRA.

29. The method of claim 17, further comprising storing, in the database, a record of current and historical offset credit positions and prices for one or more clients.

30. The method of claim 17, further comprising providing client position statements relating to one or more of the plurality of environmental offset credits established in the two or more different offset markets.

31. The method of claim 17, further comprising, prior to said executing a trade, confirming that related offset documentation is complete, and scanning said completed related offset documentation to said database.

32. A computer-implemented platform useful in accounting for environmental offset credit trades made in two or more offset markets, the trading platform comprising:

one or more processors;

a memory operatively coupled to the one or more processors, said memory comprising a structured database therein configured to store information relating to one or more environmental offset credits established in the two or more different offset markets;

an interface to the one or more processors configured to forward a bid and/or ask quote for one of the two or more environmental offset credits to said one or more processors, said one or more processors matching a buyer with a seller of said one of the two or more environmental offset credits based, at least in part, on the received bid or ask quote,

said one of the two or more environmental offset credits being established in one of the two or more different offset markets;

wherein, if the seller has an amount of environmental offset credits sufficient for the trade, the one or more processors generates a signal that indicates, to at least the seller, that sufficient environmental offsets are available to carry out a trade of said one of the two or more environmental offset credits between the buyer and the seller, and

wherein, if the seller does not have an amount of environmental offset credits sufficient for the trade, the one or more processors generates a signal that indicates, to at least the seller, that insufficient environmental offsets are available to carry out the trade.

33. The computer-implemented platform of claim 32, wherein the one or more processors executes a trade of said one of the two or more environmental offset credits between the buyer and the seller if the seller has an amount of environmental offset credits sufficient for the trade.

34. The computer-implemented platform of claim 33, wherein the one or more processors are configured to credit a client account, in the structured database, with a traded environmental offset credit.

35. The computer-implemented platform of claim 33, wherein the one or more processors are configured to compute an offset credit amount and cash value to be applied to the executed trade.

36. The computer-implemented platform of claim 33, wherein the one or more processors are configured to enter an offsetting credit and debit of the traded environmental offset credit into respective client accounts maintained in the structured database.

37. The computer-implemented platform of claim 33, wherein the one or more processors are configured to provide a notification of the traded environmental offset credit to the buyer and seller via a network.

38. The computer-implemented platform of claim 33, wherein the one or more processors are configured to provide, via a computer network, an electronic notification of the traded environmental offset credit to a national registry associated with a traded environmental offset credit.

39. The computer-implemented platform of claim 33, wherein the one or more processors are configured to perform a clearing and netting operation to consolidate and report trades between at least a first buyer-seller pair during a predetermined time period.

40. The computer-implemented platform of claim 33, wherein the one or more processors are configured to store information representing a physical offset certificate associated with a traded environmental offset credit into a book-entry form maintained in the structured database.

41. The computer-implemented platform of claim 32, wherein the one or more processors are configured to register, in the structured database, an environmental offset credit to an owner thereof and to assign a unique identifier to the environmental offset credit.

42. The computer-implemented platform of claim 41, wherein the unique identifier comprises either a CUSIP or an ISIN identification number.

43. The computer-implemented platform of claim 32, wherein the one or more processors are configured to execute, between at least one different buyer or seller, multiple trades of different environmental offset credits verified under different standards.

44. The computer-implemented platform of claim 32, wherein said structured database stores information relating to a plurality of environmental offset credits established in the two or more different offset markets and established under two or more voluntary offset schemes selected from the group consisting of a Gold Standard, a Voluntary Carbon Standard (VCS), a Green-e standard, CCB standards, Plan Vivo, Climate Neutral Network, Greenhouse Friendly, WBCSD/WRI Protocol, CCAR, VER+standard, ISO 14064, VOS, Social Carbon, and DEFRA.

45. The computer-implemented platform of claim 32, wherein the one or more processors are configured to provide client position statements relating to one or more of the plurality of environmental offset credits established in the two or more different offset markets.

46. A method of converting an environmental offset credit, the method comprising:

retiring an offset credit verified under a first verification standard;

verifying a new offset credit under a second verification standard, said new offset credit being essentially equivalent to the first offset credit at least in terms of representing a desired reduction in emissions; and

thereafter, registering the new offset credit in a registry to a owner thereof.

47. The method of claim 46, wherein the first and second verification standards comprise different voluntary carbon standards.