Carbon Trading Terms & Conditions

1. Introduction and Regulatory Framework

1.1 Platform Overview

EcoCarbon™ is the carbon credit issuance, verification, and trading platform operated by Dokovo Global Private Limited. These terms govern the generation, ownership, transfer, and trading of carbon credits through our platform.

1.2 India Carbon Credit Trading Scheme (CCTS) Alignment

Our platform is designed for alignment with India's Carbon Credit Trading Scheme (CCTS) as notified by the Ministry of Power under the Energy Conservation (Amendment) Act, 2022. Key regulatory milestones:

• June 2023: CCTS Rules notified
• July 2024: Bureau of Energy Efficiency (BEE) framework operationalized
• H2 2026: Anticipated commencement of formal trading

Until formal CCTS trading commences, credits generated through our platform are voluntary carbon credits aligned with international standards.

1.3 Voluntary vs. Compliance Markets

• Voluntary Credits: Currently issued for voluntary offsetting, ESG reporting, and BRSR compliance support
• Compliance Credits: Will be issued once BEE-designated entities and trading mechanisms are operational
• Platform supports transition from voluntary to compliance credits upon regulatory approval

2. Carbon Credit Issuance

2.1 Eligibility and Data Requirements

To generate carbon credits through EcoCarbon™, entities must:

• Be registered on the EcoNidhi™ platform with verified credentials
• Maintain accurate material tracking data through EcoTrack™ for minimum 3 months
• Provide auditable documentation of waste/material recovery activities
• Demonstrate additionality (activities beyond business-as-usual)

2.2 Measurement, Reporting, and Verification (MRV)

Our MRV process follows:

• Measurement: Automated data collection from weighbridge integration and manual entry validation
• Reporting: Standardized templates aligned with GHG Protocol and ISO 14064
• Verification: Third-Party Desktop Due Diligence (TPDD) for initial credits; physical verification for high-volume generators

2.3 Credit Calculation Methodology

Carbon credit calculations are based on:

• Material-specific emission factors from IPCC, EPA, or India-specific databases
• Baseline emissions for virgin material production
• Net emissions reduction from recycling/recovery activities
• Conservative assumptions and uncertainty discounts applied

Methodology documents are available upon request and subject to periodic updates based on regulatory guidance.

2.4 Issuance Timelines

• Data submission to issuance: 30-60 days (depending on verification requirements)
• TPDD verification: 14-21 days
• Physical verification (if required): Additional 14 days
• Credits issued only after successful verification completion

3. Credit Ownership and Registry

3.1 Ownership Rights

Upon issuance:

• Credits are owned by the registered entity that generated the underlying emission reductions
• Ownership is recorded in our digital registry with unique serial numbers
• Credits may be held, transferred, or retired at owner's discretion
• Platform retains no ownership stake in issued credits

3.2 Registry Registration

• All credits registered on EcoNidhi™ internal registry
• Future integration with India Grid Controller of India Limited (GRID-India) registry upon CCTS operationalization
• Option for dual registration with international registries (Verra, Gold Standard) for additional credibility
• Registry tracks full chain of custody from issuance to retirement

3.3 Credit Transfer

• Transfers executed through platform with verified counterparty
• Transfer fee: 1% of transaction value or ₹1,000, whichever is higher
• Transfer completion: T+1 business day
• Both parties receive transfer confirmation with updated registry records

3.4 Credit Retirement

• Retirement is permanent and irreversible
• Retirement certificate issued with verifiable serial numbers
• Suitable for ESG reporting, BRSR disclosure, voluntary offsetting claims
• Public retirement statement option for transparency

4. Trading Terms

4.1 Trading Mechanism

EcoCarbon™ facilitates:

• Bilateral Trading: Direct negotiation between registered parties
• Platform Matching: Anonymous matching of buy/sell orders
• Forward Contracts: Agreements for future credit delivery (with advance payment)

4.2 Price Discovery

• Prices determined by market supply and demand
• Platform publishes indicative price ranges based on recent transactions
• Current Indian voluntary market range: ₹800-1,000 per tCO₂e (indicative)
• No minimum or maximum price floors/ceilings imposed by platform

4.3 Settlement

• Settlement: T+2 business days (payment and credit transfer)
• Escrow mechanism for buyer protection
• Credits transferred only upon payment confirmation
• Failed settlements result in order cancellation

4.4 Minimum Transaction

• Minimum trade: 10 tCO₂e or ₹10,000, whichever is higher
• No maximum limit for single transactions
• Bulk trading discounts available for transactions above 1,000 tCO₂e

5. Verification and Audit Rights

5.1 Platform Audit Rights

By using EcoCarbon™, you grant us the right to:

• Audit underlying data and documentation at any time
• Request additional verification for suspicious activities
• Engage third-party auditors for random verification
• Share data with regulators upon official request

5.2 Third-Party Verification Agencies

• Verification conducted by empaneled agencies
• Agencies accredited under ISO 14065 or equivalent
• Verification costs borne by credit generator
• Verification reports retained for minimum 10 years

5.3 Data Accuracy Obligations

You represent and warrant that:

• All submitted data is accurate, complete, and truthful
• No material misrepresentation in emission reduction claims
• Activities are additional and not double-counted
• You have legal authority to generate credits from reported activities

5.4 Fraud Prevention and Consequences

• Fraudulent data submission: Immediate account termination
• Issued credits may be revoked if fraud discovered post-issuance
• Financial liability for damages caused to credit buyers
• Referral to law enforcement for criminal fraud
• Industry blacklisting and regulatory notification

6. Market Risk Disclaimers

6.1 Price Volatility

Important: Carbon credit prices are subject to significant volatility. Historical prices are not indicative of future values. Prices may decline substantially based on market conditions, regulatory changes, or oversupply.

6.2 Regulatory Risk

• CCTS rules and implementation may change
• Voluntary credits may not be recognized under compliance markets
• International recognition of Indian credits not guaranteed
• Tax treatment may change

6.3 No Guarantee of Value

EcoNidhi makes no representations or warranties regarding:

• Future value of carbon credits
• Ability to sell credits at any particular price
• Acceptance of credits by specific buyers or programs
• ROI or financial returns from carbon credit activities

6.4 Market Liquidity

• No guarantee of market liquidity or buyers
• Selling large volumes may impact market prices
• Platform does not act as market maker

7. Global Standards Alignment

7.1 GHG Protocol

Our methodology aligns with:

• GHG Protocol Corporate Standard for Scope 1, 2, 3 emissions
• GHG Protocol for Project Accounting
• Guidance on baseline setting and additionality

7.2 Verra VCS Alignment

• Methodologies referenced from Verified Carbon Standard
• Option for VCS registration for international recognition
• Alignment with VCS permanence and additionality requirements

7.3 ISO Standards

• ISO 14064: GHG quantification and reporting
• ISO 14067: Carbon footprint of products
• ISO 14065: Verification body accreditation

7.4 Gold Standard Compatibility

For projects meeting additional sustainable development criteria, Gold Standard certification pathway available.

8. Fees and Charges

• Verification Fee: ₹15,000 - ₹50,000 based on project size (TPDD)
• Issuance Fee: 5% of credit value at issuance
• Transfer Fee: 1% of transaction value
• Retirement Fee: ₹500 per certificate
• Annual Registry Fee: Included in subscription

All fees subject to 18% GST.

9. Governing Law and Disputes

These terms are governed by Indian law. Disputes shall be resolved through arbitration in Mumbai under the Arbitration and Conciliation Act, 1996.

10. Contact

• Carbon Trading Support: carbon@econidhi.com
• Verification Queries: verification@econidhi.com
• Phone: +91 22 6789 5100