1.1 Tripartite Classification Framework for Carbon Credit Tokens
The taxonomy of Carbon Credit Tokens (CCTs) proposed by STEELLDY is structured around three fundamental categories, each presenting a distinct tax risk profile under the Pillar Two framework. This tripartite classification | direct possession tokens, pool tokens, and synthetic tokens | constitutes an essential analytical framework for…
1.1 Replicating Carbon Price Exposure Without Physical Holding of Credits
Synthetic tokens offer exposure to carbon credit prices without requiring the physical holding of the underlying credits, by using derivative mechanisms such as futures contracts, total return swaps, or price oracles that replicate the performance of a carbon market benchmark index. This structure offers advantages…
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