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Book & Claim
Innovative Mechanism
Book and claim is a market mechanism that decouples physical products from their environmental attributes. The physical flow of materials is independent of the transfer of these attributes. Low-carbon materials can be traded alongside conventionally produced materials in existing markets without the need for differentiation, while environmental attributes are transferred separately in the form of certificates. This helps reduce the complexity of distributing and trading low-carbon materials.
What a Book and Claim mechanisms looks like
Note: Using steel industry as an example. It may vary depending on industry-specific conditions.
Traditional trading mechanism
under Book&Claim Mechanism
Green Material Trading System
Advantages of the Book and Claim Mechanism
Broader Participation:
Brings in a wider range of buyers across different tiers, including companies throughout multi-layered supply chains.
More Efficient Value Transfer:
Enables emissions reduction value to flow more effectively along the value chain, making low-carbon attributes easier to translate into tangible benefits and match with end buyers willing to pay.
Stronger Mechanism Support:
Improves transparency through clearer rules and disclosures, while offering greater flexibility to support advanced market mechanisms for deep decarbonization technologies.