Bonsucro is Developing a Credit Trading Platform  

19th April 2019

Bonsucro is delighted to announce that it is investing in the development of an online credit trading platform that will make it easier to buy and sell Bonsucro credits, increasing the support of sustainably-produced sugarcane.  

Major global companies usBonsucro credit trades to support the production of sustainable sugarcane and advance their sustainable sourcing goals – without physically buying sugar. Credits are a way to enable flow of certified production in the context of regulated markets in complex supply chains. 

By purchasing Bonsucro credits (one credit is equivalent to one tonne of sugar or ethanol), they also pay a small fee to Bonsucro ($1.30/per credit), a portion of which is invested directly in on-the-ground initiatives to help farms and mills adopt more sustainable practices. 

Credits are a critical component of Bonsucro’s strategy as they reward certified mills and farms that have been through a change process, while generating resources for Bonsucro to invest in improvement and support those that are committed to change. They then support buyers to achieve their sustainable procurement targets and act as a catalyst for sustainable sugarcane production. 

At the moment, these trades are carried out through negotiations directly between the seller (the mill) and the buyer, and paper-based administration of trades 

Bonsucro’s new online credit trading platform is being created with the intended outcomes of: 

  • Increasing market uptake 
  • Supporting trading liquidity 
  • Increasing transparency 
  • Easing administrative burdens 
  • Increased liquidity and benefits for producers 
  • Providing all members equal access to credit trading opportunities  
  • Make it easier for buyers to find sellers and facilitate transactions 

The new platform will have four kinds of Bonsucro CreditsCane CreditsEthanol CreditsMolasses Credits, and Sugar Credits. Notably, the introduction of Cane Credits will allow Bonsucro certified farmers that hold their own certificates to sell their credits to buyers. Sellers of Bonsucro Credits must be producers, hold a valid certificate, only sell what they produce physically, and be Bonsucro members. Buyers must also be Bonsucro members but do not need to be certified.  

Bonsucro plans to launch the platform in Q4 of 2019. Stay tuned for news and dates of the official launch. Please find more information on the credit trading platform from the presentation at Bonsucro Global Week here in case you missed it. 

Bonsucro & Renovabio: Exploring synergies and advancing GHG reduction in Brazil

Project partners: Earth innovation Institute and Agroicone
Project length: 12 months Budget: $22,347,79
Supporting the Sustainable Development Goals:

RenovaBio is a Brazilian biofuel policy designed to decrease Brazil’s greenhouse gas emissions by 10% by 2029 [compared to 2018], in line with the Paris Agreement on climate change. It aims to do this by incentivising fuel distributors to blend more biofuels into their products. RenovaBio has established a certification scheme for biofuel, towards which Brazilian sugarcane mills are working, that will enable them to trade decarbonisation credits on the Brazilian stock exchange.

Bonsucro continuously seeks to grow awareness and adoption of its standard. In Brazil, this can be achieved by aligning its framework with RenovaBio to optimise costs and time for mills. In 2019, Bonsucro received a grant of US $22,000 from the Earth Innovation Institute to provide a common understanding of how RenovaBio works and how other regions might benefit from this approach.

Bonsucro addressed the topic at Bonsucro Global Week in Bangkok in March 2019, and through three stakeholder forums in Brazil. The Bonsucro team also commissioned a technical comparison study, which enabled the organisation to understand how best to align with RenovaBio’s requirements.

The study has been shared with key stakeholders in Brazil and the project is now complete. Bonsucro is working to incorporate the study’s findings and recommendations through its ongoing Production Standard Revision process.

By aligning opportunities of optimisation, joint work and integration with the Brazilian Government and reflecting it in the Bonsucro Standard, Bonsucro can help to ensure that more producers adopt sustainability standards like Bonsucro.